Smart Retailing: The Need for Retailers to Embrace the Retail Revolution

Contrary to what you may have heard, retail is not dead. Rather, retail is in a state of flux. 

There's a tremendous shift happening now in the industry, and it comes in the form of smart retail. Businesses are increasingly becoming more digital, automated, and interconnected. 

To gain a better understanding of this evolving landscape, here’s a look at some of the developments in retail already having an impact.

The Multi-Channel Approach to Retailing

Multi-channel retailing offers customers the opportunity to purchase from you through different sales channels, such as in-store and on your website. While there have been some impactful pioneers in this business strategy, for many, it’s still a brave new world. 

To ensure that you have an effective multi-channel retailing approach, here are a few things to consider:

Think Differently About Online Marketplaces - Online marketplaces, like Amazon, eBay, and Etsy, have hundreds of millions of customers that frequent their platforms regularly. Rather than looking at these markets as competition, start considering them as sources of additional customers and revenue.

Take Advantage of Social Media Selling Features - If you’re a retailer, you’re probably already utilizing social media to promote your products and grow brand awareness. If you’re not yet using these platforms to sell your products, you might want to start. Social media platforms, like Facebook and Instagram, have made selling easier for retailers by adding a “buy” button feature that allow customers to place orders directly from your posts and pictures.

Ensure a Seamless Customer Experience - Your customers should have a consistent experience with your business, regardless of where they make a purchase. This, for example, means allowing returns and having the ability to earn loyalty rewards through any channel.

The Significant Role of IoT in the Retail Revolution 

Last week, in our Industry Insights Rethinking Retail with IoT webinar with Where and Share Co-Founder Trinity Wiles and WIN Connectivity CTO Tim Dentry, we had a very informative discussion on how retailers can use IoT to transform their businesses.

When asked about the benefits of using IoT in retail, Tim responded, "Well, there's a number of benefits that come to mind. One, . . . as it relates to being able to have contactless shopping, as an example, and also contactless access control, you're going to have devices and systems that are out there that are going to track everything from user movement in a retail location to stocking levels on shelves, to personalize shopping experiences based on the user's device. And a lot of these technologies are enabled either by Wi-Fi or Bluetooth Low Energy, or other wireless technologies that relate to cellular."

"So, the entire store experience is going to change. You've already seen the Amazon retail stores in that model, I'm sure. You’ll probably see that a little bit more as we try to maintain a social distance for all that we're going to do, and I think that you're also going to see immediate analytics that are going to be available, not only for the store management, but also analytics and insights . . . for the retail establishment overall on ordering and inventory management as well. So, a lot of exciting things could be enabled simply by connecting or tracking that user with a mobile phone."

Taking Advantage of Customer Data

The importance of customer data was also discussed in the webinar. When asked about what kind of data provides the most value, Trinity responded, "Definitely you have the data that you can actually capture in-store, point of purchase is always a good indication, but looking even beyond that – what are people . . . interacting with in-store? Something that we actually measure is product engagement."

"And I think consumer behaviors and just understanding how and where people shop is super important and providing a really good level of personalization."

And adding the importance of data privacy and compliance, she said, "So actually understanding what data you're collecting and even the software platforms and the tools that you're using, if you're storing or capturing customer information, you're also sharing it in that form, and you have to make sure you're compliant. And I know that can be really intimidating, especially if you're a small or medium-sized store, but you have to understand how to actually protect and take care of people's data and personal information."

So, How Should Retailers Respond to the Digital Revolution?

Smart retail is expected to have a widespread impact on the retail industry across all regions. This revolution will be a win-win for both retailers and consumers in the following ways:

• Customers Will Have an Upgraded Shopping Experience - As more sophisticated digital technology spreads across the nation, customers will get used to various seamless channels available for shopping.
• Automation and AI Will Boost Productivity - Innovations, such as machine learning, will solve systemic problems more quickly. Automation will speed up redundant tasks, like managing inventory, which will allow store employees to focus on more meaningful actions, like customer care.
• New Solutions Are Changing the Business Landscape - New technologies, like Where and Share, are influencing consumer purchasing decisions, helping to boost foot traffic for brick-and-motor stores and enhancing product engagement.
• Improvements in Tracking, Analyzing, and Monetizing Data - The more data a retailer collects on the customer journey, the more it can nurture and personalize the relationship.
• Logistics Data Will Be More Sharable in the Supply Chain - Engaging more efficiently with suppliers by offering access to logistics data will lead to more seamless distribution and more accurate market forecasting.
• Greater Control of "Last Mile" Distribution - Retailers must be prepared for new customer experience norms of the near future, such as rising expectations for fast delivery service within a matter of days rather than weeks.

It's crucial for retailers to embrace smart retail technologies that can improve customer satisfaction, as well as overall business operations. In order to achieve ROI, it will be vital for retailers to integrate various new technologies to gain a competitive edge in marketing, sales, and distribution.

Looking for more in-depth insights on smart retail? You can watch the full recording of our Rethinking Retail with IoT webinar here.