A new white paper from digital marketing agency DAC Group offers reasoning for recent Canadian retail closures. According to the organization, retailers must focus on customer service and the digital transformation of the industry in order to stay afloat.
DAC notes that personalization is key when it comes to successful customer service. According to the group, this comes from retailers getting to know their market very well, especially by tapping into data.
The paper also points to recent research from The Boston Consulting Group, which suggests that using digital technologies and proprietary data to create a one-of-a-kind in-store experience can create revenue increases of six to 10 per cent. This represents two to three times faster growth than other companies.
What’s more, it was noted that some retailers are struggling due to their failure to create engaging and inspiring experiences for customers. With innovators like Amazon changing the retail game, businesses need to adapt their offerings at a much faster rate.
“The future belongs to those retailers who constantly test, innovate and really take chances,” says Diane J. Brisebois, president and CEO of the Retail Council of Canada, in the report.
Providing a seamless omnichannel experience is crucial to this, says DAC. The paper notes that both digital and mobile channels are necessary to success, and having a strategy around those channels is vital.
This being said, research also found that bricks-and-mortar retail is far from dead. Experts note that challenge for retailers lies in maintaining the right balance of in-store and online operations as the industry continues to evolve.