Retail: Change of Perspective for a Clearer View

Companies, Marsden says, must empathize with the consumer. “They must understand the world from the consumer’s perspective. Once they do that, they will recognize the expectations that the consumer has of them.” That, however, is not enough. “Once you have recognized the customer’s expectations you must exceed them to be successful.” Retailers need to try harder to strengthen the autonomy, social connectedness and competence of the customer. “Without psychological expertise not even modern methods like lean startups and design thinking will be much help. In the end all they will have is a wall with lots of multicolored Post-it notes.”

The trendbook’s authors conclude that “It’s no longer ‘Digital First,” it’s ‘Humans First’.” Retail must harmonize its offline and online business, enhance the sustainability of its offering and see digital transformation not as an end in itself but as an enhancement of the customer’s comfort, autonomy and competence.

Digital technologies like the Internet of Things (IoT) make systematic collection and evaluation of all interaction with the customers possible by providing data that serves as the basis for decisions. For customers this leads – both online and offline – to a positive shopping experience. In-store, for example, IoT enables the customer to be directed by his smartphone straight to the merchandise he has previously discovered in the online shop. With digital price tags prices can be adjusted flexibly to the customer’s preferences and to the latest market conditions.

In the future long lines at the checkout may also be avoided with the aid of new technologies. “Soon there will no longer be any checkouts,” the trendbook’s authors forecast. “The customer will take what he wants – and leave the store.” Amazon Go is already trialing no-checkout retailing. In the online retailer’s physical stores customers pay automatically as soon as they leave the store with their purchases. As the consumer saves time that might have been spent at the checkout Amazon captures valuable data in the form of customer movement profiles and reachout patterns.

So retailers should postpone digital transformation no longer because they might otherwise lose customers fast to the competition. Instead, smart solutions on the Internet of Things can help improve processes and eliminate experiences that disturb consumers while they are shopping. Data is the basis on which customers can be offered a high-quality, customized shopping experience. When digitizing, companies must gear the entire enterprise to digital change and should always think from the perspective of their customers.

For further useful practical hints on digital transformation check out the free Smarter Retail trendbook.