Many convenience and energy retailers are sitting on a valuable asset that they have not yet fully monetized: first party data. This data, collected from consumer interactions and transactions, can unveil valuable insights into consumer behavior and preferences.
According to a recent study, the global first party data monetization market is expected to eclipse $700 billion by 2025. This rapid growth highlights the importance of retailers taking action to monetize their data. To participate in this market, however, retailers will be required to fully tap into the potential of their first party data. Otherwise, they will have missed out on this substantial opportunity to drive revenue and improve operations.
How Do I Translate My Data into Revenue?
Beyond ensuring that your data strategy will enable your organization to effectively tap into the market of retail media networks, there are several key initiatives specific to Convenience and Energy that will allow your first party data to empower your organization and your marketers.
“One area where first party data can be particularly valuable for convenience and energy retailers is in offsetting the costs of EV charging,” explains Kevin Struthers, Associate Director of Digital at W. Capra. As the number of electric vehicles on the road continues to grow, retailers face increasing pressure to invest in charging infrastructure. “Leveraging first party data, retailers can better understand consumer demand for EV charging and make more informed decisions about where to invest in charging stations.”
Retailers can also use profits from first party data monetization to invest in kitchen management, thus evolving the consideration set for EV consumers that are hungry and looking for food options. Such a shift can help retailers to differentiate themselves from competitors and drive more foot traffic into their stores.
Given Where I Am Today, That Sounds Daunting
Struthers advises, “Monetizing first party data is not a one-time event, but rather a journey that involves several steps. Retailers must first understand what data they have and develop a strategy that involves an addressable consumer. It’s also important to balance people, process, and technology to augment your tech stack for optimizing data processing. This initiative is not just about keeping inventory in the store; it’s about a change in business model to ensure long-term profitability and effective reinvestment into data as a company asset.”
The stakes are high for retailers who fail to act. With billions of dollars at stake and the market of data monetization growing rapidly, convenience retailers face increasing competition from grocery chains that are changing their store formats to compete in same-day consumption categories. By taking steps to monetize first party data, retailers can not only offset costs and drive revenue, but also stay competitive in an ever-changing landscape.
Kevin Struthers is the Associate Director of Digital at W. Capra, focused on helping clients to optimize their technology and data processing to maximize revenue. For further discussion, please contact Kevin at [email protected].