Retail
competitors as they scrambled to catch up. With another global economic shock on the horizon – this time in the form of a recession – retailers should now prioritise their digitalisation strategies. Of course, the pandemic and impending
recession are two global events that affect all businesses across all industries. But there are hundreds of social and cultural trends constantly impacting retailers. Even behemoths like Amazon are facing disruption as more businesses bypass generic marketplaces – instead making the most of social media, gig-economy logistics and micro-finance marketplaces such as Klarna. Look at it this way, if the rise of TikTok shocked you, imagine what might be coming a year from now. It’s both exciting and daunting in equal measure.
How can data be utilised to drive business outcomes and better customer experience in retail? First and foremost, retailers need to remember that collecting data doesn’t make them intrinsically smarter. Used correctly, data is instrumental to
completely integrated, strengthened, and changed, as the retailers’ strategies and maturity evolve. Given that the role of data in retail is so
instrumental to master, it is worth highlighting how composable commerce is the enabler of a truly cohesive and connected data strategy. Composable commerce, with its ability to orchestrate journeys across all commerce channels, enables retailers to activate data across all touchpoints, all while they collect to create a comprehensive view of market preferences, needs and expectations. Tis is especially relevant for D2C business models, where retailers should value data and market insights as highly as the revenue the channel create. At the risk of sounding too philosophical, we
building personalised experiences and thereby ensuring relevancy. But many retailers struggle to cross the bridge between data collection and data utilisation. Te reality is that there’s no quick fix here. Tat’s why we work closely with retailers to enable data-centricity, where cross- discipline, multi-function teams can turn data-derived insights into valuable-creating experiments. A series of test-and-learn strategies is the best way to drive fast, accurate outcomes. One business model where effective data use is crucial is
“Used correctly, data is instrumental to building personalised experiences and thereby ensuring relevancy.”
in your D2C strategy. Data will uncover hidden insights into market preferences and customer behaviours, enabling retailers to strengthen their digital services, product offerings, customer relationships, and ultimately the bottom line. When you look at it this way, it’s easy to understand why businesses that takes advantage of data are leaving their competition in the dust.
In particular, why are we seeing more retailers adopt composable commerce into their commerce strategies? Put simply, composable commerce enables businesses to build the commerce infrastructure they want and need – rather than being stifled by the limitations of off-the-shelf, and end-to-end, platforms. If you’re not familiar with the concept, you can think of it as discovering Lego aſter only ever being able to play with Playmobil. Each part of a composable commerce solution is the equivalent to
an individual Lego brick. Each part represents a core digital ability retailers need to master. With composable commerce, retailers can, by re-configuring these parts, orchestrate multiple digital strategies simultaneously – through their own channels, third party partnerships, marketplaces and more. Tese digitally enabled strategies can be
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always try to convey to our clients that ‘going composable’ is about more than adopting a new technology architecture. It’s a mindset. For retailers, success hinges on building a set of operating models and frameworks that enable them to act in iterative and more value-centric ways. With these models in place, retailers can thereby respond quickly to the market – both the insights they’re now provided, through their customer data, as well as new trends and opportunities from shiſting expectations and demographics. In short, enable retailers to use this commerce infrastructure as a competitive edge, to win when there are emerging market opportunities.
How is the intersection of physical and online shopping driving customer expectations? Aſter the pandemic-driven ecommerce boom, in-person retail is bouncing back. In this new environment, retailers are having to balance the post-lockdown appetite for in-person community and socialisation with ongoing digitalisation initiatives. Part of this means deploying more digital solutions to encourage shoppers into brick- and-mortar stores. Tis includes personal AI concierges, touch-free interfaces and the use of mixed reality. We’re also seeing the rise of ‘retailtainment’ – retail experiences that are designed primarily with entertainment and community-building in mind. To create effective physical and digital retail experiences,
businesses must understand the difference between ‘fulfilment’ and ‘shopping’. Fulfilment hinges on customers walking into stores knowing exactly what they need – and retailers giving it to them as quickly and conveniently as possible. Whereas shopping is about creating memorable experiences and enabling customers to discover new products. Catering equally to these two groups of consumers will be crucial
to retailers’ success in the coming years. To be successful, they’ll need to gain a deep understanding of their customers, while also transforming their mindset, processes and structures to support continuous innovation. All this needs to be supported by the right tech strategy.
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