The retail industry has been the hardest hit by COVID-19. Companies have had to quickly re-engineer their business processes to adjust to the new digital reality, in which consumers have avoided shopping at traditional physical retail outlets. However, simply going online has not proven effective enough to retain customers.
Specialists from LeverX, an SAP Gold Partner, studied how trends affected retail business efficiency and concluded that the clever use of modern trends could help retain existing customers and increase sales by attracting new ones. Let’s find out how.
Customer-centricity
Customer centricity remains the top priority for companies operating in retail. It is also worth mentioning that customer orientation directly impacts the efficiency of procurement management: companies with a customer-oriented approach have more power in successful collaboration between buyers and suppliers and effective spend management, which helps them gain better market performance.
You can ensure all of these with SAP Ariba. Whatever the industry, SAP Ariba handles significant issues related to the procurement process. With its features, you can faster transaction cycles, reduce operational costs, improve order processing accuracy, and increase customer retention.
Artificial Intelligence
Artificial intelligence technologies are spreading more and more, covering new areas, including retail. Technology is already helping retailers to engage consumers and satisfy all their needs, reduce costs and increase profits, strengthening their position in a highly competitive environment.
The Gartner reports show that 77% of retailers are interested in introducing AI into their business processes. And here are some ways how retailers can use this technology:
- AI-based chatbots. Today, these chatbots provide the highest quality customer service, such as sending notifications about newly released products and discounts and even suggesting those products in which consumers can be interested.
- Price Forecasting. AI can help companies estimate prices for goods in short supply but high demand, resulting in increased sales. As for benefits for customers, AI notifies them that the price of a particular product has dropped to its lowest level, encouraging customers to make a purchase.
- Search by image. Customers can upload a picture of the desired product, and the AI will find a similar item in your store.
- Online fitting room. The users can enter their clothing/shoe size, and the system will find the perfect outfit in minutes.
AR/VR
According to Shopify, AR content has a 94% higher conversion rate than non-AR content. Thanks to AR/VR technologies, retailers today can:
- Simplify online shopping by ensuring online interaction with goods.
- Provide contactless fitting.
- Improve navigation in offline stores.
- Make personalized offers.
Voice Commerce
Voice recognition is not a new technology. However, its effectiveness cannot be diminished: according to a Microsoft report, 72% of people use voice search, and many companies continue to increase their investment in voice marketing. Nowadays, voice commerce delivers a hands-free online shopping experience to the masses. It is easier to describe a product using a voice assistant than manually entering information about the desired item. Besides, voice search makes your company’s app more inclusive by opening access for visually impaired people and other people with disabilities.
Personalization
Personalization is one of the main trends in retail, and its primary goal is to make customers feel special, which will strengthen their loyalty and improve their shopping experience. According to statistics, over 80% are more likely to purchase from a brand that offers them a personalized experience. Therefore, retailers need to pay special attention to this trend.
For example, SAP offers a CRM solution designed to automate sales, marketing, service, and e-commerce processes. Its features allow companies to analyze customer behavior, identify the target audience, create a personalized experience, manage customer data, collect customer data from various sources, and track orders and related data.
Whether you want to start the digital transformation with the SAP solution or seek assistance in developing your own solution from scratch, you need a reliable technology partner. LeverX Group has 19 years of experience in software development and is ready to accompany your company throughout the digital transformation process.
