Top Five Digital Transformation Trends In Retail 3/15/19, 2)27 PM

51,347 views | Mar 14, 2017, 03:25pm

Top Five Digital Transformation

Trends In Retail
Daniel Newman Contributor
CMO Network -
Exploring all things Digital Transformation

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This week, I launched a new series focused on the biggest digital trends
impacting various industries. First up was healthcare, where technology is
gifting patients with greater access to quality care through telemedicine—and
arming caregivers with even more life-saving tools like wearables, predictive
data, and the Internet of Medical Things (IoMT). Now we move to retail, where
a similar wave of empowerment has hit the industry—this time, on the side of
consumers.

Whether retail is ready for it or not, consumers have become hooked on the
real-time, personalized world of the modern digital landscape, and they expect
their retail providers to follow suit. Today’s digital consumer is a demanding
beast. They want what they want, and they want it now. (And that’s just today’s
shoppers; don’t even get me started on Generation Z, which is actually expected
to become the next big retail disruptor.)

Today’s retailers have never had more demands—or more opportunities—to

reach their customers in new and exciting ways. Retailers are no longer selling
things. They’re selling the experience of buying those things. And it better be a
good one. Says one writer, “We can no longer be a little bit digital.” It’s an all-
or-nothing train, and retails who refuse to hop on now will be left behind. The
following are a few of the biggest technologies currently impacting the industry.

Mobile

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I still remember the first time I learned I could walk up to any associate—
literally anywhere in Nordstrom Rack—and pay for my purchases. Now that
seems like old hat, with Amazon Go offering customers the chance to purchase
items without checking out at all. Today’s opportunities in mobility run the
gamut from mobile-armed sales staff to mobile-enhanced product reviews,
mobile-responsive websites, and discounts on demand via apps while shopping
in store. A recent study showed 82% of smart phone users consult their phones
in the store while deciding what to buy. It makes sense that those shoppers can
now use mobile pay—from a growing number of providers—while they’re at it.

Mobile wearables are also shaking up the digital world. Now customers can
walk stores with virtual reality (VR) goggles and try on items without ever
touching them physically. Not only is it faster and easier—it’s fun for the
customer, and one more way to get him or her in the digital or physical door.

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Smart Beacons

Another smart way to capture customers: smart beacons. Smart beacons work
with Bluetooth to alert retailers when customers are in the vicinity of their store
or signage so they can communicate with them at a targeted time or range. In
fact, smart beacons take targeted marketing to a whole new level. What better
time to send a customer a coupon or discount code than when they’re standing
outside your door?

Smart beacons also allow for immediate data collection to determine the
effectiveness of one’s marketing campaign. Do promos usually work better at a
certain time of day? Among certain age groups? With certain product types?
With smart beacons, retailers no longer have to guess—or devote tons of time,
money, or analysis—to finding the answer.

IoT

I don't think a digital transformation article sans Internet of Things is

acceptable these days, so I'm including it, but not for that reason alone. With
6.4 Billion IoT devices currently and an expectation of more than 50 billion by
2020, much like the smart beacon, all of the data that is being produced from
our "Things" will become high impact consumption data that retailers will be
able to utilize to personalize shopping experiences and put the right products in
front of the right people at the right time.

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Future Retail Model via Futurum Research FUTURUM RESEARCH

Artificial Intelligence

We can’t mention data collection without also mentioning artificial intelligence

(AI). Grounded in both big data and automation, artificial intelligence is
allowing retailers to understand their customers’ personal preferences and
anticipate their needs and purchases before they do themselves. And in today’s
world, retail is all about personalization. AI is the powerhouse that
recommends products you might like to try … sends coupons for things you’ve
already purchased … and in some cases, even redesigns entire web home pages
instantly based on user social media profiles. AI also allows for even more
streamlined loyalty programs, replacing archaic and clunky human tracking
systems with real-time sensors and buying history to reward customers for
loyalty as soon as they click “buy now.”

That’s not all. In the future, AI will likely replace human consultants in the
retail world. Shoppers will no longer waste their time searching for an expert on
the floor. AI can be an expert in everything, helping shoppers find exactly the
product they need, be it the right wine for dinner, the right computer for their
profession, or the most flattering clothing for their body type.

Virtual And Augmented Reality

One of the biggest hurdles of getting customers to buy online is that many
shoppers prefer to hold, touch, or try on their purchase in real life. Both VR,
mentioned briefly above, and augmented reality (AR) are helping to close the
gap on that problem by empowering consumers to “experience” the object
without ever holding it in their hands. While many consumers still lack access
to VR or AR tech, it’s clear that the technology holds tremendous potential,

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especially for those who live far away from the object they are hoping to
purchase. Imagine test driving a car or purchasing a new home without ever
even stepping inside. VR will make it possible.

As with every industry in this era, it’s important for retailers to embrace
change. Not all technologies will be right for their product or clientele, but if
they design a flexible digital strategy, they’ll be better equipped to try new
technologies as they come along—which is, essentially, exactly when their
customers want them.

In the interim, we’ll likely see many retailers continue to struggle with an “omni
channel” existence, trying to determine the perfect balance of physical presence
and digital touch. It’s not a new problem, but it’s one that will continue to
evolve in challenging and exciting ways as the digital transformation continues
to unfold.

Additional Resources On This Topic:

How the IoT Will Change Retail

Four Technologies that are Changing Everything for Retailers

Amazon GO Set to Disrupt the Retail Shopping Experience

Virtual Showrooming, VR, AR, and the Future of Retail

Daniel Newman is CEO of Broadsuite Media Group, principal analyst at

Futurum and author of Futureproof.

Daniel Newman Contributor

I am a principal analyst of Futurum Research and CEO of Broadsuite Media Group. I spend
my time researching, analyzing and providing the world’s best and brightest compa...
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