5 Challenges of Australia's Retail Industry
Brick-and-mortar stores aren't dead; they just have to evolve. That means retailers must embrace the digital transformation--it's the only way to compete in an industry where online businesses seemingly have all the competitive advantages.
Retail business owners have many goals in mind, like providing exceptional customer service, boosting sales, minimising costs, and building a sustainable business model. Here are five challenges Australian retailers need to overcome to achieve those goals.
1. Knowing the Customer
Amazon has access to mountains of data, which allows the e-commerce giant the ability to customise offers in ways traditional retailers can't. Fortunately, this is changing with continued advancements in technology, but more innovation and adoption is needed to level the playing field with online retailers.
Solutions are available for Australian retailers, though. For instance, Personalise Marketing Content in real time in physical locations with Suez Technology Facial Recognition Target Advertisement. Stores now have the ability to craft personalised coupons and offers to customers as they shop.
2. Understanding How a Purchase Is Made
Online retailers have an advantage here in that they can clearly see what action a customer took to arrive at a purchase. Brick-and-mortar retailers in Australia don't have the same advantage.
Again, progress is being made here, and it's important retailers continue to embrace the latest technology. A good solution being offered is Suez Technology's In-Store Retail analytics, which can provide store owners with insights on how shoppers decided to purchase something.
3. Improving the Customer Experience
Because revenue for Australian retailers has historically been driven by in-person transactions, many companies haven't embraced the web quickly enough. This is an issue, as digital marketing is now the way to understand customer experience standards.
The good news now is that 91 percent of retail brands are already using two or more social media channels. However, more online marketing activity is needed to ensure retailers can accurately define customer experience expectations and then deliver.
4. Providing an omnichannel experience
According to an Accenture survey, half of the consumers believe the best way for businesses to improve the customer experience is to integrate online, in-store, and mobile channels. This is tricky for brick-and-mortar stores but still achievable (as long as the right technology is used).
To better overcome this obstacle, physical retailers, no matter how big or small, must intelligently invest resources into providing their customer with a seamless experience across channels and devices--better know as an omnichannel experience. Suez Technology Retail analytics can help retailers achieving that
Winning at the New Retail Game
The old ways aren't working anymore. Retailers need to aggressively (but intelligently) use all the technological tools and resources at their disposal. It's the only way they can compete with the online giants. From big data and the internet of things to video analytics, there are numerous quality solutions available. Use them correctly, and success can be realised.