As the digital revolution transforms the consumer experience, retailers can gain an advantage by leveraging big data. This will also help them increase customer satisfaction and drive economic gains. The retail industry has invested decades in understanding its customers, and big data is a powerful tool for transforming the consumer experience. Mckinsey’s Simon London explains the impact of these changes in his recent book Retail Digital Transformation. Using big data, retailers can improve brand management, supply chains, and customer engagement, and regain the consumer’s loyalty.
As retailers implement new technologies, they need to identify nonnegotiable service and experience elements. These nonnegotiables include no-contact payment methods, new security requirements, and employee hygiene processes. They should also focus their workforce in high-priority areas. In addition, store hours will need to be adjusted to suit these new business models. Additionally, some retailers have begun to move elements of the customer’s experience outside of the physical store.
The pace of change will force retailers to review their current omnichannel strategy and identify gaps that can be filled with new offerings. They must also integrate these new additions with existing channels to create a consistent experience. Once they identify the missing pieces, the next step is to design a more flexible, agile operating model that emphasizes customer centricity and an improved customer experience. If these three steps are implemented successfully, retailers will achieve the retail digital transformation they need.