Customer experiences key to retail
The future of retail does not lie in the next biggest technology, but in what enriches the lives of people and what adds value, experts at Gitex Technology Week 2017 noted.
Speaking at the retail sessions on Monday, Ian Khan, a technology futurist and advisor, noted that retailers have to be extremely cautious about their approach towards customers in today’s technological era. “At the end of the day, it is about the people, and how you add value to their lives,” he said.
Highlighting technologies that are increasingly being used by retailers across the globe to do just that, Khan listed Artificial Intelligence (AI), and Augmented Reality (AR) as two examples.
“Ikea, Converse, and Lego all have apps that you can download and use as soon as you enter their stores which use AR technologies,” he said. “There are stores where you can virtually try on shirts and dresses and an AI will tell you about which colours compliment you, and which sizes are right for you. And you can do all of this without having to physically try on the clothes.”
He noted that for luxury retailers, this is good news because there is a lot less wear and tear on expensive products, and the chances of those products being mishandled is significantly reduced. “In a market like the Middle East, where the luxury market makes up a significant portion of the retail industry, this technology has the power to significantly improve performance.” Another type of technology that has the potential to impact retailers in a positive way is the Internet of Things (IoT) and wearables. With IoT, it is possible to use data intelligently to solve a number of issues related to stocking shelves, ordering inventory, and online deliveries.
However, while technology must be kept in mind when making business decisions, retailers must remember that there are certain factors that have to be at the forefront when looking at strategy. The first, Khan says, is engagement.
“Engagement is all about information and building a relationship with your customers,” he said. “Another thing that you have to focus on is the promise; in the world of branding, the promise is the brand. Every brand has a promise that it delivers to its customers.”
When it comes to millennials, the brand promise is very important, Khan stressed.
“In a way, it has changed because the focus for many consumers is on instant gratification. Retailers need to be on the top of their game when it comes to delivering, and they have to deliver it well,” Khan said. “Also, it is important to keep in mind the positives when it comes to collaboration. Lastly, brands and retailers need to focus on serving a need. The most successful brands are those that have identified a need in the market and then focused their products towards helping people with that need.”
— rohma@khaleejtimes.com
there are stores where you can virtually try on shirts and dresses and an AI will tell you about which colours compliment you Ian Khan, technology futurist and advisor