For many retailers, 2021 marks a time to consider recent changes and determine what additional technology improvements they would like to incorporate in the coming years using digital acceleration.
Software Advice , 25% of retailers launched an ecommerce store as a result of the COVID-19 pandemic. Many of these companies had planned to do so before 2020, but were forced to accelerate their plans to stay in business when revenue from physical facilities drastically declined.
Retail companies that have recently created or expanded their e-commerce presence are in a position to use this platform to further expand their business. For example, they can leverage low-cost social media to boost business or develop additional services like a robust suggestions engine or personal consulting consultations – things that keep customers coming back for more.
Some stores may even choose to go completely online. While physical stores have their advantages, retailers can use ecommerce to expand their reach and build their brand. At a minimum, all retailers should develop an e-commerce website to offset challenges arising from unexpected events, such as logistics issues, extreme weather events or the latest throes of the pandemic.
New communication methods
Another area where dealers have been forced to change is communicating with customers. Many used certain communication methods for the first time, including live chat, video chat, and interactive voice response (IVR). Many methods have expanded, such as social media messaging, as stay-at-home orders have led to greater use of social media.
Many organizations have focused not just on specific communication methods, but on a combination of them, known as an omnichannel approach. This strategy allows customers to get better service using the channel of their choice (e.g. text, chat, email, or social media messaging) at the time of their choosing, with all information available, regardless of which one they use. . Experienced retailers will continue this trend by further improving their communication methods.
Supply chain improvements
During the pandemic, global supply chain operations have been impacted more seriously than any other area except revenue. Social distancing requirements have slowed production and logistics operations, both critical to meeting customer demand. As companies learned how unpredictable supply networks can be, they rushed to find alternative suppliers in the short term and improve their supply chain processes in the long term.
An ideal supply chain system allows retailers to easily switch to alternative suppliers when their usual ones become unavailable. A robust system that enables this level of flexibility requires the right technology, which can help business leaders identify the status of shipments at any time and quickly switch to a different supplier when necessary. Powerful analytics can further improve supply chain planning by predicting when problems may occur.
To adapt to this new reality, retailers are evaluating their current supply chains and determining weak points to strengthen. They are considering new technologies, including software that tracks shipments, collects and analyzes data, predicts potential problems, and identifies the next best option in the event of a problem.
Increased delivery and collection options
Delivery and pickup options have become much more important to customers. These services not only go hand in hand with e-commerce, but they also became essential during the pandemic, when contact with other people was dangerous. There is less contact now, but customers have become accustomed to the convenience of having groceries and other items left on their doorstep or stopping at the curb to pick them up.
As they add or improve delivery and pickup options, retailers will need technology to support them, including apps that customers can use to easily place orders from their mobile devices. Communication, discussed above, is also important here to convey to customers what the delivery or pickup process involves. For companies with large operations, software is needed to coordinate these activities.
Automated, contactless checkout
During the pandemic, physical locations that have not closed have instituted strict safety standards, such as mask-wearing requirements, frequent cleaning, and physical barriers between cashiers and customers. Another aspect of this process was automated or contactless checkout when possible.
For example, customers can use digital wallets on their phones to enter their payment into a reader at some merchants, eliminating the need to touch anything at checkout. Although not yet common, another process is automated checkout, in which items are added to the customer's invoice as they place them in their basket, completely eliminating the need for a cashier. The following video explains Amazon's version of this technology:
Retailers will continue to explore these options, which will become more abundant as technology advances.
After the Pandemic
Clearly, the pandemic has had an outsized impact on retail operations. As our “COVID year” fades into memory, retail establishments will want to review the changes they made in 2020 and ensure those changes fit with current customer behavior. For example, perhaps an IVR system installed to accommodate many times more calls than normal must be scaled back. Maybe customers are returning to stores and curbside pickup is no longer necessary.
While some technologies may need to be slowed down, some may need to be improved, such as an e-commerce website that can scale along with a company's new internet-driven growth. The key is to determine a vision for the coming years and ensure that any digital acceleration is closely aligned.
