Three Reasons Why Connectivity Is Essential for the Future of Retail

It was unimaginable that you could trade your newspaper for a device that delivers real-time news thirty years ago. The antiquated daily newspaper industry was wiped out by the advent of social media and the explosion of the internet.

The retail industry is undergoing a similar shift to real-time connectivity, just like the evolution in the news media industry. Modern commerce demands connected retail systems that offer real-time, on-demand retail data between retailers and brands. No longer can retailers and brands expect to be competitive if they rely on inefficient and disconnected processes and outdated data.

Yet, a 2017 survey found that 80% of respondents are satisfied with their experience.MarTech SurveyOnly 52 percent of brands use software to manage product content internal. This means that brands in today's digitally connected age rely on disconnected spreadsheets to receive and share valuable information that will impact their bottom line and that of their retail partners.

Retailers and brands must embrace connectivity in the midst the retail revival. Consumer preferences are constantly changing and it is becoming more important to provide exceptional shopping experiences.

Improved data = better experiences

Retail has changed to value customer experience and brands must work together to meet these expectations. Data is key to understanding the needs of consumers and giving brands the tools to provide personalized service. Indirect data is increasingly being used by brands to help them navigate the customer journey. This results in a fragmented and irrelevant customer experience. Retailers and brands will be able access the same real-time data to help them align their priorities and create brand stories that are relevant and on-message.

Speed is essential

The proliferation of smartphones, technology and the internet have made it easier for consumers to be connected than ever before. Retail must embrace data to keep up with the times in an age where trends are constantly changing and consumers' attention is becoming more difficult to grasp. Retailers and brands alike can use system-to-system connectivity to gain access to data that will allow them to respond quickly to consumer demand. Brands and retailers who rely on disconnected, outdated processes to serve customers run the risk of being outmatched.

Accuracy is essential

Inaccurate data can make it nearly impossible to establish brand retailer alignment and connectivity. Retailers and brands will be able ensure that product data is accurate and complete in real time. This feat would not be possible without technology and system to system connectivity. A 2018 survey found that 80% of respondents said they were satisfied with their product data.Study by Deloitte DigitalBrands that devoted 2x more time to data saw a 10% increase in revenue. The manual systems that were in place are outdated and slow to adapt. This will allow busy retailers to save time and enable them to access real-time data. Brands will also be able to make better business decisions because they have accurate information across the entire market.

As in the past news cycle, those who resist change or maintain the status quo will be left behind. Retail's renaissance has opened the door to many new innovations that will transform the industry. System-to-system connectivity is one of the most disruptive changes in the future.

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Ecommerce Rebuilds Brick and Mortar

A wave of new brick and mortar retailers is emerging as brick and mortar giants like Sears and Toys "R" Us begin to close down. These brands are coming from where? Of course, the internet.

Most notably, the Instagram darling turned mega beauty brand Glossier opened a flagship store in New York City last month.  PYMNTS.comGlossier writes that while online sales account for 90 percent of its revenue, the company's ethos is that it does not rely on brick-and-mortar or ecommerce to run it. Weiss describes the company as "emotional commerce," meaning that art and discovery are still central to retail. The Glossier flagship shop is not a traditional store. It is a tourist destination that allows people to come together and create content. You can also post to social media.

Interview with theNew York TimesEmily Weiss, founder and chief executive officer ofGlossierAccording to a customer, once they "got upstairs, but they didn't shop and then go...They really hung around, sometimes for hours." One customer ordered pizza at one point. Glossier employees are called "offline editors" which reinforces the notion that the Glossier store's purpose is to offer a curated, millennial pink-colored Glossier experience.

Online brands are opening expensive flagship stores and investing heavily in brick and mortar real property. There are many reasons why physical stores are important.

A brick and mortar presence:

Customer experience enhanced

Customers can interact with brands in brick and mortar stores, which is something that is not possible online. In the Times Weiss says, "We are not focused on selling stuff... It's really important that you create spaces and experiences to help you feel things." A physical store allows customers to connect with brands on an emotional level that's impossible online.

Brands have staying power

A brick and mortar store gives your business credibility and helps you stay in business. Online brands such as Warby Parker, Bonobos and Everlane have opened physical stores.

Offers higher conversion rates

Online stores convert at a 30% higher rate than brick and mortar stores. According to theNational Retail FederationCustomers are more likely to buy something if they're in a fitting room. A physical storefront can be a great way to convert more customers.

Despite headlines about store closings, the actual number of stores opening in 2018 will exceed closures by approximately 4,000, which is quite a surprise. Despite all the hype about ecommerce and a retail apocalypse, only 10% of global sales are done online. You can turn your brick and mortar store into a tourist-worthy destination by following the ecommerce brands' steps.