Everything is going online now, from communication to making business, working, and shopping. The advancement of technologies enables businesses to become faster, bigger, broaden abilities and attract more customers. The retail industry has been facing the outcomes of digitalization probably the most. Still, brick-and-mortar shops are having their benefits and people use them more than e-commerce websites. The other side of this issue is an extremely tough competition.
To get more clients, businesses have to adjust to the changing consumer habits and for that purpose use the advantages of digital technology. However, the good news is coming – there is the solution and it is the digital transformation in the retail and consumer industry. Yet, it may turn out to be a real challenge, in this article SapientPro development team has outlined the key points you need to know if you want to put your business to a higher level.
What is digital transformation
Digitalization takes on a very specific sense when it comes to retail. It can be defined as a process of implementing modern technology to ensure success. This reflects the need to adjust the working prinсiples of retail in order to accommodate the constant change in the way customers buy. This transformation includes how stores use digital technology to revolutionize the experience in-store, as well as reshaping everything from finding a local physical shop to paying for goods without staying in long queues.
In fact, digital transformation determines how retailers interact with their consumers. It covers how businesses engage with their customers, serving them and selling to them while taking into account their views and experiences in order to reshape both the organization and marketing.
A retail business’s front-end part focuses extensively on customer acquisition, retention, SEO, site interaction driving, cross-channel communication. While the back-end works on the efficient running and development of the eCommerce site, the ERP, CRM, web, software, and POS, not to mention working with emerging Machine Learning and Artificial Intelligence tools to help optimize the front-end marketing behavior.
You can find more information about how chatbots, AI and ML are implemented in eCommerce and see the real examples in our article.
Why digital transformation matters
Digital transformation is obviously crucial to retailers ‘ success as it guarantees that they remain competitive in an ever-changing industry.
Recent researches show that retailers are very concerned about digital transformation, with 66% of respondents ranking it as “crucial.” The study also showed that retailers are making progress on their digital transformation plans, with “well on their way” to digital transformation reaching almost half of respondents.
The main purpose of digital transformation is to boost customer service and provide a competitive advantage in attracting and retaining consumers. The research found that customers are driving the need for digital transformation, with 51% of respondents reporting that their primary driver for transition is the customer. This central position ensures that the process must be client-centered across both the front-end and back-end roles in order to meet the demands of increasingly complex and challenging users.