Retailers are experimenting with a myriad of ways to respond to new shopper expectations, bridge digital and physical shopping experiences and try literally dozens of ways to transform the retail experience, handle back-office processes better and much more.
Drivers of digital transformation in retail
- The evolving expectations from the so-called digital or omni-channel shopper who really does not care about channels as much as we do.
- The need to blur digital and physical experiences with in-store experiences as a crucial element and the de facto dissapearance of the borders between digital and physical already existing in the mind of the consumer.
- Challenges on the level of the supply chain which is really crucial and all too often far from digitized enough. Speed, time and a transparent view are key.
- Competition from digital and overall customer experiencechampions and increasing cost pressure. Fortunately, thanks to new digital possibilities, there are ample ways to decrease costs, among others on the level of digitization and supply chain.
- The impact and opportunities in areas such as data-driven optimization andmarketing, empowerment of staff and new technologies.
- An appetite from shoppers to have a personalized experience, which is pretty hard to achieve as it depends on the context and can range from the need to find and buy things fast to the exact opposite: have a relaxed and immersive shopping experience with digital technologies available all over the place and used for anything from smart displays to even music and ambiance.
Digital Value in Retail
Reduce Cost and Drive Revenue:
Payments and Connected Advertising Alternative payment methods and connected advertising/marketing are major sources of Digital Value at Stake in retail. New payment options, including smartphones, payment apps, and advanced, analyticsenabled methods, offer retailers a means to reduce transaction costs and increase customer convenience. Connected advertising and marketing have the potential to drive revenue growth through highly effective, targeted communications to consumers. Advanced analytics make this possible across a wide array of channels: online, via mobile devices, and in stores. Yet, to succeed, connected ads and marketing must leverage other digital business capabilities (such as payments) that promote customer engagement and generate critical insights.
Increase Efficiency and Improve Productivity:
Next-Generation Workers One of the biggest areas of digital value is using technology to change the way the workforce collaborates, meets, and shares information. Tools such as mobile collaboration and video conferencing, combined with policy changes such as bring your own device (BYOD) and telecommuting, reduce costs and increase employee productivity. While such tools and policies are well suited to headquarters operations, they can also be successfully applied to store operations as well.
Build Customer Trust:
Cybersecurity Retail is particularly vulnerable to cyber attacks given all the customer credit card accounts involved. Generating valuable insights into buyer behavior only increases the appeal of retail targets. Customers (and shareholders) expect the stores they buy from to protect their sensitive information. At the same time, the nature of today’s cybersecurity threats demands a new approach to cybersecurity.
Enhance Customer Experience and Increase Sales:
In-Store Analytics, Connected Ads, Endless Aisles, Remote Expert Data gathering and analytics across all channels are vital to success in retail, but generating useful data and insights in physical stores is a particular challenge for established retailers. Where online channels provide abundant information on dwell times, browsing patterns, and conversion, stores frequently do not. By implementing a combination of smart store technologies such as IP cameras, sensors, Wi-Fi tags, and mobile technologies, stores become equally valuable sources of insight into buyer behavior and the interaction between customers and staff.
Improve Efficiency and Safety:
Connected Supply Chain Supply chains offer significant potential to generate greater value in retail, whether through leveraging scale in negotiating with suppliers, improving efficiency and productivity in warehouses, reducing the need for stock checks, automating resupply, or improving collaboration and communication with suppliers. For one large retailer, the priority was