Digital Transformation is key to getting Data insights for deeper Retail Penetration.
The digital divide in retail is widening now more than ever. The downpour of the pandemic has resulted in two types of retailers – ones who were forced to shut shop and the ones who recorded growth by choosing digital transformation. Thus the concept of “survival of the fittest” has never been more evident in the context of retail.
A recent publication in Forbes talked about the three types of shoppers that retailers need to cater to – people who want to shop fast and be done with it, people seeking value for money, and those seeking inspiration that can make them indulge more in the shopping experience.
Each customer can supposedly be all types of shoppers while shopping for different products, and for every product, there can be all types of shoppers.
That’s because the shopping experience is personal to each shopper, who might be in a different mindset every different day.
So how can global FMCG brands uniquely cater to each individual?
With the help of data.
An example of this is Bausch & Lomb. One of the world’s largest suppliers of contact lenses, the brand digitally transformed its supply chain to be able to sell its 30,000 SKUs without any error. They enabled the Bizom Retailer app in their downstream trade, to let retailers place orders without calling distributors. As a result, orders could come in at any time. And with the right data from the Retailer app, the brand only had to monitor if the distributors are sending the right SKUs.
Further with the help of the Retailer app, Bausch & Lomb shared new trade promotions directly with their retailers at a click which otherwise would have taken weeks for their salespeople to get done. As a result of introducing digital retail to the downstream trade, Bausch & Lomb was able to reduce its delivery time to 24 – 48 hours.
Piyush Chowhan, Group CIO of LULU Group, recently said that retailers need data platforms for gathering and processing consumer data and providing them with personalized products and services. Hence, retailing needs to transform from servicing the customer to creating a great customer experience, which can only be achieved by digitally transforming the FMCG supply chain.
But while digital transformation is the only way forward, it’s crucial to know when is the right time to undergo the transformation journey.
In an HBR article, a Mckinsey partner shared 5 questions that the top management of FMCG companies should ask themselves before going digital. These five questions urge companies to look within themselves and figure –
- If the top leaders are aware of the scope of digital transformation
- The fundamental changes and values that digital transformation can bring upon
- How the effectiveness of digital transformation can be measured
- If the company has the talent to aid the transformation journey
- And, if the brand is aware of the emerging threats
Each question helps in setting the company’s long term vision right.
When the top management is aware of the scope of transformation, only then can sales teams be directed in the right direction. Many feel digital transformation cuts down cost and increases efficiency. And while both are true, a retail transformation has also proven to increase revenue streams for brands.
In terms of measuring effectiveness, brands need to track improvements in outcomes, and changes in behaviours and processes. Like, seeing how long it takes to implement an idea in the market or how many processes can be automated in a limited time.
Sadly, such things are easier said than done. FMCG brands focus on hiring the best-in-class salespeople who are driven with the zest to expand the business. But to go beyond the sales book and realize the opportunity in creating a digitized supply chain, brands need to partner with a solution provider who understands their business and will ask and answer the above questions.
For example, digital transformation brings forth the question of cyber-security, which needs to be dealt with cautiously. It’s the data of millions of customers available on a digital screen. So, while investing in retail automation solutions, FMCG companies should look for cloud-based solutions.
Most importantly, the solution provider should be able to understand & align the brand goals with the customer expectations and create an enhanced customer experience for end-users.
For this very reason, while transforming the supply chain of FMCG behemoths like Parge Argo, Hershey’s, Reckitt, Mars, GCPL, our teams spent an extensive amount of time to understand the goals the brands chased, in order to provide them with an integrated Retail Intelligence solution that not only helped them to boost their sales exponentially but also to expand beyond their horizons.
To conclude, the urgency and capability of digital transformation in retail have become crystal clear due to the pandemic. Even by automating small processes within the supply chain, brands are seeing a remarkable change in their sales efficiency.
To know more about the possibilities of digital transformation with Bizom, connect with our team at firstname.lastname@example.org, and schedule a free demo.