by Spencer Nguyen • March 2, 2022
There is no doubt that eCommerce is a staple in the economy post-COVID, which is why omnichannel retail will continue to be a competitive advantage moving forward. Over the past decade, online shopping channels have transitioned from an attractive option to a requirement — but this is just the beginning. You can effectively collect, integrate, and act on customer data through greater business intelligence by implementing digital technologies into your overall retail strategy. The goal is to innovate the customer experience and improve business operations. However, the benefits of retail digital transformation are vast.
Some of the key drivers of digital transformation in retail stores are greater competitiveness, improved efficiency, strengthened customer relationships, and increased revenue. Let’s dive deeper into the top ten benefits of retail digital transformation.
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Upselling remains one of the top benefits of retail digital transformation, as it’s an easy way to boost sales instantly. With the help of digital tools, you can increase revenue with virtually no extra work. For example, suppose a customer has an item in their cart. In that case, you can display “similar” or “recommended” items that are complementary to that product, which is something you commonly see on Amazon.
Data shows that upselling can increase revenue by 10% to 30%. Plus, this approach is 68% more affordable than acquiring a new customer. Thanks to the internet of things (IoT) and application programming interfaces (APIs), upselling and cross-selling opportunities are much more accessible.
If you have not yet implemented the power of data analytics, now is the time. The more data you collect, the better customer experience can be. You can provide an optimal, data-driven experience to drive sales.
Artificial intelligence (AI) and machine learning will allow you to better understand what your customers are viewing, buying together, and other vital pieces of information. You can then use this data on customer preferences to increase conversion rates.
Technology is also helping those in the retail industry obtain a birds-eye view by offering unified dashboards and merging databases.
Dive deeper into data aggregation for retailers here.
When considering the benefits of retail digital transformation, customer-centric service is at the top of the list. If you do not make this a top priority, you’ll see more abandoned carts than you’d like. The last thing you want is to create a frustrating buyer journey. Research shows that abandoned carts cost online businesses around 2 to 4 trillion per year. Since the global cart abandonment rate is 75.6%, experts say a rate between 30% to 40% is remarkable.
Although this is a pressing issue, 6 in 10 merchants aren’t even aware of their abandonment rate. This lack of access to customer insights hinders positive experiences. How can you address an issue if you’re not aware there’s an issue? Having access to this data is critical to creating a more seamless experience.
Digital shoppers expect a smooth, self-service buyer experience, which is why automation is key. Although it’s essential to offer excellent customer service when needed, buyers often want to move through the buyer journey with the fewest service interactions possible.
One major way that new technologies are improving communication is chatbots. This AI application can provide high-level customer service 24/7 across several channels. Today, businesses can use chatbots to answer questions, provide personalized service, and more. For example, H&M has developed chatbots that provide suggestions based on shoppers’ preferences and shopping profiles.
You can significantly improve marketing campaigns when you know what your customers value. You can then implement specific sales tactics by gaining access to real-time data that shows what your customers or most interested in. For example, you can showcase testimonials or offer discount codes for specific products.
For example, you can implement APIs to enhance the benefits of retail digital transformation. This strategy allows you to integrate POS systems in your DreamFactory API workflows so you can connect to marketing systems and CRM. This approach opens up so many doors.
The need to adapt has been undeniable throughout the pandemic. When you can adapt to change, you can pivot accordingly. In most cases, the ability to do so depends on where your company is on the digital transformation curve. The more you invest in the benefits of retail digital transformation, the more agile you’ll be in today’s dynamic, changing market.
You’re no longer limited to physical stores and local customers, as 76% of U.S. adults shop online. Being a digitally advanced business means you can capitalize on these shoppers, accessing a broader target market. Customers can access your store from anywhere using mobile devices, so leverage that channel.
Thanks to APIs, you can be more accessible than ever with services that offer personalized recommendations, fulfillment through delivery partners, online ordering, in-store pickup, and much more.
Empowered employees will have the confidence they need to perform to the best of their ability. Everyone wins when you equip your team with the tools, skills, and knowledge to do their jobs as efficiently as possible. For example, digital tools can provide insight into customer demographics and behaviors, allowing employees to provide better recommendations, upsell effectively, and more. APIs allow you to connect teams faster, encouraging collaboration, innovation, and greater employee morale.
Greater automation can make or break a company in 2022. Automating processes reduces human effort, operational costs, manual mistakes, and processing times. For example, automating product categorization, supply chain and inventory management, billing, pricing, and other operations will help support the growth of your business.
Here is a perfect example of how important it is to automate manual processes. DreamFactory enabled communication between the shop floor, a backend MySQL database, and a proprietary eCommerce portal. This case study shows how easy it can be to experience the benefits of retail digital transformation.
You can achieve a higher ROI by prioritizing data-driven decision-making and greater operational visibility across channels. Greater integration will be key here, beginning with an ERP system. Taking this step will ensure a more holistic view of everything from inventory to customer service, purchases to returns, ensuring you achieve the benefits of retail digital transformation that are most important to your business.
There is no denying the benefits of retail digital transformation, so what’s the biggest barrier? According to a survey among those in the retail sector, 76% said the complexity of integration is the biggest challenge, followed by availability to talented staff (75%) and the time necessary to achieve benefits (75%).
Ready to experience the benefits of retail digital transformation? DreamFactory works with many logistics providers and retail firms to deliver powerful solutions. Schedule a demo to speak with our integration experts about your digital transformation strategy and retail business or start your free trial!
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