In the era of experiments, innovations, every business is becoming more dependent on digital technology. It is because business owners are now more willing to give their customers a personalized experience that offers their customers a smooth shopping journey, and the business eventually achieves excellent customer retention.
Retail is a fast-evolving industry that affects both retailers and consumers. It is a customer-facing sector and is a witness to the rapid digital transformation of retail segments. It copes up with the current market trend and technological trend to determine consumer preferences. In this way, it gives retailers an idea about customers’ choice, their dislike, and how they shop.
In this article, we will discuss technology-driven changes in retail and learn what benefits retailers have and why technology is so essential for the retail business. Also, we will see and the most important future trends and their benefits in various retail sectors.
Major brick-and-mortar problems that retailers face that drive technology
According to Statista, “In 2021, more than 2.14 billion people worldwide are expected to buy goods and services online from 1.66 billion global digital buyers in 2016.” The above data is scary for brick and mortar stores, but a large group of consumers is still present who only want to buy in a store. Thus, it is the responsibility of store owners to understand how they can empower retail shopping and improve various segments of the business to run better businesses.
For a smooth retail business, you must know what your customers expect from your retail business. When customers enter your store, they want to find the item quickly they need to buy. But also, they want to explore other similar product options. That way, they want to pay items as soon as possible and avoid long billing queues. In short, they expect speed and efficiency, which is possible only by an efficient retail management system.
To achieve this, retailers must invest in technologies to optimize business operations as per need.
How important is technology in the retail segment
With the increasing globalization in the retail industry, the retail sector is now moving towards changing to suit consumer behavior. The industry is now focusing more on its core functionality and adopting technology to manage its business needs. The retail business segment comprises a wide range of retail items that are successfully distributed by the retail owner. Thus, they are now spending more on technology and expanding their digital capabilities to stay connected to market trends.
Retail-based technology enables retailers/brick-and-mortar shop owners to manage and optimize operations. These solutions help retailers increase revenue, improve customer satisfaction, eliminate manual functioning, facilitate quick checkout, and increase retail conversion rates for commercial gains. In this way, technology benefits the retail business in the following ways-
- Technology brings increased efficiency, mobility, and flexibility to the retail business. Through which the company’s ability to respond in the developed market increases.
- The technology collects data according to the buying patterns of the customers and analyzes it to form the correct strategy.
- The technology effectively manages business operations, ensures the most effective use of stock, and improves the execution of business processes.
Highlights of the Retail Tech Report
Let’s have a look at the retail figures given below, which will give you a deep insight into the current market trends. In this way, you will explore the importance of technology in various retail sectors.
- 62% of consumers say they choose to buy from physical stores because they want to “see, touch, feel and try items”.
- 66% of customers say that shopping technologies and innovations have improved their experience.
- 3 out of 5 consumers say that retail investment in technology is improving their experience both online and in-store.
- 63% of customers surveyed were satisfied with the self-checkout system being implemented in retail expenditures.
- 55% of consumers said they are very interested in technologies or solutions that tell them if an item is in stock or not.
- It is estimated that by 2020 – 20% of companies will adopt augmented, virtual, and mixed reality solutions in their digital strategies.
- According to data, 62% of customers expect individual discounts or offers based on previous purchases.
The above data is taken from various user experiences and purchase patterns. It suggests that adopting the right software solution will surely give users a great experience. It will take a step towards cash-less payments.
Impact of Digital Technology on Retail
Brick and mortar retail stores will have to work hard to compete with the current market trends of online shopping. Better use of the digital platform creates a great in-store experience for both business owners and customers. Digital technology has sent many innovations to optimize retail business. Using these ideas, they optimize business inventory, billing procedures, and checkout processes. Also, they get the right method to increase business loyalty.
Benefits of using technology in the retail segment
The implementation of technology in retail segments shapes how consumers establish contact with retail stores. It also determines the possibility that the same user will become a stable customer in the coming future or not. The following are some benefits of using technology in the retail industry that changes the retail landscape.
Handles better supply chain management
One of the most vital business areas in any retail business is the management of its supply chain. Retail-based technology provides supply chain management, which is considered as a key component of productivity enhancement. It improves efficiency and accountability throughout the supply chain and renders real-time visibility and tracking of goods. In this way, the integration of technology into supply chain management ensures the following benefits:
- Operating cost reduction
- Improved efficiency by eliminating errors
- Increase customer satisfaction
Improves in-store inventory tracking and reduce inventory costs
Inventory is the center of any retail trade. Effective inventory management handles the inventory operations, manages returns, and improves them. Using technology to improve inventory gives retailers a platform to analyze data and find out the exact stock availability. In this way, technology into inventory management ensures the following benefits:
- Optimizes inventory and reduces its maintenance cost
- understands customer buying patterns
- Predicts future demand
Reduces shrinkage and fraud
In retail outlets, shrinkage and fraud from customers or employees are common and also a challenge. The use of technology increases the visibility of inventory items and facilitates tracking. Through technology, retailers have complete control over their business. They get the facility of real-time data updation , through which they get complete details of any stock in real-time. In this way, the technology protects retailers from any kind of data shrinking and fraud.
Optimizes product placement
Technology provides users efficient inventory management. It streamlines all the operations related to managing inventory and know in-stock and out-stock products. Also, it evaluates the customers’ buying patterns to know which product is selling more and which is not. With these analytics, the system arranges the products in order so that the store owner can determine the stocks as per preferences.
Provides a better workflow for in-store staff
With the help of technology, retailers can easily manage their employees and their workflows. It gives business owners the idea of optimizing retail operations and assigning work to their employees based on their efficiency. In this way, the owners get the best input from their employees and easily customize their in-store employees. With this, the customers get a better experience because they do not have to wait.
Helps to create personalized offers and promotions
Technology offers its users many marketing techniques to attain a good place in the market. It includes engaging techniques. The system evaluates customers’ preferences and creates strategies that are the best among the respective market trends. It plans loyalty programs, offers, and discounts to its valued customers based on business needs and helps the revenue to grow.
Wrapping Up: What can SwilERP offer to its valued customers?
Technology has already transformed the retail industry beyond anyone’s imagination. It is now up to retailers how effectively they use it in their business. But as a retailer, it is also your responsibility to go for a software product that is well organized and has a long list of happy customers.
SwilERP is a smart software solution for all retail segments. It is beneficial for all types of businesses- small, middle, and large. It has all the possible features that handle retail/wholesale/distribution segments efficiently. It streamlines operations and gives any retail business a new way of running the business. If you have more questions, you can visit our website or call us. Our team will help you as much as possible.
