April 16, 2020
4 mins to read
How Can You Bring Technology Radicalization To The Retail Industry?
ECommerce development is no longer a new paradigm for customers that has long posed threats to the existence of the retail sector. The damage to physical stores is nothing less than a big blow to its survival. In the last few years, we have seen so many popular stores to crumble down. But, what wonders us is the fact that global eCommerce sales are just about 10% of total retail sales. Although technology advancements are in favor of eCommerce growth in the next five-ten years, retail sectors also have technical support to their advantages.
Provided a slight edge over eCommerce retails in terms of the human factor, the feel and touch experience and the immediacy of delivery, retails can bring about disruptions through digital radicalization.
Retails gain digital advantages as they beef up the use of technology in retail operations.
As retailers grow and evolve, they must think of a change to their business models in the digitally influenced environment and leverage opportunities to enhance customer
engagement and also increase overall shopping experience. And digital factors in to unleash a profound impact in the retail spectrum and its customers.
Key technology drivers to shape retail demographics
We tend to transform the existing retail business model riding the wave of digital disruption which is increasing the volume of data every day. Hence, this is opening up avenues to collect, process, and share a large amount of data or we call it big data.
Customer segmentation
Instead of mass targeting, big data is empowering the process of customer segmentation that enables micro-segmentation offering better possibilities to know your customers better.
Artificial Intelligence solutions in combination with advanced data analytics derive insights into products purchased, customer buying behavior, context of purchase, and also medium of purchase. As you get more precise information, your marketing team can create more personal and meaningful communication with your customers. As per a source, big data-based customer segmentation helps increase consumer outreach by up to 5-6%.
Positioning
The competition is stiff with online retailers. Combatting over only price and quality does not win you the battle. Enhance overall shopping experience by incorporating additional services and facilities and leisure provision. A digitally-enabled mechanism such as extended reality is there to enhance the customer experience. Extended Reality also provides information about how the desired product will fit and look good in your home. Besides, an in-store trial experience that combines 360-degree video helps customers choose the best fit and style.
By offering highly one-on-one personal service to your customers, you can reduce product abandonment and return as well.
On-demand retail approaches
Retailers need to work in tandem with on-demand customer needs. The same tide has been felt across automotive, grocery and service. Integrated with centralized inventory, the convenience of mobile devices, the retailers must focus on how to bring in deals to attract on-the-go consumers. Using some growing formats such as flash sales or subscriptions, you can drive in more customers of their own choice of customers. In addition to this, retailers can utilize dedicated locker rooms for customers to cater to trends like Buy online pick up in store orders.
Using near-field technology (NFC), retailers can merge their physical stores with online stores increase the inventory of the store, provide exact product information to the customers, thus ensuring a good revenue stream for retailers.
In-store shopping experience
Internet of Things equipped smart and connected devices are highly desired by retailers to transform the shopping experience of the shoppers. Processing a large amount of customer data, IoT can offer accurate information customers need to make informed decisions. In today’s retail shopping, you can also embed sensors to the shelves to track inventory. As it tracks inventories, customers are always ensured of high-end shopping experience.
Also Read :[How Magneto ECommerce Drives Growth For Fashion Industry?]
Another key technology intervention to shape retail operation is customer chatbots.
This messaging as a method to serve customers has reduced the volume of direct customer calls. Without many human interventions, we can solve customer problems and lower cart abandonment.
We also cannot ignore the dominance of autonomous checkouts. In retail stores, self-checkouts are a way toward solving customer pain points. By easing this process, retailers can employ a swift mobile checkout process to enable pick and go with items that combine the tailor-made pricing and POS solutions. The method is so robust in reducing longer queues while improving customer experience.
Supply chain, Logistics and warehousing
Predictive analytics are there to solve last-mile delivery woes to some length. Big retailers are strategizing to use self-driving logistics services to disrupt shipping operations. At the same time, the whole backend operations of retails are moving to integrated supply network
whereas logistics are embracing shared and digitally-enabled services like drone-based services.
Summing up
A like online stores, retailers are free to leverage different high-end technology tools to empower their business operations and find a means to survive in this fast-moving digital world. From AI to IoT and predictive analytics to mobile applications, we provide personalized digital transformation services to our customers.
Bytes Technolab is your right partner as you envision grabbing better opportunities from digitally-enabled retail operations.Get in touch with us to enjoy the radicalization of the retail sector with us today.
