With both large and small retailers, one topic has now been discussed that engenders fear, frustration, boredom or excitement: GDPR. There is a general concern among them in relation to GDPR which can be repeatedly heard: it is a costly, legally enforced burden that will hamper any business based on knowledge of customer information, especially for large companies.
In particular those, who are able to look a little further and with a longer perspective, may become potential champions of this battle when they understand what the GDPR is hiding. This opportunity could be especially attractive for small and agile food businesses.
In particular, a smaller company could help GDPR at least compare some of competitive conditions. For example, with the consent of customer, a small retailer may ask for any data about that person from any large supermarket where he has previously purchased, which may include all loyalty card data and purchases made over the years. With a simple click, one big competitive advantage could disappear and smaller companies could help to design a more appropriate assortment and re-target upcoming bids.
This insight first appeared in Contigen
Swinging your fingers can now dissapear a big competitive advantage for big retailers, while smaller companies can use it to create new and innovative business models.
While this will provide exciting opportunities for small innovative businesses, they will have to meet a number of criteria when using them so that they can use them effectively.
First, they will have to convince consumers that they will be trusted managers of their data. Large multinational chains will have a significant advantage here because they have introduced their brands built for decades, so smaller companies without international reputation will have to be more convincing. For example, they will have to find a way to easily and clearly explain the methods of data protection they use, pick up their role in local community or work with existing trusted brands to improve their awareness.
Another thing that smaller companies will have to do is to create convincing arguments about how they can use acquired data. They can, for example, design new services such as personalized packaging of goods, new shopping routes, change of outlet design or new pricing and discount programs.
It does not just have to be about supermarkets that will ask for customer data sharing. These may include data on purchasing behavior, social data and responses to offers, data from consumer devices, etc. This can open new opportunities for small businesses to make their bids more targeted.
Overall, GDPR and customer data usage offer smaller businesses an opportunity to create innovative and highly competitive business models that can actively interfere with hegemony of large merchants. Why not use this opportunity.