Why Retailers Should Increase Their Digital Footprint

Not long ago, the retail industry heavily relied on making sales in person and physical stores. However, it is no longer the case, given the outbreak of COVID-19 and the mandatory restrictions that were put in place. Thus, retailers could hope to attain the most profitable source of income in this dystopian-like market condition through online platforms and virtual stores.

Advantages of Implementing Digital Transformation in Retail

Since the pandemic outbreak, retailers have begun to embrace the technology, with around 7.9 million retailers taking their business online in 2021. The most common examples of digital transformation in the retail industry include creating mobile applications, analytics, and location-based services for companies that do not sell products.

The benefits of a digital footprint include:

Better outreach

Social media platforms are another way for companies to make their sales or promote their brands. This fact can be corroborated by most customers who use Facebook to make their orders spend $55 with every order they make. Thus, even unexpected mediums like social media platforms bring in a great deal of money. In addition to this, eCommerce platforms also make it easier for retailers to reach out to both B2B and B2C markets.

Increased revenue

When a retailer makes its products or services available on an online platform, billions of people can become aware of its unique selling proposition or USP. With such a large audience to advertise, a company can drastically increase its sales. This is essentially how retail giants like Amazon could become the most valuable brands in the US, with a net worth of $314.9 billion in 2020.

Enhanced operations

The creation of cloud technologies and automation has also significantly altered the way retailers carry out their business. For example, automation into the production line has decreased the time it takes for products to be made, while cloud platforms contribute towards making workflows more streamlined. In addition to this, certain procurement software has made it possible for businesses to keep an eye on their inventory in real-time.

Unprecedented ease

Finally, the most beneficial aspect of the digital transformation in retail is the convenience that it provides to the customers. For example, stores now have optimized mobile apps, meaning that customers can easily peruse the online store. In the last two quarters of 2021 alone, 79% of smartphone users have made purchases online on retail apps. Thus, customers have shown favor to this aspect of the digital transformation strategy.

Better interaction

As mentioned before, social media apps are one of the more effective ways a company can have a personal bond with its customers. For example, social media campaigns make it possible for businesses to relate to their customers and create content that will improve brand recognition. In addition to this, features like chat-boxes and cookies make it easier for companies to tailor their apps and websites to their preferences.

What Does Digital Transformation in Retail Look Like Now?

The goal behind transforming a retail enterprise involves using technology to improve the functioning of an existing system. By doing so, a company hopes to increase the satisfaction of long-time or more recent customers. Thus, it plays an essential role in customer retention and improving the desirability of a brand.

At present, retailers are investing in technologies that utilize AI, the Internet of Things, Data analytics, and even Virtual Reality to further their digital transformation and the company’s growth in the process. These technologies contribute to digital transformation in the following ways:

Artificial Intelligence

Aspects like the product cycle to customer interaction after making a sale is possible because of artificial intelligence. According to an IBM survey in 2021, 85% of the respondents from around the world state that the introduction of AI will result in a whopping 10% annual growth. It contributes to better customer service, data accumulation to create personalized shopping experiences, virtual trial rooms, and more.

IoT

The use of IoT in the retail industry has made it possible for retailers to manage their inventory and increase customer retention. In addition to this, customers can utilize automated checkouts and payments, and there are talks of even bringing in robots that will deliver goods to customers.

Data Analytics

This is used to track emerging products and predict the number of sales that will take place. In addition to this, it is possible to use this resource to create visual representations of customer preferences. Thus, data analytics plays an irreplaceable role in marketing campaigns.

The results are numerous when a retailer increases its digital footprint. The introduction of technological innovation into any supply chain can only benefit the company and the customers. In fact, retailers across the globe have stated that a digital footprint is no longer an optional business strategy but rather a necessity.