From digital transformation to brand collaboration, learn how forward-thinking retailers can thrive in a changing market.

Since the boom of ecommerce in the 1990s, the retail sector has found itself on increasingly uncertain ground, and we’ve never seen market conditions as disruptive as they are today. Customer expectations have changed at pace, and business models have had to adapt to maintain market share and breed brand loyalty.

Today, ecommerce continues to be the fastest growing segment of the retail market in Europe and North America, meaning brands have to strike the right balance between online shopping, new digital experiences, and traditional in-store interactions. This is still a challenge for many, but it’s far from the only one today’s retailers face.

Post-pandemic customer trends, a growing emphasis on health, climate change and sustainability, and less disposable income all contribute to the current market environment.

To thrive in this landscape, retailers need to monitor these trends, keep track of customer expectations, and find new ways to deliver the enhanced, personalised, and timely experiences that set brands apart. Here are five strategies that will ready your retail organisation for success.

1.   Embrace digital transformation (but really, this time) 

A 128% increase in online sales since 2015  represents a major opportunity for retailers who have already invested significantly in their ecommerce presence. With post-pandemic consumers more likely to spend online, it’s likely that new digital opportunities will continue to present themselves through apps like TikTok and Instagram, and direct-to-customer subscription models.

Exploiting these opportunities and finding new ways to interact and engage with increasingly homebound customers is dependent on your ability to understand trends. This requires two things: the right data, and the latest digital capabilities, like AI and machine learning, to turn that data into insights.

For retailers that aren’t currently placing digital, data-driven processes at the heart of operations, now is the time to start. The competitive nature of the retail market means those too slow to act will see revenue lost to more nimble, tech-savvy competitors.

2.   Double down on data initiatives 

Whether you’re looking to understand customer habits or improve operational efficiency, data is the cornerstone of successful, modern retail. In fact, Snowflake research shows that 46% of retail and CPG firms are already using data to reveal new market opportunities, and 41% plan to do so in the next 12 months.

However, only 4% say they are currently using data to “a great extent” to achieve strategic business goals. And less than a third say the majority of their decisions are informed by data.

This means there’s a huge opportunity for data-driven retailers to gain competitive advantage. The most forward-thinking companies are going a step further, though, enriching their data sources with third-party datasets to develop deeper and more contextual understandings of the market.

3.   Turn competitors into collaborators 

One relatively new concept in the data sphere are Data Cleanrooms. These environments enable retailers to share and connect data with other organisations in situations where both parties benefit – all while protecting personal information to ensure alignment with GDPR legislation.

In fact, retailers today are increasingly joining forces, either to provide new products, collaborate on projects, or gain greater market share. One CDO interviewed recently outlined the benefits of joining forces with other retailers: “With our own data we can only look internally,” they said. “But we need to look outwards and see things like industry benchmarks, regional trends, and which waves we can ride.”

Despite the advantages of pooled resources, Snowflake research shows that just 45% of retail organisations are currently able to exchange data with other organisations. Data marketplaces are helping facilitate this collaboration by providing seamless and secure access and data-sharing capabilities to help retailers better understand customers and the market, and drive new and exciting solutions.

4.   Give your customers what they want

In the coming years, automation will pave the path to productivity for a lot of retailers, reducing personnel while introducing new levels of efficiency. Think self-service checkouts, or Amazon’s cashless stores as a slightly more high-concept example.

But while these seamless interactions will appeal to some, it’s important to remember that not every customer will be comfortable with using contactless and frictionless experiences. Bear in mind that today’s shoppers comprise several generations, from Baby Boomers to Gen Z, so it’s inevitable that some will still prefer the human touch. Striking this balance successfully and providing a range of options, while still reaping the benefits of automation, will be key to success here.

5.   Bring everything together in one place

One of the problems retailers often struggle with is making data accessible to those who need it, when they need it. In fact, 36% of retail and CPG firms say poor data management has cost them strategic business opportunities.

In contrast, Snowflake research tells us that the 6% of organisations that are outperforming their peers in the data economy provide unimpeded access to their data, no matter where data users reside.

Having a centralised cloud data platform that provides easy and instant access is one of the things that will help retailers provide the hyper personalised products and services that McKinsey tells us 71% of customers expect. And it’s important not to underestimate the importance of this. Especially when as many as 76% get frustrated when personalised interactions don’t occur.

To find out more about Snowflake and the services they provide to the retail industry, click here.

This article was also published in The Retailer, our quarterly online magazine providing thought-leading insights from BRC experts and Associate Members.

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