How is Digital Transformation Having an Impact on Retail Businesses?
June 16, 2020
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The businesses of today have undergone a metamorphosis due to digital transformation. Also, thanks to this phenomenon, customers and brands have come closer to each other and are able to share their thoughts about each other seamlessly. Out of all the industries that digital transformation has had an impact upon, retail industry turns out to be the most significant one.
Retailers of today are making the most out of digital technologies and are bringing innovations to their brand so that they can fulfill the demands of customers – a need for personalized, real-time landscape of products and services. They’re turning data and insights into intelligent action, for making digital transformation in retail successful. After all, digital transformation is all about bringing data, people, processes together and offering value to customers so that the companies can gain competitive advantage over others.
Today’s retail transformation scenario looks somewhat like this – Mobile apps and Omni channel experiences have replaced brick and mortar stores as well as conventional buying experiences enabling the shopping environments to evolve. As customers prefer buying online, retailers are recrafting their delivery models and enhancing shopping experiences across all channels.
Now, as we are discussing about digital transformation in retail, and how they are impacting businesses, let us also know about the tools and technologies that are being adapted by the business owners. Look at some of them given below:
Machine Learning Advantage
Machine learning helps retailers make data driven decisions, as a part of which, they can track customer shopping habits through data sources such as loyalty programs, CRM data bases, social media activity, consumer demand, loyalty programs as well as market trends. A report conducted by McKinsey proved that U.S. retailers that integrated analytics and data reported experiencing 19% improvement in their operating margins for the past 5 years.
As machine learning works differently as compared to traditional programming, machine learning enables engineers to narrate computers what to do. Machines also have the potential to transform the future inventory systems by generating accurate estimates of products in the store.
Effectiveness of AI
When it comes to delivering superior quality services, Artificial Intelligence is the most sought-after technologies. It helps several companies curb labor costs and create efficient shopping processes. Through AI based algorithms, retailers can tailor their marketing experiences based on search data, buying choices, gender, age and other variables.
Let’s talk about AI – driven Chabot for example. It turns into an online brand associate and respond to customer queries through texts enabling companies to make better sales. Also, when AI is integrated to marketing, retailers will be able to take big data sets and use them to their advantage.
Benefits of a Beacon
Retail digital transformation has enabled retail companies to make use of location-based proximity marketing tool, also known as a Beacon. They are a low-cost wireless device that emit a Bluetooth signal which can be mounted inside retail stores and one can send push notifications about offers to customers through a beacon enabled app.
Beacons are a great way for brands to engage with customers. For example, if your customer is passing buy a Starbucks store, you can send a push notification to them pertaining to the discount available on their favorite drink. These tools help marketing executives of a brand to recognize the loyal customers from the interested ones and they can conduct target-oriented marketing campaigns based on their buyers.
Apart from the above tools, predictive analysis tools, internet of things, and many other interconnected technologies are enabling retailers to recognize, analyze, and communicate data. Retail industry is undergoing a sea change in terms of inventory management, service quality and customer behavior. Where are you on the digital transformation landscape? Share with us on email@example.com.