Many people wish they could look into a crystal ball. Retailers would certainly like to ask the occult prop a question or two: How will consumer behavior change? Will brick-and-mortar retail remain important? And what role will digital services play? A reliable tool to get answers to these questions represents a
Knowing and Using Customer Expectations
A few years ago, the EHI Retail Institute, the German Retail Association (HDE), Kantar TNS, and the audit firm KPMG turned to people between the ages of 16 and 60 and surveyed them as part of the study. The nationwide representative survey of 1,015 consumers not only provided deeper insights into current shopping behavior. Future expectations were also in focus.
In the course of digitalization and rapidly changing consumption habits, retail is facing changes. Knowing the biggest challenges and simultaneously utilizing the opportunities arising from them ultimately provides a competitive advantage.
Digitalization – The Next Steps
Thus, the first hurdle is marked: the increasing digitalization. If this is overcome, benefits await retailers in terms of more efficient internal structures on the one hand. On the other hand, overcoming it offers numerous opportunities to win the younger society as customers, for example, with digital services.
Omnichannel, as a digital and cross-channel business model, was already a relevant topic for more than half of the respondents in 2015. In the future, the seamless integration of the different sales channels will more strongly decide over a successful shopping experience, as well as mobile payment and mobile applications, for example, digital coupons.
What could only be observed for a long time by looking at neighboring countries is now increasingly present in German retail. We are talking about Just in the food trade, drugstores, as well as DIY and furniture stores, alternatives to the classic cash register are being used to continuously optimize the shopping experience.
Big Data. Big Chance!
Artificial intelligence, Big Data, and the Internet of Things (IoT) are also joining the list of future topics. Currently, less implemented in practice, but already about 35 percent of participants attribute great importance to these opportunities for intelligent data analysis. Ultimately, retail can therefore offer a tailored customer service. Potentials lie, for example, in employees at the POS knowing more about the e-commerce purchasing behavior of their counterparts or the data providing insights into the stock levels.
Tip: A seamless and transparent inventory does not have to lie far in the future. With are the properties quickly brought about.
The Significance of Cash
Despite the fact that consumers wish for modern payment systems, cash will not lose its relevance in the foreseeable future. As an indispensable means of payment, retail should look for ways to efficiently, securely, and transparently map the associated cash logistics processes. Only in this way can it fulfill customer wishes to be able to pay both cashless and in cash – in-store and in e-commerce.
To keep pace here, meet the changed requirements, and simultaneously optimize internal processes for more efficiency, there is a promising starting point: digitalization at the POS – whether through modern checkout software, self-service kiosk managers, or efficient cash logistics processes that run securely and transparently in the background.
Conclusion
The changes show that retail remains important. For about a quarter of the respondents, this shopping option will not be dispensable in the future. Although there are some aspects to consider to avoid being left behind by competitors. Because topics such as sustainability and transparency will also become more important in the future. Therefore, it applies – now and for the coming year: openness to new things will pay off.
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