Automation is rapidly
catching up with retailers, and the next year will be a key year for them in
this direction. Radical optimization of store management is the only way that
retailers can operate at a lower cost.
Over the past decade,
retailers have been addressing the challenges and opportunities posed by the
rapid adoption of smart mobile devices by consumers since the launch of the
Apple iPhone in 2007. Today, tech-savvy consumers regularly shop digitally,
beyond the traditional store. The new consumer behavior has led retailers to
redesign their retail space to blend a digital and physical experience that is
pleasing and relevant to consumers and that strengthens each retailer's brand.
While these changes
are beneficial to consumers, they are at odds with the concept of
"self-service" in the operating model of the 20th-century store. In
order to serve consumers who start their purchases outside the store but finish
them in the store or deliver them directly to the consumer, retailers have to
bear new costs that cannot simply be reimbursed at high prices.
As the industry enters
the new year, retailers face the challenge of rethinking how their operating
processes and systems will support the new sales environment. This is where
automation comes into retail.
A combination of IoT (Internet of Things), AI (Artificial Intelligence),
ML (Machine Learning) and robotics will be used more
often in distribution centers, order management systems, and in stores to
perform a wide variety of tasks, from order picking to inventory management and
cashier-less store management. In addition, retailers will increasingly use AI/ML
"algorithmic" data analysis to automate decision making for routine
operating processes.
Some analysts predict
the automation of direct delivery of "last mile" orders - from flying
drones to automatic vehicles. Although these technologies are being tested in
the UK and the US, retailers have many opportunities to optimize processes in
traditional stores to operate at higher speeds and at lower costs and to
provide the level of service required by today's experienced in-store
customers.
The search behavior of users changes and their expectations grow
Today's users need
immediate answers in situations where they want to know, do, buy or go
somewhere else. The concept of micro-moment has enabled marketers to obtain
reliable, measurable, and relevant information about consumer behavior.
Analysis of consumer
behavior and expectations has proven very useful to marketers. Many companies
used the concept of micro-moment as the basis for a strategic plan to work with
mobile technologies. This allowed marketers to highlight the most important
moments in communication with users and to promptly respond to their requests.
In addition, traditional models and approaches were re-evaluated: from
determining the share of advertising impact and analysis of business results to
ensuring the convenience and usefulness of the content.
New behaviors and expectations
Today's consumers are
used to getting what they need, here and now. They take constant access to
information in a way that is convenient for them for granted. The person always
strives for more. It is obvious that the requirements for the volume of useful
information, the level of personalization, and the speed of obtaining results
will grow.
Making informed decisions
Remember the last time
you used your phone to find information or make a decision. This could be
something important, such as finding a family car or planning a trip. Or there
could be something simpler: a choice of pens for a kitchen set, a search for
folk bee stings or hiking socks.
People want to make
informed decisions, and they are increasingly using phones to find the
information they need. This is also clearly visible in the statistics. The
number of mobile search queries with the word "best"
has grown by 80% in the last two years. This is not only true for over-the-top
solutions. People use phones to search for information on virtually any issue.
Thus, over the past two years, the number of requests for toothpaste from
mobile devices has increased by more than 80%, and requests containing the
phrase "the best toothpaste" - by more than 100%. Prior to the advent
of smartphones, the search for information required more effort from users. The
process is now much simpler and faster, and on any issue, from the most
important to almost insignificant, you can weigh the pros and cons and make an
informed decision.
Location accounting
People expect digital
content to be adapted specifically for them, including their location. A few
years ago, it was supposed that such information was provided by users
themselves. For example, in order to find a sushi restaurant nearby, the user
had to specify a city or district or enter the word "nearby". Now it
is expected that the system will collect all the necessary data on its own and
offer suitable options simply on request "sushi".
And that's not all.
Over the past year, smartphone users have become much more likely to buy goods
on mobile sites and in applications that adapt the information to the location.
People expect that offers will be picked up automatically on the basis of
geodata.
Prompt access to information
Did you ever need to
make a last-minute reservation at a restaurant? Or a hotel room? People are increasingly
relying on mobile devices. Every day they shop at the last minute and make
spontaneous decisions based on the information they get from their smartphones.
Today, users are 50% more likely to buy immediately with a smartphone than they
were a year ago.
Mobile technologies
significantly expand the possibilities of users. People spend less time on
preparations because the smartphone is always with them. And they expect
companies to understand their needs and offer only what they really need.
Conclusion
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Retailers benefit from
a very dynamic and flexible response to changes in customer demand, location, and competitor activity. The potential for geodata is enormous as evidenced by
the success of Amazon, Walmart, DNS-shop, and other major retailers.
Soon the market will
change radically: those who can apply geodata correctly will win the race. If
you don't do it now, in 3 years the struggle for the buyer will be lost.
The only difficulty is
the availability of quality data. If the store does not have them, it is
necessary to start collecting and processing them now, and it will be possible
to return to the question of optimization in a year when there will be a
sufficient amount of accumulated data.