Before online commerce footprints were smaller for individual retailers, chains had a presence at a local, state, national and perhaps regional/global offices, shops and franchisees. Once the first eCommerce stores arrived, the inefficiencies of the online/offline retailer began, the worst retailers not having any online presence to the best emerging, like Amazon bookstore, to Amazon everything store.
Michael Stone, Director of Products, goes into the sobering lesson for Australian retailers for Flarrio and the significant opportunity to equip local businesses with technology solutions to compete effectively.
Time to Rethink Strategies, Retailers
Amazon coming to Australia has everyone, from the small bricks and mortar stores to massive department stores like Myer, rethinking their strategies and the way they do things.
The Conversation published an article with statistics indicating that there is a growing flexibility around how physical retailers can optimise the tools and technologies compete with giants like Amazon, although foot traffic in physical stores has fallen by 5% this year. This indicates a shift towards digital and offline retailers are now looking at what technologies and innovative solutions can compliment strategies.
Take The Opportunity to Adopt Technologies & Innovation
Many Australian retailers haven’t taken the time and effort to collect and understand data – whether it’s their customers’ or their competitor’s – which makes it increasingly difficult to take action, measure effectiveness and really influence their customer’s behaviour. Not to mention to it when it matters the most: in REAL-TIME. Michael says:
A good example would be the approach of leveraging a shopping center’s WIFI to essentially build what would be a shopping marketing list. The technology that facilitates this would ultimately generate psychographic profiles based on volunteered and inferred information. By understanding this well, retailers can then create a more targeted and personalised campaign that actually ensures the right shoppers are being met with the right opportunities. The value in understanding the technology frameworks that allows this means a higher conversion of sales, but again, further data measurement to understand what is working and what is simply not working.
Moving away from simply targeting shoppers based on their basic demographics and addressing them by their name, actually having the ability to engage in a personalised way is what will move the needle in terms of increasing sales, profitability and creating long-term shopper loyalty.
Embracing Digital Transformation
Australian retailers have an opportunity to adopt these technologies and practices so that they can not only improve and streamline operations, but succeed.
At Invigor, we work with a variety of retailers to prepare for the next phase of their operations – we enable bricks and mortar to integrate technology solutions and empower them with actionable insights.