Digital Transformation in Retail Industry: Why it is important now?

Digital transformation is here. But, what is Digital transformation? Many are still wondering if someone can give them a 3 minute, simple overview of why a company needs to transform digitally. If you have ever pondered on this thought as you are busy navigating your day-to-day life, you are in the right place! 

Let's examine the idea of digital transformation through the lens of retail. Retail is all about buying goods from suppliers at a low price and selling them back to consumers at a higher price. In this way, you make a profit. Digital transformation for retail does not begin and end with a specific function, like a shopping cart website. In reality, organizations must make deep changes to their operations, supply chains, inventory management, and customer relationship processes. They must analyze data to accurately project demand, react to customer needs, and ship products quickly and efficiently.

Provide them as many details as possible about the product to simplify their decision, make their check-out process seamless, and amaze them with fast delivery and return policies. If possible, engage with them personally, understand their tastes and what they are looking for, talk to them and treat them in a way they like to be treated so you can build a loyal relationship. In digital marketing terms, you can call this 'omnichannel enablement' as your customers' engagement is not tied to a specific channel but based on their preferred mode of engagement.

Omnichannel Personalized Experience

As competition increases, retailers will have to reevaluate their offerings in their markets and see where they can differentiate. For example, this could mean bringing more in-store experiences online, allowing online shoppers to have a video call with sales associates. Retailers can remove doubt and confusion during purchase decisions with augmented reality technology, helping customers visualize products with cameras on mobile devices.

Consumers remain reluctant to enter public places, which drives demand for alternative delivery and pickup services. New delivery models are already gaining traction among the general public, with BOPIS (buy online, pick up in-store) expected to stay in demand long after the pandemic.