Benefits of digitalization in the retail sector

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Today, experience is everything in retail. Gone are the days when retailers relied on more competitive prices or superior quality products as the only levers to boost sales. The rules of engagement have changed, putting customer experience (CX) at the centre of attention and the relationship with customers.

Customers demand consistent experiences across all channels
As consumers and retailers increasingly interact across the retail journey (one in nurse database two companies has doubled the number of channels in their CX strategy since 2012), customers are no longer willing to put up with mediocre experiences. They now expect personalized engagement, seamless purchasing processes, and exceptional service across all their interactions with retailers. And retailers are ready to meet these ever-growing expectations.

What does digital transformation mean for business owners?
According to a recent ESADE study entitled “The attitude of retail entrepreneurs towards digital transformation” , in first place, this process is interpreted as being present on the Internet so that your business can be located (66.9%) , followed by implementing new technologies (63.7%) . Finally, and from fifth place, there is the fact of adapting to what the customer demands (53.8%) , as well as accompanying them before, during and after the purchase (52.0%). It is clear that transforming the customer experience (CX) is present in more than half of organizations.

Whitepaper. Trends in the retail sector
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What achievements have been obtained as a result of the changes?
As a result of digital transformation and according to the same ESADE study, in 23.2% of cases the value proposition for the customer has changed; in 21.1%, online sales have increased ; for 19.3% of businesses, business margins have improved; in 17.7%, major logistical changes have been introduced and in 16.8%, the monetization model has been modified .

Fortunately, almost 50% of business owners believe that they will recoup the costs of this transformation in less than 2 years, and another third in between 2 and 4 years. When reflecting on the changes necessary to undertake innovation processes, there are three questions that a modern retailer must consider when faced with modernizing the management of its business:

How does my business connect with my customers across multiple channels?
Customers expect to move seamlessly, consistently and between physical and digital channels, keeping their loyalty benefits, shopping cart or wish list. In fact, 73% of customers use multiple channels throughout their customer journey.

How can I prevent a stockout?
It is true that the product portfolio must be optimized to reduce stocks and maximize sales, but the existence of disconnected legacy ERP systems makes it difficult to analyze the sales performance of products in real time, much less predict with a high degree of confidence an eventual breakdown.

How do I make a difference in delivering a successful Customer Experience?
When, through the Internet, buyers have access to everything at all times…

As you can see, one of the benefits of digitalisation in retail is the ability to offer consistent, omnichannel, innovative and exceptional customer experiences. To do this, it is essential that business owners rely on retail management software that covers the specific needs of the sector (inventory and warehouse management, point of sale (POS) management, product management, implementation of customer loyalty programmes, etc.) and that allows them to reduce costs and optimise operations.