The Changing Face of Retail: Moving to a truly Digital World

Part 3 – Online Strategies

Following on from my last article looking at the issues surrounding customer experience and the importance of embracing a digital culture, this week I conclude our three-part series exploring ‘the changing face of retail’, focusing on omni-channel retailing and the challenges surrounding Online Strategies.

15 June: the dawn of a new day

For the first time since March, we have had a full weeks’ worth of trading from non-essential shops in England, with customers getting the first glimpse into the ‘new normal’ of retail. Last Monday, long queues formed outside the nation’s favourite outlets – including Primark’s flagship store in Birmingham – as consumers emerged from three months of lockdown to enjoy the physical shopping experience once more.

According to Springboard – Footfall figures show a 46% rise in people on England’s high streets compared with last week (W/C 8th June). However, these figures are still down 50% YoY!

However, what has been clear is that many of the online habits developed during this period are here to stay. E-commerce sales have surged to a 10-year high, according to figures released by the IMRG, driven “overwhelmingly” by multichannel retailers. 

Naturally, for many retailers the focus is now on improving their online capabilities. Many retailers were caught short by the lockdown, but the past 3 months have allowed them to re-evaluate & ensure that, if the country has to go into lockdown for a second time, they have online channels that can cope with the increased traffic.

However, as the world faces a new status quo, migrating successfully to this new, ever-evolving landscape – where digital transformation has arrived at a fast pace and safety remains a priority – requires more than branching out across every channel, offline and online. It means considering the concerns of anxious customers and embedding this within a unified system capable of responding to their needs.

For retailers willing to embrace bold changes, an omnichannel strategy presents an opportunity to turn the tide.

So, what are the issues and challenges?

Taking an omnichannel approach in retail is now becoming increasingly important. It requires delivering greater integration between physical and online operations in order to create a seamless shopping experience for customers, who for the last three months will have seen their options restricted online. Where they can browse stock, compare competitor prices, and place an order within minutes.

It means delivering a holistic, flexible service, wherever and whenever customers browse and shop for products, whether in store, through an app, or on a desktop. And the benefits are multi-fold: allowing retailers to raise brand awareness, drive loyalty and value, and ultimately capture more sales. The key is creating greater synergy across all touchpoints.

The COVID crisis has undoubtedly had an overall negative impact for many sectors. But already there have been many examples of businesses who have used it as a way to explore new ventures.

Many FMCG companies such as Unilever and Kraft Heinz, for example, have been setting up DTC sites during lockdown, creating bundles of ‘essential’ items to meet “historic spikes in demand” while customers found themselves restricted to their homes and unable to get their hands on essential goods. For UK firm Ugly Drinks, which started out as a DTC business, using an omnichannel approach is what allowed the business to secure triple-digit sales growth at a time where major economies across the world were being crippled.

We have also seen the UK’s hospitality sector getting ready to re-open its doors and digital channels are playing an important part in allowing safe trading. With a number of the big brands paving the way with technology investment, we will see ordering food & beer from an App become the norm. The challenge for these companies is getting the data working behind the scenes to ensure stock is being sold in real time!

But, while the pandemic has forced many businesses to rush online, formulating an appropriate omnichannel transformation roadmap requires a strategised approach. It requires retailers to leverage new technologies and tools and utilise the wealth of data available to them – while placing people at the centre of their focus.

Customers – at the heart of your Strategy

It has been rightly said: omni-channel retail does not require you to be everywhere, just everywhere your customers are.

People are at the heart of your omnichannel strategy, and in today’s volatile climate, those people are safety conscious – and emerging from lockdown with altered psychology and behaviour.

In Bicester Village, for example – which opened its doors on Monday – thousands of people have now signed a petition calling for the temporary closure of the popular shopping outlet following safety concerns of overcrowding.

While the opening of ‘non-essential’ shops has been met with long queues – showing that there is still demand for the ‘in store’ experience – cases such as these show that this will now largely be safety driven.

So how do retailers navigate this challenging climate, as consumers emerge with a heightened sense of their health and safety?

For starters, retailers need to show that they have adequate policies and regulations in place, especially while social distancing measures remain embedded within the customer journey.

Similarly, as retailers adapt to changes such as allowing only a limited number of people in store at a time, innovative thinking will be key in creating a seamless experience – one that puts customers at the centre. Whether it’s setting up entertainment under covered areas so customers waiting in line aren’t at the mercy of the British weather, providing hot drinks to those queuing, or – at a time where goodwill goes a long way – creating promotion codes that can be used across all channels, including the offline realm.

Figures show that over half (52%) of shoppers in the UK believe that retailers need to offer a more seamless experience between online and offline commerce to retain their custom.

But to do this successfully, requires leveraging technology.

Technology – leveraging innovation

Building an effective omnichannel strategy means connecting the underlying technology structure with your company’s back-end systems and customer-facing channels. It is a holistic approach – designed to give customers a consistent experience regardless of where they choose to shop, online or in person.

For brick and mortar stores, making the shopping experience fast and convenient has to be prioritised – replicating that of the online realm.

As long as safety measures remain in place, this means re-thinking both the habit of browsing and the previous retail trend for keeping customers in store for as long as possible. Whether it is rolling our mobile checkout capabilities or facilitating click and collection services in stores, the focus has to be on getting customers in and out as fast (and safely) as possible.

Starbucks is a great example of what has rightly been called one of the best omnichannel retail experiences – and this is rooted in tech. The ability to preload money on the Starbucks mobile app has forged a world of unlimited options for customers, allowing them to order from their smartphone, redeem rewards, and skip the line – delivering a fast, convenient service for customers, and one that builds loyalty.

Similarly, live chats are now a key part of the retail ecommerce journey, giving customers the option to quickly resolve issues online just as they can seek the help of customer service representatives in-store.

Second, social media marketing, used by the majority of retailers, offers another dimension, allowing customers to make purchases through social channels on Instagram and Twitter. The more channels retailers integrate, the more value customers can derive. The more likely they are to return.

But more importantly, there is increasing need to deliver a consistent customer experience at each and every touchpoint. Formulating a consistent approach, however, is no easy task: it requires customer insights; using (clean) data to better understand behaviours, optimise the shopping journey and ultimately sales.

Where do Vivo Come in?

Talent: Digital First

As we have discussed over the last few weeks. Retail, FMCG, Hospitality, Logistics & Supply Chain organisations have quickly realised their need to upskill their workforce. Having the right talent starts from the top & we have spoken to a number of C-Suite members across the industry who are embarking on investing in heavyweight hires across Technology & Online Channels.

Organisations who “roll the dice” and start the hiring process at some point over the next 10 weeks will have a huge jump on their competitors who wait until Q4 to make their changes.

We are seeing a huge increase in discussions on bringing interim consultants on board to assist with complete technology transformations, assist with the re-platforming of outdated e-commerce platforms & upgrading legacy systems.

As specialists within the Technology & Transformation space and focusing on the retail sector, we are able to provide clear insight & relevant market analysis to ensure your business makes the right hire, first time of asking.

Vivo are helping our retail technology leaders shape their talent strategy to engage, attract and retain world class talent to assist on what could be a “make or break” journey.

If you are about to embark on a change programme or are looking to bring in additional resource, Please get in touch with Jordan Diston for an informal discussion on our range of products can set you apart from the competition.