Red Ant research flags retail technology investment priorities
A survey of 100 UK retailers by Red Ant reveals their highest priorities and most pressing tech challenges since March 2020.
38% have invested in sustainability strategies and 45% rank clientelling as a ‘priority’.
The biggest challenges are data management and integration (25%), finding the right skills (23%), and confusion over which retail technologies to implement (21%).
The survey, conducted by Red Ant at Retail Technology Show last month, assessed retailers’ tech investments since the pandemic started.
44% immediately adjusted retail processes within six months, a further 21% within 12 months, and 17% not urgently, while 18% remain in the planning stages.
37% marked data as a priority – either analysing data for actionable insights or data integration.
But while 92% of retailers have a data strategy, 49% claim their data strategy is clear but not widely understood across the organisation - a potential blocker for successful digital transformation.
And 39% of retailers lack confidence in the quality of their data, saying it’s adequate but could be improved. 20% even said they weren’t sure or didn’t believe their data was suitable for analysis.
When asked about their retail tech implementations, 82% acknowledged the value of clientelling, with 45% of respondents saying it’s a current priority for them. 38% said they’ve invested in sustainability, 24% in frictionless payment systems, and 21% in omnichannel strategies.
20% have stumped up cash to leverage their data and analytics to optimise store performance. Despite the hype around experiential, augmented reality and social commerce technologies, these were invested in by only 9%, 15% and 10% respectively.
Retail tech priorities, however, almost unanimously focus on omnichannel approach and data management. 40% said an omnichannel strategy was their main priority.
Some retailers are lagging in adopting a strategy that can deliver long-term CX benefits. 24% confirmed that they have ‘a well established omnichannel strategy that works with collaborative tools and platforms and goes beyond multi-channel’.
49% agreed in part but said that it could be better. 27% are still planning or have no omnichannel strategy.
Retailers’ customer data is vital to making intelligent decisions. But while 65% made rapid tech investments within 12 months, 17% were unsure if their data was GDPR compliant, although 81% said it was.
Sarah Friswell, CEO at Red Ant, says: “These results tell us that whilst the majority of organisations say they have invested in retail tech since the pandemic began, this will provide only short-term value if their data quality and management isn’t where it needs to be.”
“With a large proportion saying that they need to improve data capabilities, too many retailers are considering improvements without having a clear and well-communicated data strategy.”
“Retailers are prioritising long-term gains for the planet by focusing on sustainability initiatives which echo consumer values. However, they need to think long-term in realising value from their data and keeping customers truly happy with consistent customer experience across all channels.”
“Retailers must be certain of their data quality, compliance, integration, and management to make the most of any retail tech investment. Making retail tech investments that will benefit retailers in the long term and take advantage of their data is vital to compete in this tough digital landscape.”
She concludes: “If they invest in knowledgeable store associates who are empowered with the right customer data and the right technology, retailers will ensure they can create remarkable and consistent customer experiences for customers, online and in-store.”
