The 5 challenges facing the retail sector and how to overcome them
Today we live in a globalised world and the retail sector plays a key role in international transactions. The pandemic has been a watershed for many companies in the retail sector. Most of them have struggled a lot, but some big retailers and specific sectors such as food saw demand increasing. According to the World Trade Organization (WTO), total world trade in goods declined by 5.3% in 2020.Expectations are more optimistic for this year, but even so, there is no room for complacency. Retail companies have several challenges ahead of them, the question is, Are they ready for this transformation?
In this process of change, retailers face a number of challenges, among them:
- Getting to know their customers as well as possible is the key to success.
- Build customer loyalty in a highly competitive world. Retail companies need to provide an easy and positive shopping experience, as well as having a good product to keep customers satisfied. This will lead to repeat purchases or recommendations.
- Offering an omni-channel experience to consumers, you have to be ready to distribute your services both online and in physical shops.
- A secure and consolidated data infrastructure where all customer information is safe.
- Managing the vast amount of data available and making the most of that information.
To meet these challenges, companies will make significant strides in their data-driven maturation. Data management in the retail sector will not only benefit companies’ internal processes, but will also improve the customer experience.
With respect to the internal processes, while applying artificial intelligence (AI) you will be able to better identify your customers and potential customers, offering them a personalised product and predict their buying habits. No need to say that a more reliable demand forecast will result in reduced costs.
Also the consumer will benefit from the retailers data-initiatives. A company that uses an appropriate data strategy will have the latest technology in security measures necessary to protect consumer information, information and support throughout the buying process from decision making to receipt of the product, and will be able to evaluate the entire process. This allows retailers to create an optimal customer experience, every step of the way.
These days, having a data-strategy is fundamental to grow and enhance your business and not be left out of the competition.