Let’s Talk Digital Transformation in Retail
The retail industry is evolving.
The COVID-19 pandemic forced many companies to adopt new technologies—and consumer activity has shifted as a result. Meanwhile, retailers are moving increasingly online.
This post will explore the complexities of running a retail business today (and let brands in on how they can work digital transformation to their advantage).
Benefits of Digital Transformation
Retailers have long embraced online sales.
The reason is simple. By leveraging digital channels, these companies can bring in new business. According to McKinsey, the right investments can:
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Boost digital goods and services’ time to market by a factor of three.
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Reduce run costs by up to 20%.
These improvements will increase responsiveness, improve company performance, and elevate revenues. The benefits are truly massive.
Technology Trends for Retailers
It’s no secret that the retail digital transformation industry is growing.
In 2022, the sector was worth over USD 596 billion. It’s slated to increase at a compound annual growth rate (CAGR) of 19.3% from 2023 through 2027, reaching 1,439 billion that year.
This significant growth is the product of several digital trends:
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Multichannel Presence
The most successful retailers give consumers a seamless experience across multiple touch points. From ecommerce sites to mobile apps, customers should be able to choose where they engage with the business.
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Cloud Computing
This technology lowers IT infrastructure and storage costs—instead giving retailers real-time access to operational data. The benefits include seamless inventory management, better data security, and more.
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Big Data
In retail, big data analytics can easily predict trends and inventory needs. Finally, retailers can leverage the stock keeping unit (SKU) information they need to stay competitive.
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Digital Payments
Few innovations have simplified the shopping experience like digital payment solutions. This tech lets retailers gather vital customer data—all while offering convenient and secure payment options.
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Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML have revolutionized retailers’ operations—allowing brands to automate tasks, optimize pricing, and improve the customer experience. Chatbots and data analytics are just the beginning.
With these retail technology tools in your arsenal, you’ll be on the path to digital transformation in no time.
Learn More with Metriko.AI
Do you have questions about the future of technology in retail?
Connect with our team to learn how digital transformation can support your business.