The imperatives of Digital First strategy for Retailers

1. For over 2 decades, Mindfire has partnered with global companies across every major industry to make stellar software products. With its highly adept team of 650 + people passionate about technology, Mindfire effortlessly connects the dots between people, technology, products, and business.

2. What does a digital-first strategy mean? A buzzword today, the digital-first strategy simply put, relates to the approach of making digital mode the primary mode of all marketing-based communication. While the first word that comes to our mind when someone mentions the word ‘digital’ is a smartphone or internet, it is in entirety an overarching approach that is adopted by businesses for a more productive future. If we go by this definition of digital, how it can impact a business is a topic of significance, especially in the time and context that we are currently living in. It is challenging for the market to remain constantly agile, open, and flexible to change. Being ‘digital first’ in today’s times means beckoning businesses to become sassy and smart leaders with countless technology solutions emerging on the horizon.

3. What makes the Digital First strategy work? More than just Technology - An in-depth report suggests how digital-first strategy should not be confused with technology on auto-pilot. It is an increasing customer-centric approach that uses the digital medium to know what its customer wants. Digital First means beyond just technology; it is the idea is to be of help to the consumer, instead of plain selling. It’s all about the Trust- No customer will buy from a brand that they do not trust. A little assistance goes a long way. Hence, the positive implication of digital-first on brands and retailers. Guiding the consumer, and offering meaningful suggestions and links to content are some of the ways in which trust can be earned with the clientele. This tool is helping businesses in making real connections with buyers instead of an engagement, based on the intent of selling alone.

4. Values- Digital-first strategy is also about the values of transparency and quality services. While there are a plethora of product options available on the internet, the buyer is likely to go back to the brand which provides them with the maximum value both in terms of accessibility, availability in terms of communication and product quality. ‘Digital first’ in the times of Covid 19 As per a report published by Forbes, the ramifications of the Covid 19 pandemic have been more deeply felt by consumer- facing industries. For more than two decades, global giants like Walmart Inc and Amazon dominated the retail market with speedy customer engagement and efficient service quality. Today, we are living in a world that is growing more digital with every passing year, making things more complex and competitive than ever. In 2021, over 2.14 billion people worldwide are expected to avail goods and services online, a sharp increase from 1.66 billion in 2016.

5. While the age of technology poses multiple challenges, it also presents an opportunity for businesses to become more inclusive. A report by Deloitte throws light on how technology is helping retailers scale up, make operations more efficient while making lives significantly easier for customers. Retailers are evolving to improve their engagement in a digitally dominated market. According to the same report, some of the key drivers responsible for shaping digital trends are as below: 1. Growing number of smartphone users- 79% of global smartphone users have made a purchase online using their mobile devices in 2021. With the rise in middle-class population, there has also been a growth in purchasing power. There are over 455 million internet users in India, 977 million in China and over 275 million in the USA.

6. 2. Favorable demographics - With a global presence of the internet, rise in the millennial population and a growing number of smartphone devices (62.4% people in the world own a phone in 2021); it is more likely that tech-savvy people will prefer digital means for communication and shopping. 3. Internet of Things (IoT)- 77% of retailers believed that the Internet of Things or IoT has significantly transformed the way consumers think about their shopping experience. IoT has consumer loyalty, grown sales, offered personalized shopping while also improving inventory management. Post the pandemic, digital first initiatives have taken an overdrive primarily in healthcare. But once the new normal settles in, there will be immense pressure on other customer facing industries - retail being one of them.

7. Challenges: 1. Unwillingness to change: Digital-first strategy often brings many changes that companies are not easily able to adapt to. Retailers cannot adopt digital strategy unless they integrate technological advancement with their overall business outcomes. For bigger organizations, the scale of this change management will grow in proportions. 2. Lack of expertise: Digital First strategy needs subject matter expertise which is not very easy to find. Only a combined effort of talent and technology can ensure a smooth transition for such a giant overhaul in companies. The solution is to find a potential partner who can make the job easy. 3. Change in organizational structure - Large companies, both retail and non - retail have known to become comfortable over time with their organizational structure. A digital-first strategy indicates the need for businesses to evolve for speed and efficiency. To accomplish that, employees, hierarchy and teams might undergo some changes that most companies are not open to.

8. 4. Budget management: Companies looking forward to relinquishing old and slow methods for the fast and few might often find the change expensive. Being aware and prepared for the expenses during digital transformation is the key. While it is a rat race between brands outside, companies can pace their growth in a way that can be easies on their pockets. With consumers worldwide demanding data-driven results, it is important to know the difference between digital-first strategy and technology. While buyers globally are adapting to different forms of technology, digital transformation is driving businesses. Technology is the tool while digital-first is the approach. If you are one of the businesses committed to implementing a digital- first strategy it is important to know that technology is only the means to an end. How you deliver your product and service is of more significance than what tool you use to do it.

9. The future of sales and marketing is going to be drastically different between pre-pandemic and post-pandemic times. With the digital-first strategy shaping the way both retailers and customers think, only time will tell the extent to which it influences the global market in the coming years. Mindfire Solutions, is a 20+ years old, 650+ people software development and testing services company with a global clientele. We offer custom web and mobile solutions for companies across all major industries.

10. Content Source: Quora Contented by: Mindfire Solutions