Surprisingly, most retailers are slow in adopting new technology. They tend to be “fast followers” rather than “first movers” and have no clear strategies for technological innovation. This lack of foresight could be the main drawback for retailers to serve the latest consumer needs. What are the concerns retailers have in mind for being a technology pioneer? A dialogue hosted by BMC Black Belts revealed why most retailers have been reluctant to adopt new technology.
The complexity of the retail business.
As the saying goes, retail is detail. The complexity of the industry makes it difficult and risky to make significant changes in the business process, as it is hard to track and measure the impacts.
The importance of stable operations.
Retailers have a low tolerance for any disruptions that may appear from introducing new technology. Just imagine if the retail stores have to be shut down momentarily to install a new information system, the lost sales arising from the disrupted operation can be costly.
Lack of capacity to drive new technology.
Many retailers need to maintain lean operations under limited headcounts. They are busy and have little capacity to handle any additional workload regarding the adoption of new technology.
Previously, the number one reason for retailers to adopt new technology was to respond to direct competitors who successfully won over their customers with the technology. However, many retailers now begin to see the importance of actively utilizing new technologies, instead of passively reacting to markets. The increasing use of mobile applications from consumers and the growing impact of social media have urged them to move quickly. To keep pace with the technological transformation and to meet the expectations of increasingly demanding consumers, retailers should follow a few principles when implementing technology solutions:
Realign expectations.
Technology might not be the core essential in physical stores, but it will improve customer experience and increase shoppers’ willingness to make purchases. Besides, it frees up overburdened staff to focus on value-added activities.
Master the brand strategy.
Retailers need to know who their customers are, how their shopping journeys look like, and what opportunities for improvement exist. From planning and distribution to advertising and marketing tactics, retailers can only optimize their technology solution after carefully reviewing every part of the business process.
Build partnerships with technology providers.
It is not practical for retailers to establish a full tech department since it may distract them from their primary retail business. Rather than setting up a new workforce, outsourcing the tasks to trustworthy tech partners that understand the industry and their needs might be a better option. Working with tech partners can provide retailers with both the lacking tech expertise and the additional capacity needed to introduce new technology into an organization without incurring much overhead.
Cyclops is a retail analytics system that can help retailers generate insights into how their customers shop inside their stores. To understand more about how Cyclops can help retailers digitally transform their stores amid the COVID-19 pandemic, visit our website: https://dayta.ai