Retailers are facing a whole range of challenges right now, from rising costs and economic headwinds to cautious customers and offshore competition, even as consumers’ expectations for seamless shopping continue to rise.
Those pressures are having real impacts on retailers’ investment decisions, as they try to control costs and make productivity gains while still protecting the moments that matter in building customer relationships.
Resilience is key. Deciding where to invest is challenging, but those retailers willing to adapt to change can still find room to succeed. And those ready to go beyond the status quo and imagine new ways of engaging customers won’t just survive – they’ll thrive.
Here we look at where the smart money is going this year and at how getting investment right means focusing on your people and customers, as well as tech.
1. Lay the groundwork for AI discoverability
AI has gone from being a novelty to an everyday piece of technology infrastructure. However, a recent KPMG study found that while most leading brands in Australia and New Zealand were experimenting with AI, 17% had no plans to do so. This comes at a time when 85% of surveyed retailer websites did not meet basic standards for AI-driven discovery, leaving those brands invisible to shopping agents. And, crucially, poor discoverability often goes hand-in-hand with duplicated or badly maintained inventory data. As the National Retail Federation (NRF) put it, “if your data isn’t in order, your business isn’t ready for AI.”
Smart investments would include improving website structure and data consistency so that products are discoverable and you can keep pace with AI search engines.
KPMG also found that while more than 80% of Australian retailers are testing AI, only a small number are implementing it fully across core functions. They recommend that “retailers should focus on ‘boring but big’ applications – such as inventory visibility, demand forecasting, and dynamic fulfilment – that directly meet consumer needs for value, speed and reliability.”
2. Know your customer, grow your business
Accurate, comprehensive data is as vital for understanding your customers as it is for online product discovery. When you capture the right information you can create wishlists, link intent to transactions and create personalised offers that drive engagement and growth.
Without a deep view of customers you’ll struggle to anticipate demand and respond quickly when categories shrink, and you’ll risk spending money in areas where it’s no longer needed. Investing in a robust CRM and a retail management system that can give you a 360-degree view of the customer has the potential to pay dividends.
3. Make every channel feel like one
Customers don’t think in terms of channels – they expect everything to “just work”, and they’ll judge you on how quickly and seamlessly you deliver on that expectation.
When it comes to offering a truly channel agnostic, unified shopping experience, the most durable investments are the unglamorous ones: order orchestration, accurate availability and return-to-stock speed. If you can improve accuracy and reduce rework, you’ll be on the way to boosting margin as well as growth.
4. Make the showroom pay
For many retailers, the store is still the differentiator as it becomes a centre for fulfilment, but only if teams can serve customers quickly and confidently. Retailers are investing in self-checkout systems, digital signage and contactless payment solutions, as well as simpler processes that give time back to staff. The best ROI is typically found where the investment reduces handoffs and improves speed-to-yes.
5. Back your people
At a time of almost unprecedented technological upheaval, it turns out that one of the best things you can do is invest in your people. KPMG found that “While there has been a lot of talk about adopting advanced technologies or enacting better supply-chain processes to boost productivity, a common avenue for productivity gains … is through customer-service improvements.”
In-store product demonstrations, consultations and workshops give customers the kind of one-on-one experiences and even a feeling of community they simply can’t get from your offshore online competitors, and they have the potential to be game-changing when it comes to conversions.
But face-to-face service is only as good as the people delivering it. Investing in and nurturing high performers who understand your business and its customers can give you an edge at a time when the human touch is set to become a vital point of difference.
Want help to prepare for the future of retail?
We’d love to help you implement the solutions you need today and in the future.
Email us at sales@triquestra.com about unifying your inventory and customer data or book a 20-minute discovery call today.
For more on how a move to a unified commerce strategy gives you the flexibility and agility you need to keep in step with consumers’ changing needs, download our new ebook.
