With the digital revolution fully underway, tech geniuses for big-brand retailers probably feel like kids in a candy store right now. With big budgets to experiment with and ground-breaking new solutions coming from every angle – who could blame them? But there’s one thing retailers should avoid at all costs – and that’s using technology for the sake of it.
Improving the customer experience? Really?
Technology is usually employed by retailers under the guise of improving the customer experience, which is nice and easy on the ear, but this isn’t always the reality, is it? For example, do we really enjoy scanning our own items at the supermarket checkout and trying to catch the attention of staff when things go wrong? Do we honestly experience meaningful interactions and speedy resolutions with faceless chatbots? Not likely. These examples of “applied technology” aren’t always about benefitting the consumer, but rather, removing the need for a human head to the benefit of the retailer. Dicey ground if you dare step on it.
Sure – retailers should embrace technology wherever possible but using it to replace human interactions is unlikely to yield a solid return. Many argue technology and automation should be used as a complementary tool for a well-trained and valued workforce it can never replace. That’s why the savviest retailers out there are busy using technology intelligently.
What exactly does intelligent use of technology look like?
Intelligent use of technology in the retail sector is, of course, driven by the need to maximise the bottom line – but that doesn’t necessarily mean cost savings. This is about finding new ways to be where customers are, leveraging the benefits of their own devices and technology, and above all, finding ways to make their lives easier than ever before.
There are some great examples of how technology is being intelligently used in Australia’s retail sector. Some are breaking new ground with alternative checkout methods, such as Amazon with its online grocery shopping (avoiding the checkout altogether), click-and-collect, or home hubs like Google Home and Amazon Alexa which are capable of automatically creating shopping lists and even placing orders. Anything that makes the process of checking out easier or entirely avoidable is on the table for retailers.
Then, there’s the Internet of Things which is boosting supply chain efficiency as we speak. For example, data around consumer behaviour can be used to deliver a more automated and personalised shopping service for consumers while allowing retailers to more accurately adjust their inventory according to forecast peaks and troughs of trade. Some retailers are even experimenting with the use of sensors to automate manual functions such as inventory tracking and price adjustments. This intelligent use of technology is purely focussed on getting goods to consumers faster and more conveniently.
Retail APIs are another great example of intelligent retail technology. APIs, which essentially allow for the sharing of data between separate software components, will have a huge impact on retailers’ ability to meet the demands of modern Australian consumers. APIs will empower retailers with the highest level of transparency and operational efficiency to deliver goods in the shortest timeframe.
The winning formula
So, is there a winning formula for retailers and their approach to technology? Or, in other words, how do we best explain “intelligent use of technology” in the retail space? It’s about improving processes and services in a way that increases sales through new and repeat customers. It’s not about finding ways to cut corners and save money which could cost retailers more in the longer term.