The customer-centric revolution and the race toward obsolescence.

The war for customers is shifting to an inflection point where technology companies are racing forward with capabilities that were science fiction five years ago. The retail industry has entered a new era where customer expectations are being set by companies like Amazon, Google, and Netflix with advanced AI systems providing personalized experiences - at scale.

New technologies are already shaping buying among consumers who expect convenient interactions across a spectrum of devices and channels. These technologies have begun to redefine retail standards as we know them from sales per square foot, operating margins, to the very purpose of being a retailer - it is now about becoming a customer company.

This 'customer-centric revolution' will work smarter, not harder, when powered by Customer Science which harnesses data, artificial intelligence (AI), and behavioral science to understand why customers behave as they do. The new era puts tremendous pressure on retailers who must embrace technology companies that can provide a real-time stream of personalized insight into consumer behavior at a massive scale or face their inevitable obsolescence. Many technology companies in first wave that established themselves in retail are now facing "business oblivion". This is being hastened by retailers who have enabled advanced technology companies to become their official partners in the race against Amazon.

In the new age of customer-centricity, technology is shifting from a nice-to-have into a need-to-have . However, not all technology is created equal, what will differentiate one company from another is the ability to track everything a customer does over time and link it back to their digital footprint. In retail - this means understanding behavior at scale across multiple devices, which/who customers interact with through digital touchpoints including search engines, social media platforms, mobile phones, and websites. Those companies that can provide the most behavioral insight - to understand why customers do what they do - will generate the most business impact for their technology partners.

So what can companies and e-commerce startups do immediately to harness and utilize customer-centric data and tools? Here are few suggestions.

1.??Embrace your 'touchpoints'

First-generation technology companies that failed to embrace the customer data revolution will be forgotten in the dustbin of history . It is not enough for traditional retailers to simply push out a mobile app; they must understand they are now operating in an age where they compete against all of their 'customers' touchpoints, not just store clerks or a website.

2.??Collect and collaborate with third parties

Retailers must embrace the next generation of digital partners, which includes technology providers that can provide a real-time stream of personalized insight into consumer behavior at a massive scale. As Amazon's Alexa has shown, customers are starting to think in terms of devices and platforms.

3.??Embrace AI in your marketing and product development

The power of predictive analytics will continue to grow as the next generation of technology companies - powered by artificial intelligence (AI) - re-imagine what is possible with customer data that was previously too expensive or impossible to capture. For example, machine learning can drive digital marketing effectiveness by putting the right message in front of the right person at the right time.

4.??Consider subscription models for your brick-and-mortar stores

Customer data is only as good as the action it drives, so companies who can provide retail insights at scale will generate revenue by driving their customers to purchase more often and increasingly through subscriptions. We are already seeing examples of this in the clothing industry with companies like Stitch Fix and Trunk Club who understand their customers so well and predict future purchases that they can provide a 'box of stuff' (or trunk) to fill any holes in wardrobe. The key is not only forecasting items for future purchase but also understanding which items are likely to be returned.

5.??Know that you are now in the business of capturing and using, not just collecting data.

As the transition into the 'age of the customer' continues to evolve, retailers must understand that collecting data is no longer enough - it is all about understanding what they have, its value, and how they can use it to drive customer-centric change.

These are not easy challenges but these are critical opportunities for traditional retailers to utilize new technology and consumer insight to better compete against Amazon. If they fail to do so, retailers will quickly find themselves in a race toward obsolescence .

The winners will be those technology companies that can provide a real-time stream of personalized insights into consumer behavior at a massive scale, but powered by the fusion between data, AI, and customer experience.