Digital is where it’s at in the retail industry
Nearly everything is digital these days, whether it's work and personal emails, mobile apps that help users get things done or even bank accounts that can be managed easily from a variety of devices. Digital has made its way into the retail industry, as merchants have adopted solutions and systems that allow them to better oversee their operations. Because of this, consumers now expect more digital interactions with brands, and this means that they want personalized and relevant messages when communicating with retailers. This has led to an increased focus on digital within the sector, and if businesses fail to implement tools that can provide what shoppers are looking for, then they could see declines in retention and loyalty.
Facts point to digital importance
Digiday highlights the growing importance of digital solutions for retailers by citing several studies which have found that mobile apps, social media and personalized communications are exactly what can keep customers coming back. The source reports that research by the CMO Council revealed that more than half (54 percent) of consumers would stop doing business with a brand that does not offer them content that is relevant to their needs. Another study by Mobile Marketer found that 57 percent of individuals will do the same if a merchant has a "poorly designed" mobile website.
Social media is also being used by customers to connect with companies, as research from Compendium discovered that among the Top 100 retailers, the average number of Facebook likes comes in at 1.2 million, the source explains. However, these brands are only seeing a 2 percent engagement rate on the social site, highlighting the fact that not enough is being done to interact with shoppers through this medium. In addition, Exact Target revealed that seven hours is the average time it takes for a merchant to respond to a consumer inquiry through social media. This is too long of a time span and could encourage shoppers to buy their products elsewhere, the source points out.
Consumer demand for digital needs to be met
In a separate article, Digiday writes that digital is becoming more of a priority for companies, which will only serve to benefit their operations. Personalization based on past purchases and other details is being used by many brands to boost loyalty, and improvement to mobile sites and apps are being factored into merchants' daily tasks. The source also reports that social media is being utilized for engaging customers rather than for increasing sales, but this is helping to establish trusting relationships between retailers and consumers.
