The continued spread of the Coronavirus has impacted almost the whole world. If the pandemic is not controlled soon, the world economy is likely to face the risk of a global recession. It has eventually ended the growth of the retail industry and affected offline retailers extremely.
As we all know this pandemic situation, COVID-19 has reduced the number of consumers in the retail industry of various countries over the last few months and divided many businesses into operational complexities. It is the time for the retail industry to reconstruct and rethink their business models digitally. Business owners are starting to think about how they should respond to this immediate transformation. They want to experience how they can use technologies to find innovative ways to build up new business models and drive more profits.
Therefore, looking at all the aspects of digital transformation in the retail industry is essential.
Digital Transformation in the Retail Industry
Nowadays digital transformation is entering into each field and every industry that we know today, starting with entertainment, education, healthcare, finance, banking, and more. While deciding about going digital, retailers think about how they can utilize technologies to discover new ways to increase income and build innovative business patterns. Well, let’s see the latest technologies that help in digital transformation for the retail industry.
The recent trending concept "data analytics" is applied to the retail process, maintaining the product record, forecasting sales, and predicting future markets. Data analytics can also be used to optimize arrangements of offers and products via the heat-mapping of consumers. Using analytics, consumers who are interested in specific products based on their last purchases can be identified quickly and efficiently. It helps in finding a suitable way to handle such buyers via targeted marketing campaigns. This is what data analytics deals with. Let’s see How data analytics help Retailers.
Predict future performance
It is also one of the important areas when looking into data analytics in retail businesses, as every consumer interaction has a significant impact on both existing and potential relationships. Executing the idea without knowing about it totally can be risky because a wrong decision could lead to an extended or quick loss. Business owners can predict the future performance of different products based on the buyers existing interests and likes.
Data analytics plays a significant role in the optimization of costs. Using different analytics algorithms, you can perform various functions, including controlling inventory levels, tracking demands, responding to market difficulties in real-time automatically, and monitoring activities of business competitors.
With price optimization, it becomes possible for shop owners to determine when to drop or raise prices. Before analytics was introduced, retailers would drop prices after buying season ends for a particular product.
When retailers get an understanding of customers buying trends, they focus on areas that would have high demand. It involves collecting demographics, occasion-based and economic parameters to create a good image of buying behavior across the target market. It helps in effectively managing inventory.
With data analytics tools, retailers can have a better understanding of the current trends of their businesses. Data analytics algorithms can be used to determine future trends based on purchasing data. Forecasted trends tell us what needs to be promoted to increase the revenue and what does not need to be promoted.
Artificial Intelligence (AI)
Artificial Intelligence (AI) is also implemented in retail in new ways over the entire service and product cycle, from planning to post-sale buyer service interactions.
Better Customer Service
AI can revolutionize the retail industry by letting webshops that help retail companies in promoting their products or services based on the customer’s behavior and purchase history. It is important to realize that seamless customer service can help run a business successfully.
Better Data Accumulation
AI can help retail organizations accumulate a huge amount of customer data. With collected data, AI can help create a personalized window-shopping experience for the customers by concluding. If you have the customer data, you can understand what your customer likes the most.
Virtual Trial Rooms
When trying to buy an outfit, trying out different clothes can be time-consuming and frustrating. Using virtual rooms equipped with digital mirrors, customers can try a variety of dresses without needing to change again and again.
With modern monitoring equipment powered by CV and AI technologies, retailers can capture and analyze customer behavior inside stores. It will help them gain an understanding of consumer engagement levels with store layout and optimize operations for higher profits.
Chatbots for Customer Support
AI-enabled chatbots let business owners engage consumers efficiently. Using AI-enabled chatbots, retail companies can manage various queries together without requiring a large workforce.
Chatbots are exclusively developed to answer customer queries, offer prompt support, and provide instant shopping recommendations to the customers.
If you are a retailer, you will have to put an effective digital transformation strategy into place that meets the changing demands of customers and the marketplace.
The most comfortable and fastest way to start and achieve digital transformation in the retail industry is to find the right software development team or a company to develop your application.
Developers at Techmango have extensive experience in Artificial Intelligence, business analytics, IoT, data-driven insights, and user collaboration. If you have a plan in your mind but looking for a technical team or a software company, feel free to contact our team. Our team will help you throughout your journey of digital transformation in the retail business.