Digital transformation is not a new concept. Although industries in several sectors were already experiencing digital change, the pandemic expedited the process. According to Statista, eCommerce and retail sectors have advanced their digital transformation processes in response to COVID-19 at 70% post-pandemic.
Overall, digital transformation is favorably influencing the creation of improved consumer experiences, while automation is positively impacting the improvement of process efficiency. In other words, businesses that keep up with the digital transition will undoubtedly contribute more to the economy and the individual consumer.
Let’s look at how digital transformation has changed how retailers do business and consumers shop.
The advantages of digital transformation are well-recognized and frequently discussed. The rapid shift, however, confronts the difficulty of skill gaps and cultural divides. The friction is caused by a need for more clarity on transformation initiatives and unplanned and inadequate alignments among an organization’s functions.
This leads to a need for digital adoption platforms to help facilitate digital transformation. But what is a digital adoption platform? These are platforms available to address the issue of adopting new technologies, which are meant to allow seamless software acquisition by simplifying both the employee and user experience and assuring competency on any software platform, website, or app.
The most visible digital revolution since the outbreak of the epidemic is how we buy. The experience of shopping at a physical store is, of course, completely different. Comparing the items accessible at the shop via online channels, on the other hand, has enabled the consumer to pick from a larger pool of available things at lower costs than ever before. Even when a consumer visits a physical store nowadays, they rapidly investigate eCommerce websites for product variety and price comparison.
As we learn, we adapt. Nowadays, businesses and consumers are good at picking up new technologies, especially when we have platforms to guide us. Let’s break down some of the current trends in digital transformation for eCommerce.
Customers participating in retail and online touchpoints are more likely to become valued by the retailer. The approach of omnichannel commerce entails linking and synchronizing company transactions with customers across various channels such as social media, emails, and websites. Omnichannel assists in providing customers with a smooth buying experience.
Automation is a critical approach used by organizations across all industries. Like many other industries, eCommerce constantly expands its boundaries, including every department from marketing to storage, supply chain management, and more. Likewise, the consumer takes a proactive approach to automate their shopping experience with tools such as a smart shopping Chrome extension to do product comparison work and help them find the best price.
Big data is being used by retailers today to understand their customers better. A customized and efficient purchasing experience is what the consumer wants and expects. Retailers are responding to consumer experience desires by employing predictive and prescriptive data, which allows them to manage inventory and merchandising and develop a procurement plan.
Augmented reality (AR)
Augmented reality provides a one-of-a-kind digital experience. Brands may use this expertise to improve relationships between customers and companies. A component of the augmented reality experience is the “try and buy” technology. Brands are now using virtual simulations to let people connect with their products more effectively from the comfort of their own homes. The use of augmented reality to create virtual storefronts best mixes the traditional shopping experience with e-commerce.
Digital transformation is a continuous process, particularly in the retail sector. To strategically develop their business, eCommerce companies must remain up to speed on new trends, consumer demands, and habits.
The use of our data will continue to transform how we shop. A tailored shopping experience is much easier with big data, machine learning, and artificial intelligence driven by cloud computing. The big data algorithms will recognize the customer’s previous buying habits and provide them with alternatives for personalized items and relevant recommendations.
Moreover, as mentioned above, many stores have already utilized AR technology to create a world-class customer experience and build consumer brand loyalty. Others see it as the next great thing in the eCommerce industry’s future.
Customers gain trust in their purchases when they experience what they’re buying in real-world conditions. The expansion of the eCommerce business is anticipated to amplify this aspect of digital transformation.
Another reality that is expected to grow is alternative payment methods. Credit and debit cards have evolved into the standard mode of payment. In the future of the eCommerce sector, many alternative payment methods such as blockchain-based payment such as Bitcoin and buy-now-pay-later (BNPL) choices like Klarna will become the standard.
As new technology continues to be developed, the way we shop will continue to transform. Digital adoption tools help keep us on track and learn how to use technology to streamline our shopping experiences. Trends will come and go, but digital transformation is here to stay.