Digitalization in Modern Retail

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by Bethany Baird4 views·Updated Jun 24, 2020
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  1. Hello. My name is Bethany Barrett, and I'm here with
  2. you to discuss the impacts of digitalization and modern retail.
  3. But what does that mean exactly?
  4. Digitalization is the improvement and advancements in technology that are
  5. affecting the current retail environment.
  6. As you can see, there are very many aspects that
  7. we're going to talk about today that all play a
  8. huge part in the growth or decline of a retail
  9. business globally.
  10. One major influence on the marketing and advertising side of
  11. modern retail is the growing use of social media Cos
  12. air growing their brand recognition through social media outlets like
  13. Facebook. Twitter in instagram, just to name a few.
  14. When presenting themselves on these sites, they often use their
  15. own posts that are created by their marketing and advertising
  16. teams to display onto the Internet.
  17. This cuts out the need for third party marketing and
  18. relying on other sources to display their advertisements.
  19. Another faction that companies rely on to market them in
  20. social media is something called an influencer.
  21. Now an influencer is defined us, someone who has the
  22. power to affect the purchasing decisions of others because of
  23. his or her authority, knowledge, position or relationship with his
  24. or her audience of following in a niche with whom
  25. he or she actively engages.
  26. This simply means someone who has a lot of influence,
  27. whether it be via of log, a YouTube channel or
  28. just a popular INSTAGRAM with a lot of followers who
  29. can impact the sales of an item just by recommending
  30. them to their viewers or followers.
  31. Companies are using these influencers toe have their brand connected
  32. to more people globally.
  33. Digitalization in modern retail environment is also largely impacted by
  34. the growth and advancements made.
  35. An email, email, marketing and advertising has been around for
  36. over a decade.
  37. More effort has been put into email marketing to track
  38. data from the consumer to measure the effectiveness of the
  39. emails, Let me share with you an excerpt I found
  40. most most intriguing from Chapter four of email marketing in
  41. A Digital World by Hannah Swain and Zeman.
  42. One key benefit of email marketing is that it's highly
  43. measurable, and hence it is possible to determine a return
  44. on investment fairly accurately and precisely.
  45. It proves why investing an email marketing is so important
  46. for retail locations.
  47. You can see how many people on your email list
  48. are opening the emails, deleting the emails and even seeing
  49. what emails are considered undeliverable.
  50. The data obtained also tracks what emails the consumer is
  51. clicking onto the breaking them directly to your site.
  52. Email marketing has also changed the way that subject lines
  53. and timelines are seen, since most viewers use their smartphones.
  54. Nowadays, companies rely on catchy taglines, or emojis, to draw
  55. the reader's attention to them, like the photos that I've
  56. include for my own personal email.
  57. They include blurbs about special deals going on to make
  58. it more likely to have follow through on the consumers
  59. end. As you can see, I have selected Tom's and
  60. Macaron um, they both have little emojis in their taglines.
  61. But as you can see in the blurb of the
  62. Tom's email, it distinctly points out there free shipping and
  63. free returns, which makes a consumer more likely to click
  64. on it.
  65. Now. Speaking of those handy dandy smartphones that almost everyone
  66. house, they allow the consumer to do so much more
  67. with all of the information that companies give them with
  68. their own personal applications for their own personal devices.
  69. Digitalization has pushed companies create applications specifically for your device.
  70. In most cases, they remember you.
  71. They remember what you purchased through your app.
  72. They remember your sizes and all of the things that
  73. you like just to customize the app to make it
  74. work uniquely for you.
  75. These applications are also very interactive, like in my Warby
  76. Parker application.
  77. It allows you to use the camera on your phone
  78. to virtually try on any of the glasses that they
  79. have on their site.
  80. It's technology and retail working in tandem for the benefit
  81. of the consumer.
  82. And what's better than that?
  83. You ask discounts and promotions that are linked to the
  84. download of the application, or only an application use.
  85. Digitalization is helping the consumer get a better price for
  86. the goods and service is that they need and use
  87. every day.
  88. Now, with all of this data and feedback that the
  89. company's they're getting from tracking their emails, their social media
  90. and the information that the game from the smartphone applications,
  91. sometimes companies don't use that to their benefits.
  92. These are called consumer insights in consumer insights All over.
  93. The few back that we just talked about comes from
  94. those surveys that you get in your email, the data
  95. collected from your emails and even in the revenue reporting
  96. for your company.
  97. These are all very key to having an understanding of
  98. your consumer.
  99. Even with an increase in sales due to digitalization and
  100. having everything at the consumer's hand, companies still need to
  101. make changes to allow for growth of their business.
  102. If they do not act upon their consumer insights, consumers
  103. will move their business elsewhere to a company, for example,
  104. that actually listens to them and makes changes based off
  105. of their needs.
  106. Now some companies that are thriving during the room of
  107. digitalization in modern retail are still struggling during today's day
  108. and age due to the detriments and impacts of cove
  109. in 19 the virus has four stores to close their
  110. doors and online shops to prevent employees and consumers in
  111. their locations from getting and spreading the illness to quote
  112. authors Mahesh Worry and Friedman.
  113. Even as they have worked to transform themselves and e
  114. commerce with applications, websites and in store exchanges, the outbreak
  115. has laid bare to how dependent department stores have remained
  116. on their physical outposts.
  117. This quote truly shows how the loss in revenue from
  118. the brick and mortar locations has had a huge impact
  119. on businesses that were thriving during the age of digitalization
  120. and has forced some into going out of business.
  121. As we continue to grow technology, things will certainly begin
  122. to change globally.
  123. As these changes in technology happen, the retail industry will
  124. continue to push the boundaries of technology to bend it
  125. to their needs.
  126. This will push more companies to drive results in their
  127. areas of opportunity and improve their business metrics and, of
  128. course, continue the influence on the market around them.
  129. Thank you so much for joining me today for the
  130. impacts of digitalization of modern retail.
  131. I hope you have enjoyed.