Retail digital transformation: customer is The channel

With the advent of digital technologies, many predicted the end of the retail sector, with physical stores closing everywhere. 
The reality is quite the opposite, with e-commerce sales worldwide settling at around (only) 13% of total retail sales. This confirms the combination between e-commerce and point of sale, for a true omni-channel experience, with continuous interaction between online and in-store:

  • E-commerce as a sales platform serving physical stores, supporting customers and store assistants
  • Point of sale as an e-commerce service hub and delivery center 

In this context, the real challenge for the digital transformation of retail is to improve the drive to store and increase e-commerce conversions, with an advanced customer experience capable of countering competitors present only on the digital channel, primarily the marketplace.
 

“Sixty-seven percent of Italians have an omni-channel purchase path” (Polimi Observatory 2018 data)

Creating the best customer experience for Everywhere Shoppers requires Retailers to focus on the digital value chain and the importance of actionable data, taking steps to:

  • Collect data from all touchpoints and incorporate them to create a single customer view, in a path of data collection and analysis, operating according to a CRM strategy and supported by Customer Engagement / Data Platforms or Customer Data Hubs.
  • Transform data into insights related to customer behaviors, thanks to Customer and Business Intelligence solutions able to analyze large amounts of data and perform predictive analysis and profiling, using techniques enhanced by Artificial Intelligence (AI) and Machine learning that improve predictive models and allow improvements in marketing automation logic.
  • Implement marketing, sales and aftersales strategies and actions that improve customer engagement and loyalty, thanks to omni-channel commerce solutions, and implement integrated online and in-store strategies focused on customization.

Retail trends: customization, mobile and omni-channel

If Shopper Personalization is at the top of the list of investment priorities for big Retailers (Forrester 2019), thanks to the analysis of available data, creating personalized customer experiences is essential, although this requires compliance with data security and GDPR standards.

The second trend in retail CX is once again mobile, which enhances the in-store experience of the customer and the shopper assistant, who thus has access to real-time information about the customer to create a personalized and meaningful relationship.

The third Retailer driver for 2019 is the search for a truly omnichannel experience: delivering the product to the customer in the shortest possible time and in the location of their choice. 
A supply chain revolution and access to the omni-channel inventory by the consumer allow all possible variations: reserve in store, BOPIS, BORIS, click & collect, return in store, etc., thus including the omni-channel management of returns and exchanges and the management of transfers between points of sale. 

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