Global retailers of all sizes are anxious about technological challenges they are facing,an Oracle Retail report finds.[shutterstock: 393634162, Pavel1964]
The 2018 Mobile Retail Insights Report reveals a consensus around mobile strategies and emerging logistics and personalization concerns.
It also reveals that 60% of respondents believe that their organization will likely face disruption from more innovative, nimble and customer-centric organizations.
While retailers believe their company embraces digital and mobile technology, 60 percent of respondents recognize that they are not investing quickly enough to keep pace with the speed of technology change and consumer expectations.
The trends identified in the report highlight that retailers have been slow to realize mobile’s potential and question their logistical capabilities in the countdown to the busiest sales cycle of the year, the holiday season.
“Despite a strong improving sales performance, retailers continue to feel overwhelmed by their infrastructure limitations. Decision paralysis has further prevented them from realizing their omnichannel potential,” said Mike Webster, senior vice president of Oracle Retail. “Having a single view of customer, inventory and order is no longer optional for retailers to deliver their brand promise. Organizations that complete this journey first will create stronger relationships with customers. Additionally, they will create space for new innovation projects and make more strategic decisions.”
Alignment on Mobile’s Role in Retail
In the study retailers seem to have reached a general consensus around the role of mobile technology and opportunity for capturing sales and removing friction from the purchase experience.
- Conversion. Retailers affirm that their mobile strategy is to increase shopping basket size by catching customers at the point of intent.
- Productivity. Mobile also is impacting associate productivity. 45 percent of respondents note that they are empowering employees with mobile capabilities. Consequently, they can perform their jobs regardless of where they are.
- Payments. New payment options like contactless checkout and mobile payments are in use today or part of roadmaps for most retailers. Hardline retailers (less than 32 percent disagree) seem to be behind grocery and fashion brands (over 55 percent agree) in enabling these new payment options.
Brands large and small have recognized the tension between consumers’ contradictory attitudes around privacy and their growing need for personalized engagement.
- Discounts. New policies around data privacy have impacted retailers’ growth potential. 62 percent believe that they lose money by offering general discounts to shoppers instead of tailored offerings.
- Forecasting. Despite this, most retailers (77 percent) believe that customers expect them to anticipate their needs by analyzing purchase history.
Scaling Omnichannel Logistics
Retailers have historically prioritized front-end aspects of the Omnichannel shopping experience and cobbled together backend infrastructure. They neglected the merchandising, planning and supply chain aspects of Omnichannel retail.
Consequently, this has prevented brands from being able to profitably execute, have clear visibility into their customers’ journey and inform new digital experiences like augmented and virtual reality.
- Consumer Journeys. Less than half (46 percent) of retailers believe they are well positioned to support an Omnichannel shopping experience.
- Logistical Confidence. This increases with the size of retail organizations. 67 percent of respondents from organizations with more than $10B in sales and 52 percent of respondents from organizations with $1 to $10B in sales note this capability.
- Growth. Conversely logistical doubt trends towards major growth milestones, only 38 percent of respondents from organizations with $250 to $500 million in sales and 30 percent of respondents from organizations with $750 million to $1 billion believe they are well positioned.