Tag: Digital Retail

6 Disruptive Forces that are Creating New Challenges and Opportunities for Retailers (Part 2)

Posted on by Omprasad Devadiga

Welcome back to Part 2 of “6 Disruptive Forces that are Creating New Challenges and Opportunities for Retailers.” In Part 1, we explored the 3 disruptives and how they are shaping the future of retail. Now, let’s delve into the remaining three.

4. Escalating Prioritization of Sustainability

Sustainability has become a top priority for consumers, businesses, and policymakers. Retailers are facing increasing pressure to adopt sustainable practices and demonstrate their commitment to environmental and social responsibility. Key trends include:

  • Supply chain transparency: Consumers demand transparency into the supply chains of the products they purchase, ensuring ethical and sustainable sourcing.
  • Decarbonization: Retailers are under pressure to reduce their carbon footprint and transition to renewable energy sources.
  • Human rights & DEI: Ensuring human rights and promoting diversity, equity, and inclusion (DEI) are becoming essential for retailers.
  • Plastic packaging: Reducing plastic waste and promoting sustainable packaging solutions is a growing concern.
  • Circularity: Retailers are exploring circular economy models to minimize waste and extend product lifecycles.
  • Food waste: Reducing food waste throughout the supply chain is a key sustainability challenge.
  • Consumer health: Consumers are increasingly concerned about the health and safety of products, leading to stricter regulations and labeling requirements.
  • Biodiversity: Protecting biodiversity and minimizing the environmental impact of retail operations is essential.
  • Resource intensity: Retailers are under pressure to reduce their consumption of natural resources.

70% of consumers feel companies should drive positive ESG outcomes

Imperatives for Retailers

To address these sustainability challenges, retailers must:

  • Build end-to-end supply chain transparency to ensure ethical and sustainable sourcing.
  • Develop circular processes to minimize waste and extend product lifecycles.
  • Create alliances with peers to share best practices and collaborate on sustainability initiatives.
  • Prioritize material issues, such as plastic reduction and sustainable packaging.
  • Measure and report their environmental and social impact to demonstrate accountability.
  • Educate consumers on how to use and dispose of products sustainably.
  • Optimize stakeholder communications to build trust and transparency.
  • Operationalize their ESG strategy to integrate sustainability into all aspects of their business.
  • Explore alternative suppliers that prioritize sustainability and ethical practices.

5. Rising Political & Economic Uncertainty

The global political and economic landscape is increasingly volatile, creating uncertainty for retailers. Key trends include:

  • Geopolitical conflict: Geopolitical tensions and conflicts can disrupt supply chains and increase costs.
  • Rising trade tensions: Trade wars and tariffs can impact the cost of goods and create uncertainty for businesses.
  • Uneven vaccinations: The global distribution of vaccines and the emergence of new variants can impact economic recovery and consumer confidence.
  • Inflation and energy costs: Rising inflation and energy costs can increase operating costs for retailers.
  • Debt and interest rates: High debt levels and rising interest rates can create financial challenges for businesses.
  • Supply chain disruption: Disruptions in supply chains due to geopolitical events, natural disasters, or other factors can impact product availability and costs.
  • Unemployment: Rising unemployment can reduce consumer spending and create economic uncertainty.
  • Cybersecurity breaches: The risk of cybersecurity breaches is increasing, posing a threat to businesses and consumers.
  • Political polarization: Political polarization can create a challenging environment for businesses and make it difficult to navigate regulatory changes.

60% of consumers are worried that war will spread globally

Imperatives for Retailers

To mitigate these risks, retailers must:

  • Build local supplier networks to reduce reliance on global supply chains and mitigate the impact of geopolitical events.
  • Hedge for cost spikes by implementing strategies to manage price fluctuations and protect profit margins.
  • Diversify global logistics to reduce the risk of disruptions and ensure a reliable supply of products.
  • Assess geopolitical scenarios to anticipate potential risks and develop contingency plans.
  • Impose price guarantees to maintain customer loyalty and mitigate the impact of rising costs.
  • Simplify in-store assortments to focus on essential products and reduce inventory costs.
  • Reduce fossil energy reliance to mitigate the impact of rising energy costs and support sustainability goals.
  • Tighten data encryption to protect sensitive customer data and mitigate the risk of cybersecurity breaches.
  • Restructure debt burden to improve financial stability and reduce the impact of rising interest rates.

6. Blurring Lines Between Sectors and Channels

The boundaries between sectors and channels are blurring, creating new opportunities for retailers to expand their offerings and reach new customers. Key trends include:

  • Consumers as products: Retailers are increasingly leveraging customer data to provide personalized experiences and sell targeted products and services.
  • From product to service: Retailers are transitioning from selling products to providing services, such as subscription models and personalized recommendations.
  • Retailtainment: Retailers are combining retail with entertainment to create immersive and engaging experiences.
  • Immersive experiences: Retailers are leveraging technologies like augmented reality (AR) and virtual reality (VR) to create immersive shopping experiences.
  • End-to-end engagement: Retailers are striving to provide a seamless customer experience across all channels, from online to in-store.
  • Bundled solutions: Retailers are offering bundled solutions that combine products and services to meet the needs of customers.
  • Self-healthcare: Retailers are expanding into self-healthcare products and services, such as wellness products and virtual consultations.
  • Gamification: Retailers are incorporating gamification elements into their shopping experiences to engage customers and drive sales.
  • Selling data: Retailers are exploring new opportunities to monetize customer data, such as targeted advertising and market research.

44% of consumers intend to spend more on experiences

Imperatives for Retailers

To capitalize on these trends, retailers must:

  • Expand the scope of their ecosystem to include a wider range of products and services.
  • Increase the range of services they offer to meet the evolving needs of customers.
  • Group products with services to create bundled solutions and increase customer value.
  • Explore sector adjacencies to identify new growth opportunities.
  • Leverage alternative models such as subscription services and rental options.
  • Identify B2B value pools to expand their customer base and revenue streams.
  • Build a retail media presence to reach new customers and monetize their audience.
  • Develop digital-first offerings to meet the needs of digital-savvy consumers.
  • Create in-store experiences that are engaging and memorable.

The retail industry is facing a complex and challenging landscape, shaped by evolving consumer behaviors, rapidly changing technologies, increasing tax & regulatory complexity, escalating sustainability priorities, rising political & economic uncertainty, and blurring lines between sectors and channels. Retailers that can successfully navigate these disruptive forces will be well-positioned for long-term success. By understanding these trends and implementing appropriate strategies, retailers can adapt to the changing landscape and thrive in the future.

How Customer-Centricity Fuels Success in the Omni-Channel Retail Landscape

Posted on by Omprasad Devadiga

Welcome to the future of retail, where shopping isn’t just an activity—it’s an experience. In our hyper-connected world, customers hop effortlessly between online stores, physical shops, mobile apps, and social media, expecting a smooth and personalised journey at every turn. As a leading Unified Software company, ETP Group is here to show you how to build a customer-centric business that shines in this omni-channel retail universe.

Imagine walking into a store where everyone knows your name, your favourite products, and even your latest purchases. That’s customer-centricity. It’s all about making your customers feel special, understood, and valued. In an omni-channel world, this means creating a unified experience across every touchpoint. Whether your customers are browsing your website, shopping in-store, or scrolling through your app, the experience should be seamless, engaging, and tailored just for them.

Why does providing an omni-channel experience matter?

So, why should offering an omni-channel customer experience matter to you? Before we dive in, let’s check out some eye-opening statistics that underscore the importance of an omnichannel approach.

  • Businesses with omnichannel strategies see 91% higher year-over-year growth.
  • A robust omni-channel CRM strategy retains 89% of its customers.
  • 71% of shoppers use smartphones for in-store research.
  • Omni-channel customers spend 10% more online and 4% more in-store.

These stats clearly show that omnichannel customers are more valuable, driving better revenue and business growth.

How can omni-channel retail experiences help you create more valuable customers?

Enhanced Personal Experience: An omnichannel shopping experience allows customers to interact with your brand and shop through their preferred channels. They can compare and finalise products online and purchase them in-store. This level of hyper-personalisation and seamless transition between channels leads to a superior customer experience and higher satisfaction.

Boosted Customer Loyalty: When customers enjoy a stellar experience, they are more likely to stick with your brand and continue shopping with you. This increases customer loyalty and retention. Since loyal customers spend three to five times more than other customers, offering omnichannel experiences can significantly boost your revenue.

Step-by-step Process to Create an Omni-Channel Retail Experience for Your Customers

Every omnichannel customer engagement strategy should aim to provide a consistent experience across all channels. This requires identifying and integrating all customer touchpoints to deliver a seamless, unified experience.

If this seems challenging, follow this step-by-step process to create an effective omnichannel experience for your customers.

1. Research Your Customers and Create Buyer Personas

To create an effective omnichannel experience, understand what your customers need and their preferred channels. Conduct thorough research to identify who your customers are, which channels they use, and how they interact with your brand.

For example, Gen Z and millennials may favor online channels like social media, while older customers might prefer physical stores. Balance your online and offline channels based on these insights.

Then, compile this information to create detailed buyer personas. These personas help streamline your target audience, customer segments, and marketing campaigns, allowing you to run behaviorally targeted ads that are twice as effective as regular ads.

2. Identify Customer Touchpoints and Map Customer Journey

To optimise the experience across channels, identify where your customers connect with your brand—be it organic content, search engine ads, mobile apps, social media, third-party marketplaces, offline ads, in-store, and more.

A common misconception is that more touchpoints equal more sales. While multiple touchpoints can attract more customers, it’s not necessary to be present on every channel. Instead, focus on mastering a few key channels.

After identifying major touchpoints, map out your customers’ purchase journeys. Keep in mind that 92% of first-time visitors to a retailer’s website aren’t there to buy. Consumers often take a zig-zag journey, moving between channels and touchpoints. By mapping these journeys, you can spot opportunities to deliver seamless omni-channel retail experiences and better engage your customers.

3. Leverage the Right Tools and Technologies

With the rise of technology, offering an omni-channel CRM is now more accessible. However, the key is to choose the right tools that ensure seamless data flow between channels and touchpoints.

Essential tools for an omni-channel retail experience include:

  • Live Help Tools such as Chatbots and live chat solutions
  • Customer Relationship Management (CRM) tools to collect and unify customer data
  • Operations Management Solutions for omni-channel inventory management and order management
  • Social Media Management Tools to handle interactions across social channels
  • Helpdesk Support Platforms to provide high-quality, multichannel support
  • Ad Management Tools to manage advertisements across various channels

4. Recognise Elements that Impact Omni-Channel CRM

Many factors influence customer experience. For website visitors, ease of navigation, loading time, and content are crucial. In-store, product availability, and service quality matter. Each channel has unique elements that affect the customer experience.

As an omnichannel brand, identify and optimise these elements. Monitor customer behavior closely. If many customers abandon their cart at checkout, revamp the checkout page. If store visitors aren’t making purchases, consider hiring new sales staff.

5. Collect and Analyse Customer Feedback

Mapping your customers’ journey and monitoring their behavior provides insights into their shopping experience. However, to truly understand their thoughts and feelings, collecting feedback at every touchpoint is essential.

There are various methods to gather customer feedback. Prompt customers to complete feedback forms after purchases, send follow-up emails and social media messages requesting their input and use polls or surveys to gather additional insights.

6. Cultivating a Customer-Centric Culture

The heart of a customer-centric business lies in its people. It’s about fostering a culture where everyone is committed to delighting the customer. This involves training your team to anticipate and meet customer needs, empowering them to go above and beyond in service, and constantly seeking ways to improve. Leadership plays a key role here, setting clear goals, encouraging innovation, and celebrating customer-focused achievements.

Wrapping It Up

In today’s omni-channel retail world, building a customer-centric business is a must. By embracing omni-channel, harnessing the power of data, integrating cutting-edge technology, and nurturing a customer-first culture, you can create memorable, personalised experiences that keep customers coming back.

At ETP Group, we’re excited to help you navigate this dynamic landscape and put your customers at the center of your universe. Contact us today!

Unlocking Success: The Crucial Role of Omni-Channel Retailing for Multi-Store Retailers

Posted on by Omprasad Devadiga

Consumer expectations have undergone a significant shift, with a focus on convenience, connected shopping experiences, and personalization. Discover how to leverage your stores to elevate and distinguish your customer experience.

Omni-channel retailers now regard their stores as crucial assets worthy of investment. Last year, offline sales outpaced e-commerce for the first time, with physical stores growing at 18.5 percent compared to e-commerce’s 14 percent growth. While e-commerce is projected to surpass physical stores in future growth, the spotlight remains on stores. For most omni-channel retailers, this e-commerce growth implies increased investments in physical retail. Stores play a pivotal role in creating and satisfying customer demand, even if transactions eventually occur online.

Stores enhance brands by providing a tactile, human-centric experience that is impossible to replicate online. Store staff build trusted relationships with customers through advice, service, support and sales. They are often better at acquiring customers and stimulating repeat purchases than digital channels..

Furthermore, stores support e-commerce by positioning inventory near customers—the source of demand. Practices like click and collect, ship from store, and in-store returns have become standard for fulfilling online orders. Without a store, many online orders would not happen, and would be unprofitable. Thus, store-based retail is not going away, in-fact quite the opposite – its importance in the human interaction and social sharing aspect of retail is only becoming more sacred.

For multi-store retailers, the concept of stores is evolving from mere storage to spaces of exploration. The quality of this exploration is now more critical than ever. However, many retailers struggle to meet customers’ omni-channel demands and lack the infrastructure for modern shopping journeys expected by digitally-savvy post-pandemic consumers. They rely on disjointed, siloed backend systems that are cumbersome, inefficient, and costly to integrate. While they’d implemented quick fixes during the pandemic, they now require a comprehensive, long-term solution for unified data across all channels. The pressure is mounting on them to implement change rapidly and create the new “phygital” customer experiences demanded by the business.

So, what are the new capabilities retailers need to modernize their customer experience for digital-first retailing?

  1. Stores that Amplify the Digital Experience: The rise of live online customer experiences extends beyond social media and chat assistants to virtual shopping appointments. Retailers leverage store staff expertise to boost digital sales and service by providing in-store teams tools to connect with shoppers digitally. Unified commerce solutions automate the end-to-end process, from customer communications to seamless sales transactions and quick deliveries.
  2. Digital Convenience in Stores: The POS used to be the epicentre of the store technology experience. But today, consumers expect unlimited access to information and functionality to inform their purchasing decisions, and demand digital convenience inside the store. Retailers empower customers by integrating digital services, enabling loyalty point lookup, exploring product information, and creating digital wishlists in stores. Digital screens for instant browsing and shopping provide ‘endless aisle’ capabilities for browsing and ordering from the entire inventory.
  3. Self-checkout evolution into Self-service: Retailers modernize the checkout experience for customer convenience. They’re putting customers in control with fast and flexible self-guided assistance, mobile point of sale, and contactless payments anywhere in-store, out in the warehouse, or at trade shows and pop-up stores. Self-serve kiosks are practical for larger stores; grocery and convenience store retailers are taking advantage of new self-service software for touchscreen terminals, creating fast and memorable experiences.
  4. Endless Aisle for Seamless Ordering: Consumers choose retailers based on the ease and flexibility of the end-to-end experience. Retailers focus on the entire customer journey, implementing a ‘buy anywhere, fulfill anywhere’ strategy and a central unified commerce platform. This provides real-time visibility of inventory, orders, and customer data across the business. That means customers can shop for products of their choice, whenever they feel like it, using their most convenient channel. Endless aisle access to inventory lets customers order any product and get it delivered to any address.
  5. Flexible Omni-channel Fulfilment: With ecommerce sales returning to pre-pandemic growth levels, services such as ship-from-store, click-and-collect, endless aisle and returns anywhere are all just table stakes today. Retailers are prioritising capabilities that help them to launch and scale omni-channel experiences faster by improving store fulfilment efficiency and enhancing the store pick-up experience. They create hybrid stores supporting online sales while meeting customers’ expectations for fast pick-up and delivery. Ship-from-store capabilities not only enable ecommerce orders to be shipped from stores, but stores can also ship orders placed in other stores. And with a unified view of inventory across all stores and DCs they can quickly see where inventory is located, and choose the fastest route to fulfil orders.
  6. Unified Channels Enhance Personalization: As buying journeys start online and store visits become more planned, customer expectations for a seamless ‘one brand’ experience rise. However, many retailers have channel silos – which means any interaction or activity that the customer had with them online is not available to the customer or staff within the store. Retailers deliver personalized experiences using AI and intelligence across online and offline channels, delivering timely and relevant communications, recommendations, offers, and rewards. This extends into other communications such as e-receipts and shipping notifications.
  7. Unified Employee Experiences: A great customer experience depends on a great employee experience. Retailers invest in employee efficiency and enablement, equipping in-store teams with relevant customer intelligence like loyalty points, wishlists, and sales histories – to equip them to add more value to their customer interactions. AI technology offers personalized upselling recommendations during click-and-collect pickups. Localized pricing ensures up-to-date, competitive pricing, empowering teams to make informed, on-the-spot decisions.

In conclusion, there’s a colossal shift taking place right now in how multi-store retailers plan, build and deliver their in-store customer experience. The prime driver behind this upheaval is the boom in ecommerce that is creating new online shopping habits and reshaping consumers’ expectations of in-store experiences. The synergy between the online and offline embodiment of a brand, understanding the customer’s path to purchase and shopping history have all become fundamental to creating lifetime customer value.

ETP Group has a proven and reference-able track-record of success supporting multi-store retailers at the forefront of omni-channel innovation, with a robust product capability and experience, and the right people and processes to move fast.