Why Does the Retail Industry Need to Embrace Digital Transformation?

Why Does the Retail Industry Need to Embrace
Digital Transformation?

“Digital transformation” or “digitalization” in the retail sector is a
reference to disruption, the introduction of new services, and enhanced operation
of the current system through the use of technology.
Since the customer experience is constantly evolving, retailers must evolve and
adapt too. With the shift to personalized shopping, retailers need to look beyond
one particular technology to come up with new and unique business models.
Mobile apps, location-based services as well as large-scale data analysis have led
to major changes in the retail sector. This article explains the importance of digital
transformation for Retail.

What do you think digital transformation means in
retail?

Retailers need to think beyond minor improvements and rethink processes to
provide a seamless experience with technology. Digital transformation isn’t only
about innovation, agility data intelligence, customer-centricity, and new value
propositions, but additionally, it’s the streamlining of processes cutting costs and
increasing efficiency throughout the transactional process.

Today, more than ever retailers must rethink all aspects that they conduct
business. From sourcing, pricing, planning inventory training for employees to
managing customer experience, retailers need to come up with new methods to
boost revenue and develop new business models that are innovative.
McKinsey claims that COVID-19 has helped accelerate the adoption of digital
technology in the retail sector. In the report the e-commerce market within the
The United States which was supposed to increase to 24 percent by 2024 has
increased from 17 percent to 33% only two months after the lockdown.
“Contactless retail that leverages digital transformation technologies such as
Artificial Intelligence (AI), Internet of Things (IoT), and Virtual Reality (VR)
increases customers’ confidence to shop during the COVID-19
pandemic” GlobalData reports. GlobalData. As consumer behavior changes and
patterns of consumption, retail digital transformation patterns will only remain in
the near future.

Learn more about contactless services are the New Normal in Retail
In simple terms, the digital revolution in retail will increase customer satisfaction
and retention by offering services and products in line with their needs.

What are the advantages of digital transformations in
the retail sector?

Although digital transformation isn’t simply a thoughtful strategy that can yield the
desired results. It also has many advantages, including:

1. Operation improvements

Utilizing cloud technology helps to improve the operations of the business and
allows the staff at retail to respond quickly to customer requests and improve customer support. Real-time data availability can help predict demand ahead of
time and also stock products ahead of time.

2. Convenience

AI tools allow customers to shop without a cashier and allow retailers to market their goods in stores, along with websites as well as mobile applications. So, the AI-
powered automation of the retail process, such as finding items, tracking inventory, replenishing stock, recognizing preferences of customers, etc. can enhance
customer satisfaction.

3. Improved communication

Retailers can build a stronger connection and increase their communication with
their customers by using social media mobile apps, websites chatbots, chatbots,
and more.

4. Improved customer experience

Digital transformation impacts customer experience and enhances their
experience. Tools for technology can boost the efficiency of employees and help
make services more efficient. Customers get not only high-quality services but can
also guarantee a pleasant purchasing experience. Since digital transformation is
centered around the customer it can also help your company grow and stay ahead
of the market.

5. Increase revenue

Digital transformation provides retailers with an opportunity to reach a larger of
customers and increase their revenue streams.

What makes the digital transformation of retail more
important now?

The shift to online shopping is not new however, the COVID-19 epidemic has just
accelerated it. Within the United States alone, approximately 600 billion dollars in
online sales made up 56% of the overall growth in retail sales in the year 2019.
Here are a few other reasons businesses need to make digital transformation a
priority and adjust their customer journeys to be able to respond efficiently.

1. Life post-COVID will see an increase in online shopping

With a growing emphasis on privacy and social distancing, There will be a variety of
changes to consumer preferences as well as saving habits as well as spending
habits, and purchasing channels. Leaders of businesses must prepare for their
digital transformation to profit in the post-COVID time.

The recovery and survival of the business will be dependent on the digital channels in the phase of social distancing. Companies should look into creating digital channels, and enhancing the presence of their business, as well as investing in data and upgrading the
models that meet the demands of customers. Business leaders should also
combine pandemic-related outbreak models with the demands of supply chains and
enable employees to work remotely.

2. Transparency in supply chain transparency

The pandemic has affected supply networks around the world and caused many
retailers to not be able to meet the demands of customers for their goods. Thus,
retailers will need to be more transparent with their inventory and plan for their
offline and online customer experiences.

3. The retailers with a presence on the internet will be more prosperous

With the current pandemic, the majority of people are inside and only buying
important items. Thus, retailers with a digital presence are ahead of their
competitors. These retailers are making the most of the situation caused by the
pandemic and capturing market share by introducing new products and acquisition
of customers. Businesses must keep up their digital transformation plans instead
of shutting down their businesses and declaring bankruptcy.

4. Customers are cheering on their favorite brand

The majority of people are affected by social distancing, personal hygiene,
waiting to enter stores, and many other limitations. Therefore, consumers are
eagerly awaiting their preferred brands and expect them to offer better service while
making sure they are taking precautions to protect themselves. This drives the
demand for the digitalization of retail more than ever before.

Top 3 digital retail transformation trends to adopt

Digital transformation in retail has already begun and a lot of companies have
profited from it. But, it isn’t a one-time event because technology is constantly
evolving and retailers must stay on top of the latest trends. We’ve shared some of
the most recent trends to keep an eye on.

1. Augmented Reality (AR)

AR-related technologies and tools allow customers to try and experience things at the
convenience of their homes. For example, Toyota’s Augmented Reality shopping
experience allows customers to test 10 vehicles before settling on the best one.
Another example that is a good one is IKEA. They allow customers to select
furniture with their app. Users just need to point their camera at the correct spot at
home, and the app will show you options that will complement your style.

2. Mobile applications

Mobile apps let you connect with your customers in a way that is more
effective. Customers can get information on the product review, and even read the
reviews. Customers can also contact support in case they have any problems.
Mobile apps are also great for development because they let you include new
features or enhance the services you offer.
Read more about 3 Must-Have Mobile Apps for Retail features to boost Your
Business

3. Virtual Reality (VR)

Virtual Reality technology has immense potential for development and growth in
the retail sector. VR will enhance customer experiences and increase it to a higher
level by allowing customers to look around homes vehicles, cars, and other
vehicles. and without ever stepping into. The retailer Walmart uses VR headsets in
more than 4500 of its stores, for organizing big shopping events such as Black

Friday. VR training has improved the confidence and efficiency of Walmart’s
employees and improved their retention rate.

Summing up

It is said that having a physical store won’t help you anymore. You need to
incorporate the digital transformation of an offline store into your website as well as
your social media profiles.
Instead of spending hours looking for solutions, We can assist you in saving time
and cash. Contact us with your requirements for retail businesses and we’ll help
you come up with the most efficient digital transformation strategies that work to
your needs.