The key drivers of digital transformation in retail – Information Age
The key drivers of digital transformation in retail
As the retail increasingly focuses on digital transformation, Freya Jacob, assistant editor of Brainvire, discusses the key drivers of this process
How can digital transformation thrive within the retail sector?
Digital transformation is defined as gathering people, data, and processes in a way to create value to your online customers and stay competitive in the online digital marketplace, and this is becoming more prominent in retail.
Online digital market retailers are experimenting with countless ways to respond to the needs of the new shoppers, try to merge the digital market with the traditional market, and try various ways to revolutionise the modern-day digital transformation.
The online retail market industry is a trending market industry due to the digital transformation that is taking place. The customer has total control over the online retail industry, and only a well personalised, unique online retail experience attracts the attention of the customer, leading them to spend their money lavishly.
Let’s look into some of the key drivers of digital transformation in the online retail market.
Delivering the product according to the customer’s emotion
The customer is said to be the key resource of the online retail market chain, and customers’ necessities vary differently. For instance, why do people buy wedding bands? Is it a necessary survival instinct? No. But what does the wedding band mean to the customer? Affection, loyalty and commitment. Thus, due to these customers emotionally investing in buying a ring, this leads to emotional drive purchases.
This emotional bond is not limited to just a wedding band, but people tend to purchase various clothing to feel stylish and trendy, electronic gadgets to look tech-savvy in the modern-day world, adventurous outdoor equipment, exercise equipment to look healthy and fit, and so on.
Fitbit: from start-up to global health phenomenon and lifestyle choice
Consumers may often be loyal to specific brands because they like the experience of wearing or using that brand. Many of the customers like being associated as a devotee of a brand, for example designer jewelry, or luxury perfumes. Consumers like to be part of a community that is more exclusive, special, and better.
Digital transformation plays an important role when it comes to delivering the products which are desired by the consumers. Digital transformation is the latest technology tool for differentiating the brand and delivering the product according to the emotional experience of the customer.
Machine learning and artificial intelligence are the two important digital transformation tools
When it comes to digital transformation in online retail business, it is necessary to create an emotional and covalent bond between the customer and the online retailer, and it is necessary for the online retailer to make the customer feel valued and appreciated.
Machine learning and artificial intelligence (AI) play an important role in bonding the online retailer and the customer. AI collects the data from various sources through machine learning technology, then feeds the collected data into different machine learning tools that in turn gives future outcomes.
Machine learning tools help online retailers to identify the shopping patterns and behaviours of the customers. Thus, by accumulating various shopping patterns of the customers, it customises promotions, special offers, product recommendations, pricing and other factors, to which customers are comfortable paying. Machine learning also helps with different products or promotional changes based on the different holiday seasons.
Customers may require immediate assistance or answers to their queries any-day and at any-time. AI is the easiest, most convenient, and better tool for the support technologies. Chatbots allow online retailers to deliver 24/7 service to the customer, and act as an online support executive that instantly responds to the customer’s queries through texts or chatbot messages. They can also have different brands according to the customer’s interest.
Considering chatbots? 3 signs your business is ready to accelerate with conversational AI
Chatbots are profitable and quick responsive service tools in the digital transformation era, which helps to seal the conversions and generate new sales. Furthermore, chatbots act as the brand’s voice to the customers. The chatbot will deliver what it is programmed to say, and thus you can rely on them for the security of the data. Chatbots won’t allow breaching of data, either. Being programmed, it cannot act rude or inconsistent with the customers.
Unified commerce plays an important role in digital transformation
Customers use multiple channels to share and connect to online retailers, for example through the web or social media, and they expect the online retailers to be ready and waiting to fulfill their requirements. Thus, unified commerce plays a key role in this cross-channel experience.
Unified commerce is a single, fully integrated software system that is used to maintain all the different systems that are used by online retailers to conduct business, from a single interface.
Before the unified commerce system, online retailers used a different system to manage their business. For instance, one system would handle the e-commerce website, while another would support the support centre. The problem with these many discordant systems is that they create a repository of fixed data also known as a data silo, making it difficult for online retailers to spot the latest trends and get a clear view of overall business health.
It is a time-consuming and resource-draining process when it comes to merging the data obtained from different systems. Furthermore, if several systems are depended upon to operate together for the company to run, the other systems would be affected if one system malfunctions or produces incorrect data. Thus, a unified commerce system plays an important role in breaking down the fixed repository data and integrates data from the different systems into one system.
Digital transformation helps in innovations
The growing demands of consumers lead to the innovation of new products in the online retail market. The digital transformation in online retail business leads to a unique stretch beyond the experience. This leads to satisfaction amongst most customers.
Disconnect between IT and business is bad news for customer experience
Digital transformation helps to access information on a button click
The ever-changing technological landscape helps us to order various products on a click of a button. The digital transformation of AI and machine learning tools makes it possible to perform the customer request rapidly.
The various processing tools process different customer requests and let them choose the desired product that would satisfy the needs of a customer.
Digital transformation provides great mobility
Online retail customers use various digital tools while shopping for their products. Most customers use mobile devices to perform this task, thus creating a great platform for digital market transformation.
Various tasks such as payments and product checking via a barcode are done through smartphones. The data accumulated through the mobile phone is stored in the back-end of a system through a machine learning tool, which later processes this data and helps to generate various schemes, offers, etc.
Digital transformation can be done with a partner
Digital transformation may sound interesting, due to the various tools used in the process, but what does digital transformation require?
A digital transformation journey can be started with a partner. This is the easiest, quickest and most effective way to start a digital transformation. It is risky, and creates a high stake to process the business alone, but a reputable and experienced partner mitigates that risk.
The role software intelligence plays in management consultancy
Therefore, the partner having the right industrial, as well as technical knowhow can lead you to implement digital transformation in your business, thus creating a great outcome.
Discover Past Posts