Digital business models are driving a major transformation in the retail industry. Customers are demanding more information to make better informed decisions. It is easier for customers to access information due to advancement in digital technologies. Hence, retailers are putting in place a digitalization business strategy that fuels growth.
Critical business challenges of retail industry:
Consumerization of retail
Customers are demanding more in terms of convenience, collaboration, flexibility and customization. This has led to the consumerization of retail where retailers need to re-look at their offerings in terms of channels and reassess their strategy. Retailers face the challenges of providing a unified set of systems, processes and data to support a truly omnichannel experience demanded by the customer.
Understanding customer behavior
The challenge is to garner deep insights into customer behavior which can help companies create new innovative offerings, boost their brand sales, improve loyalty and provide a seamless shopping experience. In this digital era, there is a strong need to profile customers, analyze buying behavior and target customers with specific products and services which are customized to their needs.
Privacy protection and security
Customer privacy and fraud prevention at all touch points is a significant challenge for retail industry today. While retailers have many business models and challenges, they are confronted with a need to protect customer data and fulfill compliance mandate. Digital technologies can act as guard against security threats, protecting sensitive data and proactively fighting fraud before it happens.