The traditional brick-and-mortar model of retail has been under siege by digitally-enabled online and mobile channels. However, will simply adding digital channels to your existing retail business model help?
Mobile apps drive omni-channel retailing
Bigger and more powerful smartphones are enabling better and faster shopping experiences. Mobile is also emerging as a strong connector of all retail channels, seamlessly linking in-store and digital. The popularity of m-commerce can be linked to:
Mobile-based payment applications on the rise
Mobile payments provide a seamless experience to consumers shopping on their smartphones, and are thus an important feature for retailers to adopt. They are expected to grow to over USD 410 Billion by 2020.
Personalization and location- based marketing gains traction
Personalization holds the key to customer loyalty and retention for retailers today. There are some interesting trends in in-store personalization:
Social media and content marketing molds buying behavior
Social media benefits retailers with increased exposure, traffic and loyal followers, and helps generate leads with reduced marketing expense. Leading platforms such as Facebook, Pinterest, Instagram, Twitter, and YouTube have all aligned with commercial objectives, and their 'buy' buttons enable the impulse buying behavior of consumers.
Reverse showrooming becomes a popular and beneficial trend for retailers
Showrooming (the propensity for customers to browse in-store and buy online) was once seen as an existential threat to brick-and-mortar retailers, but it turns out that the reverse dynamic is more popular.
Business efficiency and intelligence gathering through IoT
The Internet of Things (IoT) enables tracking and collecting data from sensors deployed across the retail value chain, including point of sale, inventory management and supply chain planning. Analytical solutions process the gathered data to derive business insights on parameters such as customer movement, buying behavior and social network trends, and create business strategies to enhance business continuity and efficiency.
Voice recognition and virtual reality revolutionizing retail
Voice-enabled search through Microsoft's Cortana, Apple's Siri, Amazon's Alexa and Google's Assist is quickly changing the way consumers look for retailers' products. Virtual reality is also rapidly gaining force in retail as it allows retailers to transform how customers shop. It not only changes how customers search for and explore products online, but offers complete immersion.
A critical part of the retailer’s success will be his ability to comprehend technology movements and how they will impact business and customers. Retail has already moved out of stores into customers' homes and hands, and may soon move to the fourth dimension in virtual stores. Retailers need to act today to ensure that their business is future-ready with their brand experiences and customer loyalty intact.
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