2. OUTLINE OF
TOPICS
WHAT WE'LL DISCUSS
What defines the direction of the market development
What are the top field trends concerning digital transformation
What technology empower the retail digitization
The retail transormation: what is the future
Springs 2019
3. DIGITAL
TRANSFORMATION
IN RETAIL
WHY IT'S A NECESSITY
Since the emergence of eCommerce and moreover mCommerce digital
transformation of the retail and related fields appears inevitable.
Already 54 percent of customers complete in-store product evaluation
only after looking up detailed info on a smartphone therefore it’s
definitely time for store owners to go digital. While online purchasing
only is still possible future, technology entrance in all aspects of a store
or even a brand business operations is the only way to stay in the game
on such a competitive market.
The reason is that customers affect the market conditions more than its
every particular representative including conglomerates like Amazon.
Big players rather stand out as proclaimers and trend establishers. They
have the resources and instruments not just accurately define the needs
of potential buyers but actually fulfill all demand aspects.
Springs 2019
4. At least 40% of all businesses will die in the next 10 years… if they don’t figure
out how to change their entire company to accommodate new technologies..
JOHN CHAMBERS, CISCO SYSTEMS
THINK ABOUT IT:
All four steps of a customer path the one should go
through to acquire a product have a defined direction
for growth:
Research should be simple and comprehensive,
Comparison - convenient and informative,
Ordering - transparent and suitable
Delivery - timely and secure.
Each stage complete the customer experience that is
the essence of the domain. The technical progress in
particular in scopes of AI and AR/VR gave the ability
to extend its borders and satisfy significantly raised
buyer expectations.
Springs 2019
5. Springs 2019
to marketplace and
detail product
information for
comparison should be
simple and univsersal
ACCESS
should be
straightforward,
transparent and fast
disregarding the
order complexity
ORDERING
that is defined by
customer experience
and engagement
should be constantly
on the certain level
STATUS
CUSTOMER JOURNEY NEED CHANGES
6. The main direction of going digital in retail 2019 is the increase in investments
from the field players and making an advancement into the existing trends by
using IT innovations.
Springs 2019
8. DIGITAL
TRANSFORMATION
IN RETAIL
CURRENT TRENDS
Springs 2019
Real and digital experience: to find
the balance
Shipping and delivery: to accelerate
the process
Retail strategy: to personalize for
multiple channels
Payment processing: to simplify and
secure
9. Springs 2019
CUSTOMER
EXPERIENCE:
REAL & DIGITAL
Since the connection between online and in-store exploration becomes
stronger the update require both of them. It concerns presentation,
accuracy, relevance, and synchronization of product and brand
information that provided personally or with content.
No less important are other goals of advertising and digital marketing
campaigns: brand awareness and discoverability. Since the significant
part of everyday customer attentions are on gadgets they are the most
efficient instrument is the marketer’s toolkit.
That’s why whether queries initially brand-oriented or not the path to
searched content should be short, clear, universal and ubiquitous. Until
the level of customer experience is insufficient, relying on buyer
patience won’t bring fruits: they rather turn to another company
nearby.
10. Springs 2019
DELIVERY: SPEED
& VISIBILITY
Being the ending link of the supply chain digital transformation retail
trends influence its other segments since they affect the kind and
quality of a product and its path to an end-user. Especially, it concerns
Last-Mile delivery since its service level completes the brand image
even if it's provided by a separately.
The way to efficiency is already being established by the ongoing
logistics business process automation. It’s integration of digital
management systems in warehousing and inventory, transportation and
logistics, security and resource planning including workforce
.Additionally, such software solutions allow setting up the already
demanded state of visibility that gives customers the possibility to
monitor and if needed affect all stages of the product acquiring from a
store and ergo establish the desired level of trust between deal parties.
11. Springs 2019
SERVICE
PERSONALIZATION
Keeping the sufficient level of focus on each direction of advertising
and marketing defines the trended model of this business scope
operation. The biggest challenge is to show a custom approach within
every channel considering the diversity of society segments in views,
habits, and preferences that can’t be entirely narrowed with the
product specifics.
Despite concerns of personal data privacy customers expect a high
level of understanding of their current and future needs. That can’t be
established without developed data analysis and forecasting one of the
results of which are predictive recommendations for all-time
personalized product suggestions.
Another challenge of experience personalization is its “loudness”. Too
eager attempts to connect, suggest or even casually inform about
something may result in a much higher level of rejection that implies an
initial precaution and canät be outweighed by average customer
engagement. AI approaches allow tuning the campaigns optimally
without constant comprehensive researches and surveys.
12. Springs 2019
PAYMENT
UPGRADE
One of the main customer safety concerns is providing the personal
data during purchasing. Especially, it concerns info required for
payment operations such as credit card information. It outlines two
tasks for store owners: setting the required level of data encryption as
well as establishing partnerships with reliable transaction operators.
Trends for cashless checkout now more than simply swiping a credit or
debit card near a cashier. Besides self-service registers more and more
mobile devices are included in the process. Moving payments online
makes them more straightforward and traceable for smartphone
owners.
Such approaches to business running turn stores more in showrooms
and purchase handing-out centers. The rising rental rates and ubiquity
and trust to eCommerce and delivery services modern store experience
can become obsolete. It’s already losing in human touch not just in
handling operations but also consulting services leaving them out to
technology.
13. Springs 2019
AI & DATA SCIENCE IOT & ROBOTICS PWA & CLOUD AR & VR
New approaches to diverse
task definition, execution
and management that allow:
Improving of strategic
planning
Optimizing workflow,
decision-making,
collaboration
Personalizing advertising
and customer experience
Implementing dynamic
pricing
Automating various
processes
Novelty devices, hi-end
equipment, drones and
robots that can:
Execute routine tasks
of various complexity
Improve and speed up
delivery services
Interact with customers
offline via smartphones
Bring workflow
automation on the new
level
Improve efficiency of
task execution
Solutions based on these
technologies allow:
Lowering the
dependency of
business and customers
from hardware
Store the significant
data amounts online
Improve customer
experience and
engagement
Cut expences on
develoment and
maintainance
Augmented Reality and
Virtual Reality can make:
Digital experience
more immersive
Virtualize and
accelerate in-store
shopping
Advertising/marketing
campaigns more
engaging
Lower expenses on
testers and good
damaging
Technologies empowering digital transformation in retail
14. Springs 2019
CLOSER TO COST-EFFICIENCY
In January 2019 report IBM outlined the
expected areas of highest growth in
iexpansion of digital transformation over the
next three years. It shows that it will affect
areas currently with the lower penetration.
SC planning Logistics In-store X Operations Collaboration
100
75
50
25
0
RETAIL 2019
INTELLIGENT
AUTOMATION
36%
49%
27%
43%
29%
41%
41%
33%
22%
40%
15. Springs 2019
2019 might bring new additions to the list of digital
transformation trends in retail however their definitions have
been stable for a couple of years. The informational technology
domain empowers the process of solving existing challenges
and widening possibilities.
It also contributes to its progress by apprising the retail pros
and startups in the application specifics and necessity of digital
solutions. Although unlike logistics this field is much more
dynamic and flexible thanks to its digitization, in particular, its
representatives prefer to invest in efficiency proven solutions.
Considering the current state of the digital transformation its
outcomes still require time to achieve that status.
BETTER TECHNOLOGY, BETTER FUTURE
16. Springs 2019
WHO WE ARE
MAKING DIGITAL FUTURE
POSSIBLE
We are digital transformation agency with 4+
years of experience providing business
automation solutions for:
logistic & transportation;
retail & eCommerce;
real estate & hospitality;
recruitment & marketing.