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6 Key Tech Forces in Retail_Arkadziusz_Zub
1. 6 KEY TECHNOLOGY FORCES
THAT WILL HAVE A MAJOR IMPACT
ON FUTURE OF RETAILING
Author:
Arkadiusz Zub,
Sales Director, Comarch SA
2. For retailers, the years to come will be characterized by a transformation
process as extensive as never before. The adjustment capability and adjust-
ment pace of solutions addressing the latest trends faced by retail compa-
nies will have a huge influence not only on the retailers' image but also on
their future. Now, the questions arise if the anticipated changes in the retail
industry will continue to move towards the strengthening of the customer
journey and if they will be as extensive as expected? Before trying to answer
the above questions, we will have a look at the most important technologi-
cal trends speeding up the industry transformation at first.
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3. 3
1. OMNI-CHANNEL
STRATEGY
Over the last few years, it has been most retail
companies' goal to strengthen their presence
on all available sales channels. Companies
usually selling their products in brick-and-
mortar stores have started to invest in e- and
m-commerce. On the other hand, online
stores have realized how important it is to
build their brand via direct interaction with
their customers at local stores. However, for
many years, the traditional and online sales
channels of one and the same company have
often been operated independently of each
other using separate customer databases,
inventory records, etc. The desire to contin-
uously optimize their businesses led retail
companies to the decision to replace their
multi-channel strategy (independently from
each other operating sales channels) with an
omni-channel one based on the complete
integration of all points of contact involving
the customers' interaction with the relevant
brand. The advantages resulting from this
change could be immediately noticed by the
customers who are now able to do their shop-
ping using the Click Collect service (i.e. they
buy a product at an online store and pick-up
their order at a local store) or, vice versa, they
order a product online currently not available
in a certain brick-and-mortar store and get it
delivered by courier (Store to home service).
Both traditional and online sales channel have
been starting to complement each other; the
differences between them are already blur-
ring which enables customers to start and
continue their shopping at any place, time, or
using any device.
4. 4
2. CLIENTELING
Numerous studies prove that customers provided with a high-level customer
service spend a higher amount of money on their shopping than they originally
planned to. Clienteling applications help retailers to identify every customer
entering the store and to start a dialog with them based on their shopping
history in different sales channels, their preferences and resulting recommen-
dations, their loyalty program status, and customized promotions. The salespeo-
ple can view all relevant data on the screen of their mobile application, which
enables them to initiate the customer dialog and to provide a completely new,
extraordinary customer service.
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3. BEACONS
Beacons are simple and relatively cheap tools for the communication with
smartphones via Bluetooth. Beacons for indoor navigation are able to guide
customers strolling through the shopping center directly to a certain store. Just
after entering the store, the customers are sent personalized, location-based
messages enticing them to shop in the particular store and thus strengthening
their brand loyalty. Beacons gather data on the customers' shopping paths,
their ways through the store, and the places they stop for longer. As a result,
store owners are now able to optimize their product presentation based on
hard facts in contrast to theoretical assumptions they had to rely on before.
5. 5
4. MOBILE PAYMENTS
Despite many obvious pros, mobile payments have not gained popularity as
fast as had been predicted. There are several reasons for this: First, not many
retail companies have equipped their brick-and-mortar stores with terminals
enabling contactless payments, yet. Second, there is no clear market leader
among the providers of contactless payment systems; most companies offer
an extension of already existing credit card services. Third, customers must see
a clear advantage in mobile payments. Until now, only Starbucks managed to
achieve this feat; the company has combined mobile payments, their loyalty
program, and information on promotions in one smartphone app.
86%of respondents claim that by 2030 in-store cash
register transactions will be completely replaced by digital
and mobile payments.*
*Based on the “Future of retail shopping” survey, carried out for Comarch SA by KANTAR TNS in 2017
6. 6
5. SOCIAL
COMMERCE
Usually, the social media activities of retailers
are limited to publishing information on new
collections, contests, or promotions. By these
means, retailers hope to attract crowds of cus-
tomers to their online, mobile, or brick-and-
mortar stores. However, the currently available
technology allows utilizing the potential of
social media portals to a much greater extent.
With the help of analyzing tools for social
media, you can, for example, determine if peo-
ple belonging to your target group see your
brand as positive, neutral, or negative. If an
unsatisfactorily high number of negative com-
ments prevails, you can take appropriate mea-
sures to reverse this development. Retailers
will surely want to react to users searching
for a certain product in real time and enable
them to buy immediately or to get directed to
the appropriate online store.
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6. LOYALTY PROGRAMS
Retail companies were the first to implement loyalty programs which are
now wide-spread and commonly used. Most loyalty programs are limited to
collecting points which can be redeemed for rewards or discounts. However,
gathering more customer data enables companies to offer additional rewards
corresponding to the individual preferences of the particular customer. What
is more, loyalty programs enriched by gamification elements can increase the
customer engagement by fueling competitions and inspiring a feeling of satis-
faction from tasks being fulfilled (e.g. shopping).
76%of respondents aged between 35 and 44 participate
in at least one loyalty program.*
*Based on the “Future of retail shopping” survey, carried out for Comarch SA by KANTAR TNS in 2017
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All this leads us to the conclusion that in the world of retail products will
become less important – they will be superseded by the impressions cus-
tomers experience during their visit of an online or brick-and-mortar store.
Technologies supporting the customer journey will shape the brand image
and have a great influence on the customers' purchase decisions. Therefore,
the implementation of specific solutions has to be thoroughly reflected,
especially with regard to the relevant target group. An innovative customer
service requires the tight integration of many applications. But the required
tight integration of solutions selected according to the best-of-breed strategy
does not always result in the expected results. Therefore, companies should
look for an IT provider which does not only deliver and integrate systems but
also produces them. Instead of planning and executing the time-consuming
integration of various systems, retailers will be able to concentrate on the
tasks with direct effects on their businesses and customer relations.
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