The key to seeing where retail is headed lies in customer transaction data. Industry giants are increasingly investing heavily in data and analytics, making it essential for businesses to stay ahead. By using customer transaction data, retailers can analyze consumer data from well over 100 million credit and debit cards, see spending trends, competitors’ performance, and the consumer economy.
Gen Z consumers, who are heavily influenced by social media, are buying directly through social media at skyrocketing rates. TikTok, with over 150 million users in the United States, is the number-one place for Gen Zers to discover new brands and use it more than Google to search for products online. This has led to the launch of TikTok Shop, an e-commerce feature officially launched in September 2023.
Consumer spending shot up across the whole population as soon as TikTok Shop had its full rollout. However, Gen Z’s monthly spending spiked nearly 200% by November 2023, with an estimated $260 million in sales in October 2023, implying annual sales revenue of more than $3 billion.
In conclusion, real-time data is crucial for retailers to stay competitive in the ever-changing retail market. By following customer transaction data, businesses can better understand consumer behavior, competitor performance, and the consumer economy, ultimately leading to better decision-making and increased sales.
Source: Retail Drive
