INDUSTRY WATCH
Driving Digital
Transformation in
the retail sector
For retailers who are yet to embark on their Digital
Transformation journey, going omnichannel is a great
temptation. However, Vikram Bhat, Chief Product Officer,
Capillary Technologies, tells us there are other factors that
retailers need to be aware of if they are to make a success of
Digital Transformation.
T
he ecommerce momentum is
becoming unstoppable as brands
are cashing in on a number of
factors such as spike in mobile applications,
a new generation of high-spending shoppers
and the availability of faster Internet speeds
to enable them to offer their customers a
shopping experience whenever and wherever
they choose. In addition, an omnichannel
approach clearly shaped the retail industry
in 2019, a sector largely driving ecommerce
sales in the region.
Going omnichannel is tempting for many
retailers who have not yet embarked on their
Digital Transformation journey. However,
implementing an omnichannel strategy isn’t
only about being present on all channels and
platforms available. It is about providing a
seamless and unified brand experience to
customers across channels to enable them
to connect with a brand and simplify their
shopping experience.
A Google report further proves this is the
right approach after the study found that
85% of shoppers start their shopping
journey on one device, like a laptop for
example, and end it on another, say a
smartphone or even a physical store.
While technology is the key enabler
for brands wanting to enhance their
omnichannel strategy, Artificial Intelligence
is another crucial component that is driving
its success. But AI is only a tool and not
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INTELLIGENTCIO
a standalone solution, so organisations
need to understand that while it can be
immensely beneficial in providing customer
insights, it cannot compensate for a modest
or non-existent omnichannel strategy.
In short, AI needs to be a supporting
element of a wider omnichannel strategy
and not being implemented for the sake of
being a hot technology.
When organisations take this approach, the
power of AI can truly be unleashed to boost
sales and customer engagement. Let’s take
a look at how AI can be applied online as
well in brick-and-mortar stores.
• Unlocking data potential: Imagine the
amount of data brands have access to
via multiple platforms. AI can help brands
to process this data to identify consumer
spending patterns, buying preferences,
customer demographics, personal
preferences and so on.
• Personalisation: The best way AI
can help brands is with the power of
personalisation. It allows brands to
communicate with their target
audience at the right time, with the
right product, the right offer and
message, through the right channel.
Brands are able to achieve higher
response rates, increased customer
loyalty and lower marketing costs.
• Image search: AI allows consumers to
search for products based on images
they’ve come across. Shoppers simply
take a picture and get matched to
similar items on ecommerce websites.
A good example is Pinterest which is
leveraging this technology by allowing
its users to select any item from any
photograph online and then throws
up similar items through an image
recognition software.
• Enhancing customer service: Chatbots
are a popular and invaluable way for
brands to offer 24/7 customer service
support on their ecommerce websites.
They simulate human-like conversations
with customers and can execute tasks,
automate order processing and can also
provide accurate answers to customers
about product details, quantities and
shipping terms.
• Generating customer insights in-store:
AI deployed in a physical store helps
capture and correlate in-store customer
behaviour data and shopping preferences
with digital channels like social, email and
mobile app. These insights can be passed
onto the sales associates for cross-selling,
up-selling and strengthening the customer
engagement directly on the sales floor.
The use of AI becomes even more powerful
when combined across all channels.
Organisations that realise its potential will
not only drive sales and improve efficiency
across platforms but will also build a strong
and loyal clientele in the long-run. n
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