Retail Digital Transformation: Best Practices & Top Trends

Retail is only as successful as it is today with the power of technology! So, bridge the gap between your store and consumer, and reach your goals with these popular trends.

Every business has undergone, or needs to undergo, an intense digital transformation to become more productive, motivate employees, and increase value and financial prosperity. A digital transformation can also contribute to a better business strategy, a positive culture, improved internal and external communications, enhanced customer service, and, most importantly, adapting to the market's demands and the changes that come with time.

Retail digital transformation encompasses numerous tech solutions and practices that can significantly transform your B2C and B2B sales online. These emerging technologies can often include cloud computing, big data, RFID, and other related aspects. This digital transformation involves the modernization of stores, which can be physical or extend to various types.

In a report by Gartner, they stated that "note that for the foreseeable future, changes in consumer behavior, which impact and are impacted by all the trends we've identified, will have a greater impact on value in retail than any other single factor. This actionable research can identify the top trends that retailers must be in tune with to provide excellent customer experiences and, in turn, solidify customer trust."

New trends

Trends are constantly evolving and changing; however, some trends persist consistently and shape both the shopping and business experiences.

1. Big data is the key to e-commerce and offline retail advancements, as well as fraud detection, personalization, and analytics.

2. Omni-channels are great since customers shift from online to offline, looking for the store's website and new deals. Stores need a website, social media presence, email marketing, chatbots, and customer support.

3. Emerging technologies, such as artificial intelligence (AI) and machine learning (ML), are helping stores with inventory management, shelf optimization, customer satisfaction, and the development of sustainable collaborative ecosystems.

4. Touchless interactions, such as payments and contact-free shopping, are increasingly on the rise.

5. Algorithm merchandising optimization can enable retailers to determine sales margins and offer more customer-based services, shifting costs.

6. In-store automation is enhancing the customer experience and reducing financial costs.

According to research by McKinsey, "the pandemic has increased demand for digital technology in the retail industry. The report states that the growth of e-commerce in the U.S., estimated at 24% by 2024, jumped from 17% to 33% within two months. Hence, digital technology is imperative for retailers to transform their business model in the future."

A constant process, digital retail transformation is continually evolving to incorporate more tools, techniques, and strategies that cater to current times and customers. Many stores, especially brick-and-mortar ones, can only remain relevant for a short time by adapting to and adopting new technological advancements. COVID-19 has impacted the retail industry worldwide, and new technologies have emerged to provide customers with the personalized experiences they desire. Marketing analytics helps us understand how everything interacts to inform decisions on how your company may want to invest moving forward.

Re-prioritizing how your team spends its time and the resources, channels, and efforts you invest in are critical steps to achieving marketing success and improving sales. At DuartePino, our analytics experts analyze your business's data to evaluate better the performance of your marketing, content, and products, and use your analytics insights to reach the right people. Contact us to learn what our trust advisors can do for you.