How the digital era and technology are changing retail businesses
The popularity of traditional bricks and mortar stores is slowly declining. Consumers are continuously looking for enhanced experiences and convenience.
Today's digital world has made it possible for many retailers to answer these needs by taking their business online and by incorporating bespoke technology and other modern digital trends into their processes to offer consumers an improved and more advanced way of shopping. These trends include e-commerce stores, mobile applications, fulfilment automation, extended reality, and image tagging services..
To stay relevant and evolve with the times, businesses are increasingly putting more capital into technology. They are investing in innovative software development projects and hiring experienced tech professionals. If a retail business wants to stand out today and stay relevant, but is struggling to develop and implement innovative new technologies in-house, it should be looking into outsourcing bespoke software development company to take its business forward.
Let's take an in-depth look at how digitisation and technology are changing the retail field.
How modern digital trends and technology are changing the retail industry
Many of these new technology developments are still being experimented with but it is clear that it is the future of the retail industry.
E-commerce
Probably the biggest change for retail businesses in recent years came in the form of e-commerce. No longer do retail businesses have to open physical stores, as everything can be done online – from the sales of products and services to after-sales customer service.
However, it has to be said that with more businesses moving online, the competition is growing. Retail businesses who want to stand out online and climb the search engine ranks quicker, need to invest in innovative web development and possibly look into hiring a bespoke company that specialises in web development.
Mobile applications
Mobile applications have also changed the retail industry significantly. Businesses can now invest in applications that allow consumers to shop on the go. These applications typically work on any mobile device and allow consumers to browse and buy products and services usually at any time during the day or night. This is boosting the revenues of businesses significantly as they can keep their 'doors' open 24/7.
Extended reality
A technology which is still being experimented, but which is influencing the retail industry greatly is extended reality. This includes virtual and augmented reality (AR). Virtual reality allows one to experience a real-world environment through specific devices, while AR in retail produces an interactive experience through a mobile device.
These new types of technology are changing the retail industry fast; From trying on new clothes in virtual reality to seeing how a specific product will look in the real world by 'scanning in' the item on a mobile device.
Artificial intelligence (AI)
The intelligence demonstrated by machines is referred to as AI. In the business world, it involves automating certain processes through the use of machines. It aims to help businesses to save costs and to improve consumer experiences. One way AI is used in the retail industry is by creating cashierless stores. This eliminates cashier staff and reduces checkout lines.
Fulfilment automation
A type of technology that we will see evolve in the coming years is fulfilment automation. Businesses will move away from employing staff to fulfil orders, and will invest in automation robots in warehouses that take over the entire process: from receiving the order, taking care of the packaging and sending the order out.
Mobile wallets
Mobile wallets have been around for a couple of years now, but have mostly been used by financial institutions and the cryptocurrency industry. However, increasingly more retail giants are looking into this space to improve the payment and checkout processes.
A mobile wallet is a payment solution that allows consumers to buy products and service without using physical money or a card, but rather through one, easy-to-use, secure mobile application. Mobile wallets also make it easy for retail store owners to add special discounts on products and services.
They offer plenty of benefits, but can be complicated to develop such an application. Business who want to incorporate a digital wallet should look into a custom software development company who has experience in the field.
Digital marketing
The days of advertising in magazines and newspapers are long gone. Businesses have realised that their customers and clients are all online and, in recent years, they have started to implement digital marketing to reach them.
This type of marketing utilises online-based technologies to advertise and promote products and services. It can include search engine marketing, pay-per-click advertising, affiliate marketing and email marketing. Digital marketing may not be a new phenomenon, but it is changing all the time.
Predictive analytics
Bespoke software has made it easy for businesses to obtain predictive analytics through valuable data. This data is typically gained through websites, mobile applications and digital marketing campaigns and is usually focused on consumer behaviour.
It includes demographic data, clicks and navigations path data and buying activities. These details produce insights that retail businesses can use to tailor products and services to enhance customer service and to target and retarget potential customers.
From current tech trends, it is evident that the retail industry is moving away from everything physical, from physical stores to actual staff, to a more digitalised environment. This not only enhances consumer experiences but also improves the way retail businesses operate.
What does this mean for existing bricks and mortar stores?
Bricks and mortar stores are closing left and right, but many retail giants still want to keep their physical doors open. Any such businesses who want to stay relevant should revolutionise the way they attract consumers.
Consumers are after excitement and convenience, therefore, physical shopping should move to a more stimulating and interactive experience. Luckily, there are plenty of new tech developments, such as AI and extended reality, that can be used to ensure they keep their doors open – for now.
Final takeaway
The world is evolving fast and technology is infiltrating every sector of our lives. For the retail industry, there are countless new and exciting digital and tech trends that are changing the way consumers interact with businesses and vice versa.
In 2020 and going forward, any retail business who wants to survive the modern world needs to implement new trends. These trends all exist to answer the needs of consumers: To have an enhanced and convenient shopping experience and, in return, boost revenues for businesses.