industryopinion
Customers before code
John Godwin, VP of UK retail, Intellias discusses the key to successful digital transformation in retail.
I
n the face of tough trading conditions and rapidly changing consumer habits, retail organisations worldwide have been investing in digital transformation to increase efficiency and
competitiveness. Despite the growing role of technology across the industry, however, many retailers are falling into the trap of prioritising technology over their customers’ needs. Indeed, putting code before the customer can result in
a variety of business problems, from wasted resources and ineffective solutions to loss of customer loyalty. Moreover, retail brands that lose the human dimension of their customer relationships can also experience reputational damage and risk long-term growth by failing to address actual customer pain points or desires. To mitigate these risks and ensure digital transformation
delivers a win-win for retailers and consumers alike, vendors should be looking to strike a balance between technology investments and customer-centric strategies. In particular, they should consider the following questions: • What are the current customer needs and expectations, and how can digital transformation address them?
• How can they ensure their digital transformation efforts prioritise customer experience and satisfaction?
• What technologies or processes can help them differentiate their brand in the market?
Tese are important considerations because, clearly, customers are at the heart of any retail business, and understanding their needs and expectations are vital elements in any digital transformation strategy. To help provide useful and actionable answers, the starting point is the process of gathering accurate information as the basis for building stronger relationships and creating more effective and personalised experiences that differentiate the brand. Te challenge here – especially in a period of tight budgets
and careful spending – is that many retailers have a finite ability to conduct extensive customer insight work. Despite this difficulty, valuable information can be obtained through cost-effective methods such as feedback from frontline staff, call centre outreach, and through in-store surveys. By implementing iterative feedback processes, businesses
can continuously improve the overall customer experience and ensure they are meeting their expectations. Armed with this
14 | June 2023
insight, organisations looking to adopt a ‘customer before code’ approach must also be prepared to challenge their mindset and assumptions about what customers truly desire. Another area that retailers need to address is the temptation
to make big bets on a single technology or process. Instead, they should concentrate on carrying out proof of concept exercises, which allow them to spread their investments across various technologies and processes. By diversifying their investments in areas such as content creation, back-end systems, and personalisation, retailers can significantly enhance the customer experience and ensure their digital transformation efforts are successful. As part of this process, choosing the right technology partner
is crucial. Retailers should look for partners who share their ambition and support iterative development, enabling quick wins and continuous improvement. Tese decisions should be based on the core ambitions that the business has, but also on developing a way of working that means the retailer can embrace a more iterative development strategy rather than spending major sums on a huge transformation programme. In practical terms, digital transformation should enable
retailers to provide excellent customer experiences by ensuring fast delivery, easy returns, and setting realistic expectations. It’s crucial, for instance, to balance marketing slogans and brand credibility with actual delivery capabilities, while many retailers also need to work much harder on improving the findability and searchability of their products, as these factors significantly impact the overall customer experience. What use is a great- looking online experience if customers can’t find what they need? Tere’s no doubt that today’s savvy shoppers know that there is a wide range of options available and will quickly look elsewhere if the experience becomes frustrating. Clearly, the sector is experiencing an ongoing period of tech-
led innovation and change, and emerging technologies such as generative AI will play a significant role in the way customer relationships and interactions are handled going forward. But in the long term, the retail industry’s future lies in embracing digital transformation while continuing to prioritise customer needs and expectations. Tose brands that strike the right balance will be ideally placed to deliver sustained growth and success in the years to come.
www.pcr-online.biz
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