How should retailers approach digital transformation?
Consumer behaviour is changing, and with the increased uptake of mobile and online devices, consumers are now online 24/7, easily switching channels to get things done. Mobile and online shopping is no longer just part of the multichannel mix but the focus of it and retailers must be sure their offer is fit for purpose.
Ecommerce consultancy Salmon’s chief executive Neil Stewart says: “Digital transformation can open up new revenue streams, improve operational efficiency and help retailers deliver new services.”
There are three pillars on which all retailers should approach digital transformation.
Most importantly, retailers need to focus digital transformation on the customer.
When approaching digital, it needs to be with customer impact in mind, attracting new shoppers and tapping into different markets without alienating the existing consumer base.
“Retailers with a weak digital strategy tend to focus on internal processes and cost reduction when they should take an outward-looking approach, deciding what their digital customer experience will be and build their strategy from there,” says Stewart.
Secondly, the responsibility of digital transformation cannot sit with one team.
Retailers should assess digital requirements from across the business and set objectives, bringing together cross-functional digital talent and break away from legacy ways of operating.
Stewart says that retailers also “need to find the right funding model, setting clearly defined and articulated KPIs”.
As the power of online and mobile commerce continues to grow, retailers must ensure they have a robust digital strategy in place to cater to growing user demand.
“Retailers must ensure they have an exceptional online offering to deliver true competitive advantage and future-proof their business,” Stewart concludes.