Digital Transformation in Retail
There has been a lot of discussion about the digital transformation of retail, and yet the concept is so all-encompassing it can be a challenge to keep track of what it really means, where you are in the journey, and how it directly applies to your business.
In its simplest sense, digital transformation is about retailers taking advantage of technology to pursue new business models, streamline operations, and create personalized experiences for customers that drive loyalty and profitability.
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Beyond the hardware and the code, it’s a philosophy of change in order to solve problems and fundamentally improve lives. There is no ON/OFF switch for it — it brings together our past, present and future in a state of simultaneous adaptation and evolution. It’s the store of tomorrow, open today.
Aperion and EnsembleIQ have partnered to research how digital transformation is shaping retail and how we as an industry can form a common lexicon to identify best practices and share our successes.
Digital Transformation in Retail
AI (artificial intelligence) is the simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using the rules to reach approximate or definite conclusions), and self-correction. Applications of AI include expert systems, speech recognition, and machine vision. AI-enabled retail is used by retail stores.
Powered by BLE (Bluetooth Low Energy) technology, this device can transmit messages to other Bluetooth-enabled gizmos, such as smartphones, tablets and smartwatches. Beacons have the capability to “recognize” a device based on its location or previous interactions, enabling a retailer to send notifications to a shopper tailored to where he/she is in the store and what type of customer he/she is.
System of payments powered by nearfield communication (NFC), including NFC-enabled credit and debit cards, smart cards and smartphones that allow a customer to complete transactions without physically touching a payment terminal. A shopper can pay for a purchase just by waving a card or phone over a terminal.
Process through which data pertaining to consumer behavior is used to make informed business decisions through market segmentation and predictive analytics.
CUSTOMER ENGAGEMENT ANALYTICS
Use of analytics to assess connections made with customers to produce an effect or a reaction, and the experiences customers share with other customers about a product, service or brand.
Interactive kiosk, touchscreen or other mobile device in a brick-and-mortar store that enables customers to browse and shop the retailer’s entire catalog of products.
Digital Transformation in Convenience Stores
Technology-driven retail store concept that can integrate a customer’s shopping experience and product data through social media, POS and other data sets and generate real-time insights.
INTERACTIVE VOICE RESPONSE (IVR)
Automated telephony system that enables identification, segmentation and routing of callers to the appropriate recipients. It accepts a combination of voice telephone input and touchtone keypad selection and provides appropriate responses by voice, fax, callback, email and other forms.
OMNICHANNEL RETAIL IDENTITY MANAGEMENT
Solution that helps retailers build personalized shopping experiences across various channels to enhance revenue stream and brand loyalty
ONE-CLICK CHECKOUT (ONE-CLICK BUYING)
Technique of allowing a customer to make online purchases with a single click, without having to use shopping cart software.