Research Reveals Retailers are Embracing Digital Innovation for Growth
In today's competitive retail landscape, embracing digital innovation is no longer a choice but a necessity. Retailers worldwide are increasingly turning to technology to enhance customer experiences, streamline operations, and drive business growth.
In association with Zitec, we recently published our Retail CIO Playbook for 2024. As part of the report, we delved into the digital innovation strategies of retailers to reveal a nuanced landscape where certain areas are taking precedence while others pose significant challenges. Here, we provide an overview of the results. You can download the entire report for free.
Omnichannel Supremacy
In the Playbook, we surveyed 150 of the most senior IT decision-makers in retail across Europe. The results revealed that almost half (45%) of retailers believe that omnichannel, mobile, and e-commerce evolution will create the most value for their organisations.
This overwhelming response highlights the urgency for retailers to adapt to the ever-changing customer behaviours, seamlessly bridging the gap between physical and digital channels.
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Personalisation Drives Customer Satisfaction
Tailoring the shopping experience to individual preferences is another key area of focus for retailers.
A significant 23% of respondents are prioritising personalised customer experiences, demonstrating a commitment to enhancing interactions and fostering customer loyalty.
Payment Innovations Gain Traction
While payment and financial innovations like Buy Now Pay Later (BNPL) and digital wallets are gaining traction, only 3% of retailers currently prioritise them.
This could be attributed to the fact that many retailers have already made significant strides in this area, offering diverse payment options to cater to consumer preferences.
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Artificial Intelligence (AI) Optimisation
Despite AI's potential to optimise operations and enhance decision-making, only a small percentage of retailers prioritise its implementation.
This could indicate that many retailers are already leveraging AI effectively for critical functions like margin improvement and inventory optimisation.
Securing Digital Assets
Although recognising the value of digital innovation, retailers are also mindful of the challenges it presents. Cybersecurity emerged as a significant obstacle, with 63% of respondents acknowledging the need to safeguard digital assets and customer data.
Delivery timelines and quality control also pose concerns, with 59% anticipating difficulties in meeting project targets.
Partnering for Digital Excellence
When selecting partners for digital innovation, cost and expertise are the top priorities.
However, most Retail CIOs allocate between 11% and 20% of their IT budget to outsourcing custom software and app development, highlighting a balanced approach between in-house and external capabilities.
In conclusion, digital innovation is driving the retail industry forward, with omnichannel experiences, personalized customer interactions, and seamless payment options taking centre stage. While cybersecurity and project management remain areas of concern, retailers are adapting and finding innovative ways to overcome these challenges. The future of retail lies in embracing digital transformation and leveraging technology to deliver exceptional customer experiences and drive sustainable growth.