By Derek Corrick, General Manager of Data Management, Pivotree
While Canadian businesses should be focused on shifting from survival mode to growth mode, many still find themselves working against tough economic times, and, largely due to their inability to adapt to modern ways of shopping, are faced with a wave of increased insolvencies. Regardless of the industry, modern solutions like artificial intelligence and automation have become increasingly important in an organization’s operations. To maintain a healthy and successful business, leaders must adapt their business to the latest landscape and ultimately, provide consumers with the seamless shopping experience they seek.
Coming out of the pandemic and faced with inflation, consumers changed their shopping habits and their expectations. While there were shifts in buying behavior as a result, expectations have remained high for a frictionless experience. Historically, customers prioritized quality service and fair pricing above all. Now, they expect more out of their shopping experience – personalized interactions, seamless shopping, proactive service and consistency across digital channels have become the norm for the modern consumer, with many considering the experience just as important as the product or service they’re paying for.
In a survey conducted by Pivotree and Canam Research, only 39% of commerce business leaders said that their commerce strategy and tactics were “definitely keeping pace” with changes in customer behaviour. How can the remaining 61% increase their chances of surviving and thriving, both now and in the future?
Start with clarity on value to customers.
Now more than ever, retailers and businesses need to be incredibly clear on the value they provide customers and to ensure they are delivering that value quickly, at scale, and with minimal costs. This is where technology can be leveraged most effectively to serve both the customer and the retailer’s bottom line.
The Find Buy Get Trust model remains king with Keep as the new heir.
To create a frictionless experience that addresses customers’ current and shifting needs, organizations must first look at how data, supply chain, commerce technology, and digital solutions work together holistically. Let’s look through the lens of the Find Buy Get Trust model.
For “Find” to be frictionless it goes beyond the basics of search and discover – it involves a relationship with your customer and an understanding and anticipation of customer needs. Canyour customers find the items they’re looking for? Do their search parameters match up to the attributes on your site?
The “Buy” aspect of the value chain is vital. Whether your customers buy online, in-store, or through a distributor, the right commerce platform enabled with the right product data will ensure a smooth purchase experience. With data, supply chain data, and commerce technology seamlessly integrated the buyer experience is enhanced. That’s where “Get” comes into play. Whether a customer wants to try a product before they purchase, buy online and pick up in store, or ship to a locker, customers want to receive their products in a variety of ways. And they want to understand when they can expect to get the product.
Lastly, being able to fulfill a customer’s desire builds “Trust” in your brand and ultimately, will enhance lifetime value. Trust is built through engagement. Leveraging data to drive trust both in-store and online will help your customers find, buy, and get the products they want, as well as ensure their financial and personal data are safe and secure.
While this model has remained essential in the retail space for decades, “Keep” is a newer part of the model that has become increasingly important for a retailer’s bottom line. Returns cost businesses a lot of money. Even if the item is returned in good condition, the entire process is costly because of the required labour, transport, and inspection; and that’s not even considering the environmental impact. While streamlining returns and making it easier for customers is important, returns have become a big challenge for retailers. Many consumers now tend to over-purchase and return products that they don’t want or need, creating a surplus of products that can become hard to resell. Navigating how to get customers to keep what they buy must also be considered when assessing the health and future of a retail business.
Technology is only a part of the system, and data is at the heart of it.
When talking about ‘future-proofing’ a business, many immediately think of technology. However, technology is only part of the problem. Oftentimes, when a business is struggling, retailers look to new technology solutions to resolve their issues, when really (in a lot of cases), the problems they’re experiencing are symptoms from a lack of data quality, consistency, and completeness. Before any organization can implement meaningful technology, they must invest in optimizing their data first. From helping retailers find efficiencies that reduce costs, to facilitating smoother returns operations, data is at heart of a retailer’s ability to deliver a frictionless experience to customers.
To succeed, now and in the future, invest in AI and automation.
Automation and generative AI offer the potential to transform retail operations, driving efficiency, innovation, and profitability in an increasingly competitive landscape. Generative AI can analyze vast amounts of data to make accurate predictions about customer preferences, demand forecasting, and inventory optimization as well as reduce errors in ordering and stocking.
AI-powered recommendation engines can also analyze customer behavior and preferences to provide personalized product recommendations, enhancing the shopping experience and driving sales.
On the dynamic pricing front algorithms can analyze market conditions, competitor pricing, and customer behavior to optimize pricing strategies in real-time to stay highly competitive. Automation tools can monitor inventory levels in real-time and automatically reorder products when stock runs low. This minimizes the risk of stockouts and ensures that popular items are always available to customers.
By leveraging automation and generative AI, retailers can differentiate themselves from competitors by offering superior customer experiences, optimizing operations, and staying ahead of market trends.
Derek Corrick is an experienced Information Management practitioner with an abiding commitment to the success of his customers. As Pivotree’s General Manager for data management (DM), he leads a team dedicated to helping companies leverage their information assets to deliver clear and measurable business results, increase sales, drive enterprise efficiency, and enhance customer experience/engagement – all while reducing business risk. Prior to joining Pivotree, Derek founded and managed successful DM and Information Management practices at two leading consultancy firms, and served as Executive Vice President for a major DM solution provider. His passion spans DM implementation excellence, change management, business development, and digital transformation.
About Pivotree: Pivotree, a leader in frictionless commerce, strategizes, designs, builds, and manages digital Commerce, Data Management, and Supply Chain solutions for over 200 major retailers and branded manufacturers globally. With a portfolio of digital products as well as managed and professional services, Pivotree provides businesses of all sizes with true end-to-end solutions. Headquartered in Toronto, Canada, with offices and customers in the Americas, EMEA, and APAC, Pivotree is widely recognized as a high-growth company and industry leader. For more information, visit www.pivotree.com or follow the company on LinkedIn.
*Partner content. To work with Retail Insider, email Craig Patterson at craig@retail-insider.com
