What technology challenges the retail industry may face in 2022? - PDF document

The retail industry has been facing immense pressure to get up to speed with technology and improve its efficiency, operational effectiveness, customer experience, and of course, profits as well as reduce costs. With all the changes in customer expectatio ns, the retail industry has many technical challenges ahead. The next five years will be critical for the retail industry and data analytics companies to face these challenges. By adopting the latest technologies and innovations, they can thrive in the competitive busin ess environment and deliver superior value to their customers. Let’s get further into the insights, these are the top technology challenges that retailers may face in 2022. Customer Insights Analyzing customer data to better understand customer preferences and needs is a key technology challenge for retailers. This can be used to develo p a robust understanding of what customers are looking for, when they are looking for it, how much they are willing to spend on different items, and how often they come back into the store. The more retailers know about their customer preferences and nee ds, the better - equipped they will be when tackling other technology challenges, such as updating their digital marketing efforts. What's even more exciting is that the information collected from analyzing customer data (for example, age range and gender) c an also be combined with geographic data to determine the most attractive opportunities. With this information, retailers will know where their target audience resides and how best to market themselves there. In addition, with accurate knowledge of who you r customers are and where they live, retailers can make appropriate adjustments to keep up with changing consumer demands. Data Security In 2020, the General Data Protection Regulation (GDPR) will be enforced for retail analytics . The GDPR can require a company to verify and regulate its use of customer data. Though there are various m ethods to encrypt data, most systems have flaws, which can lead to theft or misuse of customer information. GDDR also states that organizations must report any data breaches within 72 hours. Additionally, they must notify authorities of any serious data b reach as soon as possible. When customers are informed of a breach, they may discontinue using the service altogether. Market Trends In the retail industry, growth is stagnating. The number of physical stores is shrinking, with many chains like Sears and Macy's an nouncing plans to close hundreds of stores. Shoppers are increasingly buying on smartphones and using social media sites like Facebook and Instagram to research and purchase items. The other challenge retailers face how to keep up with an ever - changing con sumer. With more people living alone than ever, retailers are taking cues from food makers offering personalized products that cater to different diets and lifestyles. Payment Security It will be necessary to ensure the customer's data is safe from manipulation or fraud. Customers will also need to be confident that their credit ca rd information won't be compromised, and retailers must proactively maintain a secure environment for storing this information. More seamless payment methods may also reduce time - to - checkout, leading to increased sales. However, with more than half of ret ail transactions now completed on mobile devices, security measures must be taken seriously. Compliance & Regulations Retailers who don't develop good policies and controls for data protection could have to pay up to $4 billion in fines for violations. In addition, retailers will face heavy penalties if they fail to protect consumer information like credit card numbers and Social Security numbers. They'll also be liable for customer complaints or lawsuits resulting from stolen information. At the same time, new requi rements are emerging that retailers must comply with under General Data Protection Regulation (GDPR) which is set to go into effect on May 25th. Unfortunately, some stores may not even know about GDPR requirements until it's too late; retailers need to ens ure they're informed about all compliance issues before they become an issue. People Skills Retailers will need to foster their people skills, including salesmanship an d customer service for big data analytics . Engaging the consumer is key, whether it's online or in - person. The ability to articulate the benefits of your product may be what separates you from the competition. In addition, retailers will need to invest more heavily in enhancing their customer service experience. Conclusion In conclusion, it is important to stay ahead of the curve and start thinking about how retailers will meet their customers' demands by looki ng at some of the challenges they may face. Among other things, one challenge facing the retail industry will be competition between companies. Suppose retailers do not understand what consumers want and need based on technology challenges . In that case, they will find themselves playing catch - up and competing with other companies who have already begun to innovate their business models to create an edge over competitors. � Keep learning with us, visit us at https://humanata.ca