Goodbye 2020: top 5 lessons you leave behind.
- 2020 has been a difficult year full of challenges for everyone. But it has left behind a series of learnings that every retail company should consider adding to 2021 strategic planning.
- Here are the 5 main lessons that the year 2020 leaves behind:
The importance of
- The safety and hygiene best practices will continue to be essential throughout the coming years.
- Although regulations imposed in the wake of COVID-19 could be relaxed with a vaccine, safety and hygiene measures to protect customers and employees will remain.
- The challenge lies in using technology to promote safety and improve the consumer experience. Adding different delivery options, contact less payment, delivery by means of drones and pickup points in stores are here to stay.
- Ultimately, today's consumer prefers a shopping experience with few points of contact and an easier and simpler access, with safety as a priority.
The relevance of Digital Transformation.
- Digital transformation is not optional but rather a “must have” to survive, and without a doubt, one of the most resounding statements in 2020.
- Many retailers launched new or improved digital solutions to offer their products online. However, companies that already had a "stable" ecommerce platform and "retail tech" tools, such as Prisma, to optimize spaces, prices, assortment and promotions; had a wide advantage over traditional “brick and mortar” retailers with just physical locations and no tech tools.
- More than ever, retailers must integrate technology into their business model to optimize processes and profitability.
Social networks are becoming more relevant.
- COVID-19 has forced the use of social networks to achieve a closer relationship with target audiences and acquire and retain customers. Even if stores re-open again, digital channels will continue to be essential for business.
- The use of social networks is crucial for the communication with consumers, to analyze their changes in behavior and to gain their loyalty. Investing in digital media is required for growth, to show authenticity, to increase brand credibility and to position the firm.
Diversify your offering.
- The year 2020 shows that the needs of customers as well as the context, can change dramatically from one day to the other. The secret lies in offering the right assortment of products and services while still maintaining agile and flexible operation.
- Companies must constantly explore new consumer segments, trends, markets and niches as well as analyze the competitive shifts.
- In Prisma, the Assortments module simplifies the item management process with the use of artificial intelligence. Enabling retailers to optimize their product mix, maximize results and offer the right product range to the customer base. Furthermore, you can add products that are a success in other stores and de-list products that are not performing as expected.
Invest in Supply Chain.
- Consumer expectations regarding delivery has changed dramatically. Today, customers demand same-day delivery or pick up at the store.
- Retailers must adapt their infrastructure to meet new initiatives, and to offer timely delivery. They should invest in omnichannel, supply chain and in the technology required to optimize the consumer experience in all channels.
- Prisma's Promotions module can help successfully manage omnichannel networks;by analyzing the cannibalization effect, pre and post promotion sales, incremental profitability per channel and by measuring the performance of the most important KPIs per channel.
- Recommendations for 2021:
- Providing personalized experiences in 2020 were and will continue to be a challenge .
- Encourage a shopping experience with fewer points of contact.
- Implementing digital transformation is crucial to survive in a world based on data and connection.
- Offer a diversified range of products and services, remain agile and flexible in order to adapt to a dynamic context.
- Adapt infrastructure to offer an integrated omnichannel experience.
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