A new retail research report from Honeywell/PlanetRetail provides valuable insight into the impact of digital transformation on retailers in the challenges of providing customers with a seamless in-store and online shopping experience.
Fears over losing technology edge have risen sharply
Retailers said meeting high customer expectations online and in-store are among its biggest challenges:
37% cited the challenge of improving customer loyalty- 32% finding and retaining the best employees
- 31% were challenged by integrating the in-store and online shopping experience.
When asked if they are outperforming their competitors, most retailers expressed low confidence in how they measured up to their competitors:
- 44% said they performed worse than competitors in handling returns
- 42% in personalized shopping experience
- 42% in efficient point-of-sale experience
- 41% in timely and efficient service
- 37 % in convenient delivery options or seamless delivery
- and 34% in keeping the right product in stock.
Addressing challenges of today’s retail environment
According to 59% of retailers surveyed, technology is playing a greater role to enhance the customer shopping experience.
When it comes to technology, retailers are using it in increasing degrees:
- 46% are utilizing mobile technology
- 37% are using advanced analytics and big data
- 37% are using mobile tablets
- 31% used mobile apps for product lookup
- 31% used mobile apps for customer experience and clientiling
- 27% used mobile handheld scanners
- and 25% used handheld computers.
Where retailers were meeting multichannel expectations of customers well, 50% said revenue was increasing while 31% said revenue was down or flat. Where retailers had integrated in-store and online experience, 58% said revenue was increasing versus 31% who said revenue was down or flat.
Early adopters of retail technology see strongest growth potential
Retailers said new technology is key to increasing revenue.
50% said advanced analytics/big data would help increase revenue- 44% said smartphones would grow revenue
- 38% said mobile apps for customer engagement would increase revenue
- 37% said mobile apps for product lookups would push revenue higher
- 35% said mobile tablets would help increase revenue.
Investment priorities to attract, engage and retain shoppers
Over the next 24 months, surveyed retailers identified key IT investment priorities to help deliver an enhanced, more personalized customer experience, better consumer insights, and new revenue-generating opportunities:
- 51% will invest in social media
- 50% will invest in serving customers in a timely and efficient way
- 40% will invest in the customer friendly website
- 39% will respond faster to emails from customers
- 39% will invest in faster point-of-sale response
- 38% will increase convenient delivery options for customers such as “buy online, then pick up in-store”
- 36% will invest in better inventory management
- 35% in seamless delivery between online and retail stores
- 33% will invest in providing “away from desk” checkout i.e. “line busting”
- 26% will invest in more personal online shopping
- 25% will provide effective online help and support.
Investment in mobile interaction is key for success
Mobile investments are a quick win for retailers looking to improve their bottom line and delight customers. Many are already taking steps to increase their use of mobile devices on the retail floor, in the warehouse, at the point of sale and at delivery.
67% of retailers plan to increase their use of mobile devices.
While Windows has historically been the dominant OS, Android mobile is growing fast due to increased availability of software and apps to support retailer needs.
While 47% of retailers are now using Android, 52% expect to be using it in the future. 43% of retailers are using Apple and 45% expect to use it in the future while 38% are currently using Windows and only 32% expect to use it in the future.
You can you can obtain a free copy of the “How Digital Transformation is Shaping the Retail Landscape” report here.
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