Retail digital transformation: The fastest way to omnichannel journey
The pandemic has compelled the retail sector to change and reconsider its retail digital transformation methods. Retailers are considering their best course of action in light of this recent move. They are interested in learning how they may leverage technology to develop novel business models and increase income.
Let’s explore retail digital transformation and what it means as the fastest way to an omnichannel journey!
What is Digital Transformation in the Retail Industry?
Every sector and industry that we are familiar with today is undergoing a digital transition, starting with the media, education, healthcare, finance, banking, and more. Organizations adopt digital technologies to enhance their offerings to clients and raise customer satisfaction levels. Based on client needs and demands, retail is undergoing a digital transition.
Retailers consider how they may leverage evolving technologies to develop new methods to boost revenue and establish novel business models when determining whether to go digital. As digital tools and technology create, they will have a significant impact on how the company organizes its workflow as well as the services it offers.
For retailers, digital transformation means going beyond incremental improvements. It is about establishing a collaborative relationship made possible by technological means. Along with data intelligence, agility, customer focus, new value propositions, and innovation, there is also a focus on cost containment, increased efficiency, and process simplification.
Retailers must reevaluate every part of their organization when considering the digital transformation in retail, from sourcing to inventory management, personnel management and training, and customer experience management.
By providing customers with the services and products they require, digital transformation in retail can manage customer retention and happiness. The way retailers conduct business has undergone a significant transition because of big data analytics, location-based services, and mobile apps. However, there may be some obstacles on the way to digital transformation.
Why need Retail Digital Transformation?
The reason you should be concerned about retail digital transformation is fundamentally straightforward: leaders in the retail industry are already pursuing it, and customers value it and reward companies who provide it.
Out of all industries, retail has the most varied combination of marketing channels. Customers who shop through these channels spend 30% more throughout their lifetime, 4% more on average during in-store visits, and 10% more online. When compared to single-channel shoppers, omnichannel customers visit their favorite stores 23% more frequently and are more willing to share their recommendations.
With ROI like that, it’s difficult to ignore the digital transformation of retail. Few industries are as pressured as retail to provide wonderful omnichannel experiences, but they are also not in a position to see the same type of return on their omnichannel expenditures.
Key drivers of digital transformation in retail
One of the major sectors transforming to service-oriented models and automation is retail. Let’s examine the main factors that underlie this process in more detail.
One thing is abundantly clear as a result of the pandemic: a wide range of data-driven and IoT-enabled retail solutions will be crucial. These include anything that makes it possible to use data to manage costs, optimize operations, make customers feel safe, protect workers, and possibly even choose which stores to close.
Supply chain issues
Supply chains for retailers are not fully digitalized. Only 58% of consumers report being happy with their buying experience, according to a Deloitte supply chain executive survey. To create an omnichannel, customer-driven environment, retail supply chains need systems that enable coordinated planning, intelligent supply, and dynamic fulfillment.
Data-driven marketing opportunities
The retail digital transformation revolution includes chances for data-driven marketing and optimization, where maintaining contact with clients throughout their whole life cycle is crucial. Personal data must be managed in a way that makes sense to the consumer according to a customer-centered strategy. Retailers are now paying closer attention to problems including user privacy, the processing of personal data, and the security of personal data.
Retailers need to recognize that emerging technologies can’t be seen in isolation if they want to facilitate digital change in the industry. Contact us to choose the appropriate retail digital transformation and integration suitable.
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