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The future of retail is a hot topic for retailers, and the concept is constantly evolving. Over the course of three blogs, we’ll look at where retail is headed, starting with the latest trend of the unified experience.
Over two days in the week of May 31, 2017, I joined RetailNext in Napa for lively discussions with innovative retail leaders and retail industry experts on how to engage with shoppers in more timely, relevant, and personalized ways. This forum is my favorite opportunity to get into more details with the RetailNext team and to learn more about the incredible innovations they are creating, along with their technology partners. The discussions on how to keep moving and be relevant with technology are intriguing and have inspired me to write this blog post. As a technology partner to leading retailers, MapR shares similar views on the future of retail.
Digitalization is changing everything and every industry, not just retail. As connected consumers, we are used to convenience and speed at the push of a button. We spread information very quickly through various social channels. To keep up with consumers and be able to make decisions quickly, retailers need to harness the power of data across all channels to compete on experience, service, and urgency. There’s no other way around it.
If we think back to the time when we used to go to the mall to do things with our families and friends, stores were meeting our needs with low prices and fun shopping experiences. However, that shopping experience has been redefined. Today’s shoppers are more social, yet efficient, and desire a more authentic connection to a brand. If you can capture how customers feel and engage with the brand or the store, you will have the knowledge to tailor shopping experiences that resonate with the individual or community. That can lead to creating a local feel in stores, specific to the neighborhood, and not just a generic experience.
The overall goal is to optimize the conversion funnel, at scale. There’s only one customer experience; it’s not about online or offline or different experiences. Thus, it is time to look at how to better integrate data analytics with operational processes for providing a seamless experience.
Embrace the transformation and the bigger opportunity by taking advantage of digital advances within physical stores, along with online engagement. People still like shopping in stores, but their expectations have changed. Customers are asking for a better and easier experience. Some customers see future stores equipped with touchpads from which they can select items and have everything be at the counter for an efficient checkout. Customers also expect retail associates to be experts on the stores and products they represent. The retail sector is ready for transformation, and retail leaders should act now.
There are several digital imperatives essential for retail leaders to succeed:
While the data growth generated by an increasing number of sources presents tremendous opportunities, it also presents significant technical challenges. Beyond just the growing volume and diversity of data, retailers are challenged with operationalizing their data. How do retailers effectively integrate data into their operations?
A big retailer’s approach is a great example of data platforms used successfully in retail settings. They began their transformation in 2012 with their first data platform to make data work to their advantage. The goal is to optimize the shopping experience of their customers, whether in the store, browsing a website, or using a mobile device when they are in motion. The solution has involved redesigning global websites and building intelligent applications that personalize customer experience while increasing efficiency. This requires a single, scalable system that gives internal users real-time access to data collected from a wide range of sources and centralized for more effective use. That’s where new data platforms and integrated NoSQL technologies come in.
It’s good to see that innovative retail leaders are now realizing the fruits of their labor with data management and other technologies. If retailers want to stay relevant and stay in business, they must change their business models to center around the customer. The key is to know what technologies are available to create the most effective customer experience.
The next installment in our Future of Retail blog series will explore new technologies to connect the experience between online shopping and stores.
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