Decide to go with the digital transformation plan?
Nice move. Retailers like you should go with a digital transformation now.
Be ready to face some initial challenges like infrastructural issues, data privacy matters, change management, etc. Everything falls into place nicely when you focus more on your data. Following the data-driven path matters here the most to make the transformation smooth and functional.
We are going to discuss here how we can be prepared for a smooth digital transformation for your retail business in this blog. We'll mainly focus on how to be data-driven during and after the transformation phase here.
Before jumping to the strategies, let's just talk about how your retail business can benefit from digital transformation.
Advantages of digital transformation to retail
Also, the transformation to digital retail involves more than just the tech stack. It is also about rethinking and reorganizing the way retail businesses work.
Enhance customer experience
Struggles to deliver an enriched customer experience are the core reason behind the digital transformation. Digitization addresses customer issues in a personalized manner that helps companies experience better results regarding customer experience. AI is now involved in the retail business to a large extent. All because of delivering a better customer experience.
Omnichannel integration
Digital transformation in retail also opens up doors for online and offline integration via omnichannel techniques. Connecting customers through multiple channels ultimately helps your brand reach out to customers in multiple ways. On the other side, omnichannel helps retailers keep all customer data in one place for better interaction and management.
Reduce costs
Digital transformation helps retailers save money as it automates most of the manual tasks. For example, AI is now handling most of the retail tasks, like handling customer queries, working as a sales agent, assisting customers throughout the buying journey, etc. Besides AI, the retail sector also adopted cloud technology that reduces the dependency on physical infrastructure. All adds up to reducing costs and increasing the efficiency of the system.
Boost the supply chain
The retail sector got a boost in its supply chain system with the incorporation of digital transformation. Modern technologies like Blockchain, IoT, etc, allow tracking the supply chain better and provide more visibility. Transformation into digital space has made the entire thing transparent and secure, especially transactions processed in the supply chain.
Increase agility & innovation
The best part is that the agility of retailers to adapt to new things has increased and overall improved. The retail sector is now more open and evolving to new changes. With the integration of digital transformation, the sector becomes more agile than ever. Most of the retailers that want to integrate innovation into their systems are going through a comprehensive digital transformation.
All you need here is the right strategy to bring digital transformation into your retail operations. Let's now see how you can do that.
Data-driven strategy for retailers for digital transformation
Accurate data is the spirit of digital transformation in the retail sector. To boost online presence via the digital shift, retailers have to collect and process data in the right order, along with the right strategy.
Being proficient at bringing data-driven tactics into business operations requires proper strategy and execution. Even before that, you need a reliable flow of accurate data into the operations. The data should be collected from website traffic, social media engagement, email open rates, online transactions, and other in-store operational data. Assessing these data can fasten the digital transformation and improve your brand's overall operations.
Besides operational efficiency, a data-driven strategy also helps manage risks and improve overall customer experience. Let's now see how you can prepare your retail business in a better way to incorporate digital transformation.
Evaluate your database
Understand the current state of data in your operations first.
The whole framework of assessing the current data state comes with a few sub-sectors. These are – assess how you're capturing your data, how you monitor the data collection, evaluate the process how you store your data, etc. Assessing all these areas can help you find gaps in your database, if they exist.
Facts to note:
Nearly half of the data professionals (45%) struggle with poor quality data when they work. Most of the time, the issues they face are related to inaccurate, incomplete, and inconsistent data.
Once you find the data gap via evaluation of your current data state, you can avoid all losses. Evaluating your database provides you with insight into the situation where you are right now and where you want to be through the digital transformation. Everything will come out loud and open.
Make a data management plan
Maintaining the quality of your data is absolutely important; otherwise, your digital transformation strategies won't work as much as you expected.
Here, preparing a data management plan can work best for you. It mainly consists of these things;
People: Get the best people to work for you, manage your data, and bring accuracy into your system. People play a crucial role in handling the data operations and bringing the best practices into the operations.
Process: The flow of data depends on your process or the system you're using for data operations. The ideal data process is something that should make the data operation easier, faster, and come with better ROI.
Tools: To make people use the process, you need tools. Your tools should assist your people in implementing the best strategy to manage data. The tech stack should be friendly and intuitive for your people to use for the operations.
Apply only trustworthy data
Bring the best methods to incorporate digital transformation into your retail business when you have reliable data. During the course of the digital shift, you must rely on quality data only. Ensure that you're following proactive data quality strategies to bring digital transformation to your retail business.
