INDUSTRY WATCH
ONCE YOU EXPLORE AND
ANALYSE THE DATA AT
HAND, YOU CAN BETTER
UNDERSTAND WHAT IS
WORKING AND WHAT IS NOT.
I
t is clear that the role and function
of brick and mortar stores has
fundamentally changed. Increasingly,
physical stores have to become a
seamless extension of an overall customer
experience that blends the best of the
online and offline worlds. Indeed, savvy
and forward-thinking retailers understand
that the lines between online and offline
are blurring, and the question is not so
much around whether to have a physical
or online presence – the fundamental
question is how to deliver the most value to
your customer.
In South Africa, retailers should take their cue
from the global shift and find local solutions
that speak to the fundamental shift that is
happening. Arguably, many decision-makers
within local retail are stuck in ‘traditional’
thinking that is purely focused on cost savings
and efficiencies (the low hanging fruit) – with
little vision of a fundamental transformation
that puts the customer first.
has to fulfil these three functions. In South
Africa, we currently risk losing ground on all
three. So, where to begin?
Ask the right questions
In order to better understand how to deliver
value to your customer, you need to be
equipped with the right knowledge. This
knowledge can be extracted from data –
credit card data, buying patterns, location
data, stock trends, customer feedback, etc.
Enable payment flexibility: Allow customers
to pay via mobile for example and place the
emphasis on security as well as convenience.
Create an omnichannel offering: Today,
every retailer has to have an e-commerce
presence of some kind that links seamlessly
to the in-store environment.
Transition into the cloud: Move your data
and certain key services into the cloud. The
major providers such as AWS and Google
will ensure both data security and reliability.
Once in the cloud, you can slowly start to
explore more bespoke services.
Explore the IoT: Although the Internet
of Things (IoT) is still maturing in South
Africa, networks are getting stronger and
businesses can start to experiment with
different use cases.
Once you explore and analyse the data
at hand, you can better understand what
is working and what is not. Remember,
unless this knowledge can impact in-store
operations, it is probably irrelevant. Find collaborative partners: More and
more retailers are harnessing collaborative
partnerships to draw in foot traffic and
leverage key resources, such as a global
brand, to boost growth using the ‘store
within a store’ concept.
Everything has to come back to delivering
more value to the customer as they move
through the purchasing journey. To guide your
thinking, ask questions such as: Who are we?
Who are our customers? What do we do very
well? What do customers come to us for? Look at voice-enabled technologies:
Many experts are hailing the beginning of
a ‘voice’ revolution, whereby consumers will
increasingly make use of voice-activated
devices and services. Savvy retailers should
look to become first movers in this space.
Leveraging technology to drive value Find ways to apply AI to your customer
database: AI and Machine Learning,
while still in their infancy, can be hugely
transformative by creating questions that
you would never have thought to ask. Start
implementing data analytics and begin to
mine customer data for key insights.
Understanding where value lies
To keep up with the lightning fast pace
of change in global retail, most of which
is technology-driven, South Africa’s retail
decision-makers have to embrace a new
mindset that is less risk averse, more
experimental and that is entirely centred on
providing value to the customer.
Looking ahead, we believe that three
things will define retail success in the years
to come: convenience (for example, easy
online payment options); brand strength
(are you a premium brand?); and customer
experience (is your buying experience
seamless and easy?).
In order to remain relevant in a highly
competitive retail landscape, every retailer
www.intelligentcio.com
Once you have real insight into these key
elements, you can then start exploring
various technology solutions to ensure that
you will be able to deliver unique value to
the customer. If you start with the customer
in mind – not the technology – you will
undoubtedly make decisions that reflect the
true nature of your brand and business.
With regards to technology investment and
innovation, the most important thing is just
to get started – there is no need to have full
and expensive solutions in place right away.
With that in mind, here are our top seven
technology strategies that every retailer
should be looking at.
While many of these strategies may appear
daunting, the key is to get started and to
begin to explore where you can unlock value.
Success will depend on finding the right
partners and specialists, who can guide you
along the way.
Looking ahead, retail growth and sustainability
will be the domain of those who prioritise
experimentation and are able to think
differently about delivering value in-store. n
INTELLIGENTCIO
65