If there’s something strange in your neighbourhood. Who ya gonna call?
Ghostbusters! (Mythbusters).
Where is digital truly changing retail, and what are the greatest disruptions likely to occur in the short term?
Understanding Digital Value
Many names, pseudonyms and new business models exist under the term digital, all claiming to enhance customer experience. But how do we determine what creates value in the short to medium term?
What does “You need a digital strategy” look like, mean and how does it add value?
Breaking Down Digital Experience
Our experience shows the broad banner of “digital driving customer experience” needs careful analysis to be better understood.
Marketing automation alone doesn’t necessarily improve customer experience, though predictive modelling with segmented, accurate and relevant “customer pull” messaging can make a difference.
Simply pushing products through digital channels just automates old processes. Customers might receive items faster and in greater quantities, but this doesn’t guarantee a better experience.
Effective Digital Implementation
Digital management of working capital, including inventory and fulfilment modelling combined with building digital communities, represents a sensible use of priorities in both capital and resources. This approach works best when retailers offer products that consumers actually want.
Three Key Digital Areas
Let’s examine digital in three broad categories:
Digital Marketing
Marketing through digital channels and technologies
Digital In-Store Integration
Physical retail meets digital innovation
Digital Fulfilment
Meeting modern delivery expectations
Mobile’s Growing Influence
Google’s research shows in-store sales influenced by digital touchpoints have tripled over the past 24 months, highlighting the need for business digitalisation.
Understanding Digital Marketing
Dave Chaffey from Smart Insights defines digital marketing as achieving objectives through digital technologies and media. This includes managing various online company presences, such as websites, mobile apps and social media pages.
The Reality of In-Store Digital
Physical shop environments using digital interfaces are either in their infancy or overhyped, depending on your view. This isn’t about sensors and beacons for customer monitoring – we’re talking about interactive devices like iPads and their successors.
These devices often gather dust while waiting to showcase information and inventory. Why? Because regardless of generation, store interaction fundamentally relies on great people, products, experiences and human connection.
Digital Devices and Human Experience
Digital devices in stores mainly support the human experience, like sales assistants using mobile devices for inventory checks. Research shows average screen time is 2.9 hours daily and growing – shop visits offer an escape from screens, not more digital interaction.
Modern Fulfilment Expectations
Today’s consumers want:
- Fast, free and transparent delivery
- Regular updates throughout the process
- Enhanced service levels
Retailers now use digital for:
- Dynamic checkout experiences
- Regional and local fulfilment
- Omnichannel inventory visibility
- Multi-carrier delivery services
Real value comes from how you use digital to benefit customers, not from marketing messages alone.
By Brian Walker