The Great Recession was one of the worst economic downturns in recent history. However, while it may have wiped out millions of jobs and caused businesses to close, it also allowed retailers to consider how to transform their businesses and prepare themselves for future growth.
While many stores have taken advantage of this opportunity for digital transformation in retail, others are still struggling to survive today—especially when eCommerce spending is snowballing. This blog post will discuss ways to use technology to improve your retail business performance, even during difficult times.
Also Read: 8 Best Free PC Part Picker Apps For Android
Table of Contents
- Why is digital transformation significant for retailers?
- Challenges and benefits of a digital transformation for retail in a recession
- The gap in eCommerce performance between top and bottom retailers has widened during the recession.
- Supply chain disruptions have witnessed a rise in online grocery spending
- How eCommerce can help brick-and-mortar retailers thrive even during a recession
- Retailers should harness technology to retain a competitive advantage in the digital age and during a recession
- Customer-centricity should be at the heart of a retail organization’s digital transformation strategy
Why is digital transformation significant for retailers?
Digital transformation is essential for retailers to keep up with the latest trends and be competitive. But how can you make sure your digital transformation will be successful? It all starts with customer-centricity. According to Forbes, “Customer-centricity is the ability of a company to look at its products through the eyes of its customers.”
Customer-centric companies focus on discovering what their customers want and building their businesses around it. If your company isn’t already focused on customer needs, it might be time to rethink some things.
For customers to truly feel that they are being heard and valued by brands they interact with, they must understand what their customers want from them—and then deliver on these expectations throughout every step in the customer journey (from awareness through purchase).
Also Read: 10 Best PDF to JPG Online Converter Websites
Challenges and benefits of a digital transformation for retail in a recession
You might think this would be a great time to catch your breath and focus on the basics. But if you feel that way, you’re doing it wrong.
After all, digital transformation is no longer optional for retail in a recession; it’s essential. And here’s why:
- Create a more seamless customer experience across channels and devices.
- Provide more insight into consumer behavior and preferences; you can make better decisions about where to invest your marketing budget.
- Because it enables retailers to adapt quickly when economic conditions change or competitors emerge with new strategies.
Also Read: 10 Best Mac Keyboards for Programming
One of the most exciting aspects of digital transformation is that it isn’t a one-size-fits-all strategy. Each company has unique challenges and opportunities, which means that what works for one company may not work for another.
For example, many retail companies do great things online but struggle in their brick-and-mortar stores. The gap in eCommerce performance between top and bottom retailers can widen during a recession—the best online retailers outperform the market by four times.
Also Read: How to Fix Invalid Syntax Error in Python
Supply chain disruptions have witnessed a rise in online grocery spending
One example is the online grocery market, which has experienced rapid growth in recent years. A report by Markets and Markets projects that the global online grocery retail market will grow at a compound annual growth rate (CAGR) of 20.5% from 2017 to 2023, making it one of the fastest-growing segments of eCommerce overall.
In this context, it’s not surprising that supply chain disruptions have witnessed a rise in online grocery spending: customers who can’t pick up their weekly shopping from the local store may be more likely to order from an online retailer than face longer lines at other stores or pay for delivery on top of groceries if they do go out for supplies.
And what does this mean for them? If we can figure out how they are doing it, we may leverage that strategy to grow our businesses.
But there’s another important lesson here: Data. These online grocery retailers have access to all kinds of data about their customers, which helps them provide personalized shopping experiences and improve operations in real time (like when someone buys a lot of ice cream). So let’s look at ways this could benefit us as well.
Also Read: 10 Best Tattoo Apps of All Time
How eCommerce can help brick-and-mortar retailers thrive even during a recession
Most brick-and-mortar retailers who have been in business for decades can attest that consumer spending tends to decrease during recessions. However, eCommerce offers several opportunities for these businesses to thrive during a recession.
For one thing, eCommerce helps brick-and-mortar retailers expand their reach and connect with more potential customers than they would otherwise be able to reach by just opening up a physical store.
By reaching out digitally, they’re able to grow their customer base while also retaining existing customers who might not be able to visit their stores as frequently since they live further away or don’t like driving long distances just for shopping purposes (or perhaps both).
Also, eCommerce can help retailers maintain clientele during recessions through online channels like social media promotion and SEO optimization—it can also help them increase sales even during recessions.
This is because there’s no need for costly advertising campaigns when you already see organic traffic from search engines daily; all you need are some excellent keywords combined with well-written content on relevant topics directly related to your products/services.
Also Read: 10 Best Book Apps for iPhone
Retailers should harness technology to retain a competitive advantage in the digital age and during a recession
To compete and retain customers, retailers should harness technology in the following ways:
Provide a seamless experience for your customers. Any retailer that wants to gain and keep their shoppers’ loyalty will provide an easy and convenient way for them to shop. This can include offering products and services online, by phone, or through physical locations like in-store kiosks or mobile apps.
Use data analytics to optimize operations at every stage of the customer lifecycle—from marketing campaigns, merchandising efforts (promotions/sales), supply chain management (ordering/distribution), inventory management, etc.—to help you deliver on your promise of providing an enjoyable experience while also driving sales growth across channels.
Leverage technology as a competitive advantage by creating new offerings based on consumer insights gained through digital channels like mobile apps; leveraging social media platforms such as Facebook Messenger; using augmented reality solutions (AR) throughout all touchpoints, including retail stores; using artificial intelligence (AI) algorithms to anticipate which products consumers want next; providing personalized recommendations based on previous purchases.
Also Read: 10 Best Relaxation Apps To Calm Your Brain
Customer-centricity should be at the heart of a retail organization’s digital transformation strategy
Customer-centricity should be at the heart of an organization’s digital transformation strategy. This means putting customers at the center of product development and the core of marketing efforts.
To be truly customer-centric, you need to understand what your customers want and how they think, shop, and buy. It also means getting under the skin of your customers so that you can identify pain points in their experience with your brand or company—and then designing solutions that make them feel better about doing business with you or using your products or services.
Many companies have been making good progress on this front in recent years. However, there’s still more work if we achieve true customer-centricity across all aspects of our organizations’ businesses.
Also Read: 15 Best Free Karaoke Apps for Android
In conclusion, retailers must embrace technology, and eCommerce, to improve their businesses. They need to understand that constant change is the only way forward if they want to stay relevant in today’s highly competitive market.