The future of digitalisation in retail
Investing in digitalisation, IT solutions and infrastructure that meet the demands for seamless, digital shopping experiences is crucial to stay relevant in an ever-changing industry. Today's consumers are digitally literate and demand a shopping experience that is seamless and smooth, whether online or in-store. But what are the digital tools of the future in retail, and what demands does this place on your IT infrastructure?
Seamless integration between online and offline retail
As physical stores harmonise with digital, we are seeing a shift in how the retail industry chooses to design its processes. This is a journey of change that has been going on for several years and is based on the concept of Virtual first. This means that processes and working methods are designed and adapted to the digital world. With Virtual First in mind, an omnichannel strategy can be developed and new technologies used to create an integrated and unified experience across all interfaces between your organisation and your customers. More customer interfaces also collect more data for better analysis and decision-making. The challenge is to build a robust IT infrastructure that can handle these effective integration solutions. If you also have a large legacy of old systems, this can result in high costs and hinder the pace of innovation.
“With digital solutions and integrated systems for real-time analysis of customer behaviour and sales trends, you can create personalised strategies, customer journeys and tailored offers online”
A personalised customer experience with data, analytics and insights
Of course, there are several digital tools and strategies to create a more personalised and accurate customer experience both in-store and online.
With digital solutions and integrated systems for real-time analysis of customer behaviour and sales trends, you can create customised strategies, customer journeys and tailored offers online. AI streamlines data analysis and helps you create personalised campaigns, offers and suggestions based on customer behaviour, preferences and purchase history. It also facilitates the segmentation of your customer base to create more relevant and effective marketing and communications. The result is a more personalised customer experience with greater customer satisfaction and increased sales.
Another area where data collection can increase efficiency and help you achieve your business goals is in predictive analytics for inventory management to predict demand and optimise stock levels, which in turn reduces costs. Here, IoT can also contribute to smart store management, where the use of connected devices monitors and optimises store operations, layout and customer interactions.
“Contactless and self-service applications have been commonplace in retail for a long time and will continue to develop”
Virtual fitting rooms and AR technology further personalise the experience and allow customers to try a product virtually at home or in-store, leading to more confident purchases and fewer returns. Furthermore, click-and-collect solutions enable online purchases to be collected in-store. This can save time and increase convenience depending on where the customer lives.
Contactless, digitalisation and automation to improve efficiency
Contactless and self-service applications have been commonplace in retail for a long time and will continue to develop. Self-checkouts in physical stores are the norm today. This, combined with contactless deliveries for online purchases, has resulted in a completely contactless shopping experience.
Automating customer service is also common. With trained chatbots answering frequently asked questions and handling support cases around the clock, the customer gets help faster and you get a more efficient customer service.
Furthermore, we see that robotised warehouse management is increasingly common, where the use of robots streamlines warehouse work and inventory. Which both reduces errors and saves time.
“However, this requires a robust IT infrastructure, strengthened cybersecurity, technical skills and a cultural change throughout the organisation”
Cybersecurity and data protection
More connected customer touchpoints also mean more attack surfaces for threat actors to exploit. It is important to implement advanced security measures to create secure payment solutions for your customers. You should also develop strategies to ensure that customer and payment information is handled and stored in a secure and compliant manner.
Opportunities and challenges of future digitalisation
Implementing AI, AR, automation and new technologies can improve everything from customer service and stock management to the shopping experience and marketing efforts. This can lead to increased efficiency, customer satisfaction and stronger performance. However, this requires a robust IT infrastructure, strengthened cybersecurity, technical skills and a cultural change across the organisation. If you don't have the expertise in-house, you should enlist the help of an IT partner. Nordlo has extensive experience of working closely with large, well-known retailers. We provide you with tools that keep you relevant and competitive today and in the future.