By Amber Hovious (pictured).

VP of Marketing & Partnerships, Teamwork Commerce

Originally posted on: PCR Magazine March 2023

Retail is notorious for being a highly competitive sector with small margins. As such, the need for evolution is imperative in order to succeed. How do you think the retail industry has changed over the past couple of years?

Consumer behaviour remains at the heart of the retail industry and there’s no denying that any change in consumer trends has a direct impact on retailers. In the past few years, retailers have had to cater to evolving consumer demands both during and after the pandemic.

The pandemic changed everything when it comes to consumer expectations and with retailers needing to appeal to customers in any way that made them feel comfortable throughout lockdowns, an effective omnichannel strategy became an absolute necessity for retailers wishing to remain afloat.

Today, having an omnichannel presence does not ensure success. Consumers demand a huge amount of personalisation and convenience in their shopping. Not only do retailers need an effective omnichannel strategy, but they need to be able to cater to customer needs at every touchpoint – from initial interaction through to transaction. As technology evolves, delivering this is becoming more feasible, but in order to operate effectively, all technology deployments must be able to communicate seamlessly with each other.

2022 brought positive outcomes for retailers with post-pandemic recovery and the revival of brick-and-mortar shopping. But it did not end without challenges. As we consider the outlay of this year, what are the biggest challenges facing retailers in 2023?

One of the biggest challenges for retailers in 2023 is economic uncertainty. The recession is likely to squeeze consumer shopping budgets and make customers more frugal when it comes to making purchasing decisions. Of course, the knock-on effect here for retailers is the risk of reduced sales, whether customers turn away completely from stores due to item prices, or have found alternative products at lower prices from competitor retailers.

Furthermore, ongoing issues such as the labour shortage and supply chain challenges only make it more difficult for retailers to function smoothly. Consumers today want to leverage a blend of both physical and online sales channels. Retailers that lack the appropriate technology and staff to facilitate this will find it difficult to maintain the balance between online and offline.

In order to thrive in today’s competitive landscape and deal with 2023’s challenges, many retailers are turning to technology for support. But what should they be investing in?

There is no single technology or software solution that retailers should lean on when it comes to meeting consumer needs and dealing with today’s challenges. Retailers must recognise the value of a modern tech stack that includes a range of state-of-the-art technologies integrated with each other, allowing a seamless

flow of information across different touchpoints. However, one important factor to consider is complexity. Retailers should ensure that they can deploy a system that provides a single pane view of the sales funnel across different online and offline sales channels. This can create a streamlined and seamless operation that delivers high level efficiency as well as a top-quality customer service.

In addition, retailers must continue to update their tech stack with the latest solutions to meet evolving consumer needs. For example, using an outdated point-of-sale (POS) terminal is no longer an effective means to serve consumers in 2023. Instead, retailers could consider deploying mobile POS (mPOS) that can help sales associates serve their customers in any part of the store, minimising queues and improving customer satisfaction. Having an advanced mPOS that communicates seamlessly with other integrated platforms – such as order and inventory management, customer relationship management (CRM), and analytics – allows retailers to strengthen their omnichannel capabilities. Retailers must look for omnichannel technologies that can be integrated seamlessly and function in real time if they wish to set themselves apart from the competition.

With evolving demands of the sector, technology has surely become an integral part of the retail industry. How do you think technology will contribute in 2023 to drive personalisation?

Bricks-and-mortar is likely to play a vital role in 2023’s shopping behaviours. eCommerce is quick, easy and convenient, but customers still flood in-store for the experience they receive – a friendly, personalised approach from in-store associates, and an environment where they can feel products, try them on and enjoy shopping. To ensure a seamless yet personalised in-store experience for customers, retailers can lean on the latest clienteling platforms that harness the power of data and allow sales associates to deliver individualised experience. Through individualised clienteling, store associates can curate experiences of consumers based on their previous interactions. For example, letting consumers know that the item they were waiting for is back in stock or offering them with personalised discounts – all this is achievable effortlessly with a clienteling platform. Modern clienteling platforms allow associates to send bulk messages through email, text or Whatsapp while ensuring they look like they were sent individually. This provides retailers with a great opportunity to follow up with consumers even after they have left the store which can help them build strong relationships in the long-term.

Personalisation has long been on the list of retailers’ priorities to help them stand out from the competition. 2023 is likely to see retailers take personalisation to the next level by customising not just products and offers, but the customer experience at every retail touchpoint throughout the purchase journey to ensure a highly curated experience.

Convenience in combination with personalisation can certainly drive consumer satisfaction. What further steps can be taken to ensure a high level of convenience for consumers?

As consumers become accustomed to convenience and they demand a frictionless checkout experience. One of the key factors in the checkout experience of consumers is the waiting time. Long queues can often cause frustration, so retailers must have a queue-busting strategy in place. With mPOS retailers can often serve consumers more quickly and at any part of the store regardless of the internet connection. This is a game changer in minimising long queues and reducing waiting times.

Queue-busting can be taken a step further, too. As was demonstrated at NRF 2023: Retail’s Big Show, RFID powered self-checkout could soon revolutionise the retail industry. The solution allows consumers to scan all items in their shopping basket within a matter of seconds, saving them a significant amount of time at checkout while drastically reducing overall queue times for customers.

There is no doubt that the retail sector has continued its technological growth rapidly in the past couple of years and the future looks optimistic. Is there anything else you would like to add looking at the future?

The retail industry has many exciting things to unveil in the near future as consumer demands continue to evolve. Retailers who want to prosper must stay up-to-date with these trends and must continue to update their tech stack with cutting-edge innovations. Taking advantage of an all-encompassing retail technology solution can help retailers sustain their growth in the long term.

In today’s modern retail world, retailers are harnessing data-driven technologies to drive their growth. From supply chain through to point of sale systems, technology has been helping retailers meet changing consumer needs in a myriad of ways.

However, in today’s environment, retailers need to be able to do more than simply meet customer needs, or follow retail technology trends. Instead, they must be able to provide the ultimate customer experience while simplifying their operations at every retail touchpoint. With changing consumer demands, a retailer’s technology must be able to evolve and scale with those needs.

While online purchases may be easier for consumers, they still crave the experience of in-store. In brick-and-mortar stores customers can see, feel and even try on items before purchasing, and this option makes in-store shopping a highly popular option for consumers.

However, shopping in-store isn’t necessarily the most convenient option for customers. By delivering omnichannel solutions – such as buy-online-pickup-in-store (BOPIS) and buy-online-return-in-store (BORIS) that enable consumers to leverage both online and physical sales channels, retailers can create seamless experiences while still driving customers to the shop floor. This makes the role of the in-store experience more important than ever.

Retailers need to advance their in-store technologies and integrate them with their wider retail offerings to strengthen omnichannel capabilities. This needs to be done while providing a frictionless customer experience at all touchpoints.

However, with an abundance of solutions available in the market, it can be difficult for retailers to select appropriate solutions that can help them drive infinite scalability. Retailers must have a tech stack that enables them to improve in-store experience, simplify overall retail operations, and ultimately help them grow.

Advanced POS technology deployed in combination with cutting-edge analytics and reporting tools can help retailers drive sustainable growth.

Simplifying In-Store Activities

Waiting in long queues can be frustrating for consumers and will sometimes even turn them away from a store. This ultimately negatively impacts customer relationships. Instead, retailers need mobile point of sale (mPOS) software with user-friendly interfaces that can enable them to check out customers from anywhere in-store. This allows them to eliminate queues and deliver a high-quality customer experience.

Teamwork Commerce’s Mobile POS software operates exclusively on cutting-edge iOS devices with Apple UI/UX, making it simple and quick for in-store associates to operate. The state-of-the-art solution is easy to integrate with new payment providers and allows retailers to expand their payment functionality.

What’s more, the software runs on iOS smartphones and tablets and allows staff to serve customers from any part of the store regardless of internet connection. This significantly helps in queue busting and streamlines the entire checkout process. Retailers must understand that the capability to deliver convenience, to both staff and customers, is likely to be one of the key drivers of growth in 2023.

Harnessing Data but Securely

Many retailers leverage data to personalize shopping experiences for their customers. However, not all seem to have appropriate measures in place to minimize the risk of a cyberattack. Failing to protect this data not only can lead to regulatory penalties but also put the reputation of businesses at risk, ultimately slowing their growth.

Retailers must ensure that they have appropriate tools not only to analyze data, but also to protect it. For instance, Teamwork Commerce’s secure and GDPR-compliant Customer Relationship Management (CRM) software uses the highest level of security to protect customer data. The software keeps the data in a separate place and provides access as needed by associates, devices and integrations without ever revealing or importing customer information into a local system.

In the CRM, with a holistic view of data, retailers can better visualize consumer purchasing habits and even customize discounts. Customers can also enjoy their earned loyalty benefits across all sales channels, thanks to the Teamwork Commerce solution that keeps the data centralized. What’s more, in-store associates can also access customers’ profiles in their mPOS app which can help them build meaningful relationships with in-store shoppers. In this way, the cutting-edge CRM helps retailers leverage data to its full potential while keeping it safe and secure.

Maximizing Visibility with Real-Time Reporting

The ability to track performance consistently in real-time plays a key role in helping retailers make informed decisions. In particular, retailers who operate at a larger scale must have clear visibility of their wider operation including stores, online channels, back-end and warehouse operations.

This allows them to make effective decisions quicker, such as increasing stock levels for a product in demand or managing discounts based on their inventory. Manual data entry is time-consuming, not always accurate and does not fit in today’s retail environment. Instead, retailers need automated reporting.

Teamwork Commerce’s Dashboard provides retailers with next-generation analytics and reporting capabilities. The solution delivers real-time metrics to retailers, such as live store performance, customized reports and KPI dashboards, all at their fingertips. Retailers can easily access the dashboard through the mPOS app and track their sales, trends, and other operations in real-time from any part of the world. This can help retailers spot gaps they might have missed and provide them with limitless opportunities to improve.

In what is a highly competitive industry, retailers who act based on real-time information about their customers, business operations and industry trends can put themselves ahead of the curve. Incorporating solutions that work collaboratively in real-time puts retailers in a winning position in both the short and long term. Having cloud-based technology deployed all the way across operations, retailers can scale their businesses as and when it is required and ensure continued growth.

Wondering which technologies can be helpful to growing your retail business? Book a live demo today and find out how Teamwork can help.

Today, shoppers demand convenience and have become accustomed to individualized customer experiences. As soon as consumers walk into a store, they expect high-quality interactions with well-trained staff who are able to deliver top-tier customer experiences. Retailers who make customers feel valued leave a positive impression and are likely to drive loyalty. In fact, positive customer experiences make 94% of consumers more likely to shop again with the same retailer, with 82% also more likely to further recommend the brand to others.

Personalization has become key to gaining the edge over the competition and providing value to customers. From answering product inquiries to suggesting consumers’ preferred alternatives, store associates must be capable of providing individualized experiences. To be able to ensure a high-standard customer experience in brick-and-mortar stores, retailers must strengthen their technological capabilities that can help in-store staff to deliver the desired experience.

Taking In-Store Personalization to the Next Level

In the modern retail panorama, retailers must leverage a range of data-driven technologies to better understand their customers. Clienteling, where retailers leverage consumer data, such as their purchase history, shopping habits, buying frequency, and marketing preferences – can enable retailers to tailor customer experiences and develop long-term relationships that drive customer retention.

However, many retailers do not seem to have access to the appropriate technology that empowers their store associates to deliver clienteling based on real-time data. To remain ahead in such a competitive environment, retailers must deploy all-encompassing solutions that leverage consumer data in real-time from both digital and physical platforms. With this, clienteling can become significantly more effective and also bolster retailers’ omnichannel capabilities.

Teamwork Commerce and Endear’s joint clienteling solution delivers an all-in-one platform on mobile point-of-sale (mPOS), not only providing retailers with a flexible means of completing transactions in-store, but technology that enables them to learn more about their customers, understand their needs and provide an unrivaled customer experience on the spot.

Technology investment is a significant step towards advancing operations to meet consumer demands. However, if not executed wisely it can have minimal or even a negative impact on the business. Retailers must evaluate the return on investment (ROI) when deploying these advanced technologies. Those who deploy Teamwork Commerce and Endear’s platform typically begin to experience a significant increase in their revenue within the first week of deployment, with a 94x average return on the cost of the subscription.

Boosting Customer Loyalty

Customer loyalty plays an integral role in ensuring retailers’ sustainable success in the market as loyal consumers return to shops and spread word-of-the-mouth. To retain customers and win their loyalty, retailers must deliver a complete experience that builds strong relationships while making consumers feel valued. Building loyal customer relationships is not an overnight task. It takes time, and cannot be accomplished after one in-store visit. To keep customers coming back, retailers must find ways to incentivize their return. This could be through personalized offers, newly announced product drops, or issuing reminders about when products they love are back in stock or discounted. This helps to make consumers feel valued. It also enables retailers to stand out from the competition and generate long-term business success.

Teamwork Commerce’s clienteling solution helps retailers grow customer relationships through email, text and WhatsApp. Leveraging integrated personalization and segmentation tools, the solution allows sales associates to send bulk messages whilst still tailoring messages to individuals. This can help retailers stay connected with consumers and increase their order frequency. For example, retailers who use the solution have noticed an increase of 111% in order frequency.

Creating Relationships That Last

Personalization has become fundamental to today’s retail environment. To rise above the competition retailers need to choose their technological deployment wisely. Clienteling can be an important tool in helping to drive growth in customer loyalty for retailers, but only when it is executed correctly. Retailers must ensure that their in-store and online retail solutions are well integrated, and communicate seamlessly with each other in real time. Having a single source of information can help retailers deliver personalized experiences effortlessly.

Need help in choosing the right retail solution for your business? Schedule a meeting today with one of our retail experts to prepare your business for a revolutionizing 2023!

By Amber Hovious (pictured).

VP of Marketing & Partnerships, Teamwork Commerce

Originally posted on: IT in the Supply Chain

According to a 2021 survey, 40% of supply chain professionals claimed that they had already integrated cloud computing and storage technologies into their company operations. Retail giants have already started to invest in technology to automate their functions across order fulfillment, warehouse distribution, pickup, and delivery. In 2023, this is only likely to grow to cater to the omnichannel demands of consumers.

In the early stages of the new year, retailers’ budgets remain constrained, putting an added emphasis on the requirement to produce effective and efficient procedures to decrease costs. While sales are made on the shop floor, back-end operations are vital in not only supporting these transactions but also executing them in an optimal manner that boosts operating speed and optimizes income.

Order management technology can empower retailers to support sales from any channel with a variety of deep functionality designs to create a seamless purchase workflow. With the appropriate technology, order management can be directly connected to most eCommerce platforms, providing an automated solution to generate shipments. Orders can be placed from multiple locations and fulfilled anywhere. This plays an integral role in both delivering a high-quality customer experience and driving efficient and cost-effective operational processes that are crucial in the current economic climate. But how does this look in action?

Driving Efficient Order Fulfilment 

State-of-the-art order management systems (OMS) leverage real-time data and automation to fill orders from the most convenient locations and deliver items quickly at the benefit of the customer, who now has numerous options to choose from across online and offline sales channels. Consumers expect a frictionless experience that allows them to place and receive orders, and execute returns if needed. They want this to happen as quickly as possible, leveraging online platforms, physical stores, or a blend of both. Customer satisfaction, revenues, and brand reputation all hinge on order management.

Retailers must prioritize the process of order capture, order configuration, inventory visibility, planned fulfillment, and shipment and return solutions. The goal is for customers to receive orders, on time and in full, at the lowest possible cost. As much as retailers should focus on delivering the orders, they must not overlook their returns management – as a returns experience can play a significant role in building consumer loyalty.

Streamlining Returns With Order Management

The returns dilemma continues to create challenges for retailers and 2023 will be no different. The right order management solution can create an effective reverse supply chain and streamline the entire process. 2021 saw $761 billion in sold merchandise returned to retailers over the course of the year, accounting for 16.6% of total US retail sales. Retailers who use a streamlined, end-to-end returns management system can improve customer loyalty while also distinguishing themselves in terms of profit and consumer experience.

With the appropriate OMS, retailers can swiftly receive returned products and restock them for resale. It also assists with recycling, repackaging, and restocking to decrease inventory waste and lessen the financial and environmental impacts of returns. When a return procedure includes a clear set of restocking guidelines, returns may be executed seamlessly and products can retain their value while staying out of landfill.

Ensuring a High-Quality Customer Experience

With a variety of fulfillment options available to consumers, including online delivery, buy-online-pickup-instore (BOPIS), and buy-online-return-instore (BORIS), retailers must provide a seamless omnichannel experience that fosters loyalty and consistently delivers high-quality service.

In today’s competitive retail environment, this is critical for remaining ahead of the curve. A digital, end-to-end OMS is a simple, practical, and successful method to boost efficiency and improve the overall customer experience. Powered with cutting-edge technology, OMS can provide retailers with a consolidated picture of inventory counts and a summary of total customer contacts by grouping orders using a unified commerce system. It can also assist in keeping track of where products are and what tasks staff have completed in relation to an order.

Retailers may avoid out-of-stock situations by having an inventory count that is synchronized to all departments – from the front end to the back end. Customers can choose the most convenient method of receiving an item using omnichannel fulfillment options. Order management is in command of everything from receiving the order, throughout delivery, and after-delivery customer care.

In 2023, retailers must be able to deliver the sought-after convenience across all sales channels. Those that do not deploy appropriate order management technology can quickly become overwhelmed with orders or fail to fulfill them appropriately. Retailers who invest in order fulfillment technology must ensure that their solution is well integrated with other retail technologies and allows a seamless flow of communication in real-time across the retail technology stack. This not only boosts accuracy but also helps retailers stay up-to-date and improve their decision-making.

The retail landscape has been changing drastically over the last few years. In these times of uncertainty, it is no wonder that brands and retailers are feeling uneasy about what lies ahead. 

Previously, in 2020 and 2021, the whole world faced challenging conditions with the initial consequences of Covid-19. In 2022, after a brief recovery period, an unexpected wave of macroeconomic and geopolitical issues took place.

Because of these events, consumer shopping habits have drastically changed. Now, they are looking for new and exciting shopping experiences, getting creative with their spending, and exploring new ways to purchase products. Such as like live selling, buy online, pick up in-store (BOPIS), and many others.

Consumer Trends in Fashion Retail

While we head into the first months of 2023, it is important to stay on top of these shifts. That way retail businesses can adapt their business model and protect customer loyalty. In this blog, we share three key consumer shifts for 2023 that you should be aware of, according to the BoF State of Fashion Report.

Two-track Spending 

In 2023, while experiencing the highest inflation in a generation and rising geopolitical tensions, it is expected that lower-income households will struggle with covering everyday expenses. Also, they will be likely to cut back on discretionary spending, like fashion and beauty purchases.

On the other hand, it is a different story for higher-income households. In this situation, they might not have to worry about the economic turbulence as much, and their shopping habits will remain relatively unaffected, at least for now.

As a result of the above, we are at the beginning of a two-track spending reality. At this point, the affluent will still have money to spend, but the lower-income demographic may struggle and will have to change their spending habits. But, how to adapt to this consumer shift in your retail business? Here are a few ways:

• Have discounts and loyalty programs. Implementing these strategies for those on tighter budgets, especially if this is your target market.
• Study other income streams. As low-income consumers look for value for money, they may turn to resale, repair, rental, or refill products and platforms.
•  Consider “premiumization”. Luxury brands have been opting for this alternative, as it helps to stand out among their competitors and make more money.
•  Encourage a higher ticket revenue. For affluent customers, making premium kits can help you obtain bigger tickets.

Gender-fluid fashion

According to research conducted by the fintech company Klarna:

• Around 50 percent of Gen-Z globally have purchased fashion outside of their gender identity.
• Around 70 percent of consumers say they are interested in buying gender-fluid fashion in the future, with younger generations leading the way.

As can be seen in these numbers, fashion that is not limited by traditional gender stereotypes is not just a trend, but something that people identify with. This way individuals will dress in a manner that aligns with their personal identity and individual expression. According to this consumer shift, shoppers will look for less menswear and womenswear, and more gender neutral fashion.

Until now, embracing gender-fluid fashion can be a challenge, especially when it comes to considering cultural differences in markets. However, it is important for helping foster customer loyalty, increase loyalty and awareness, maintain competitiveness, and have a gender inclusivity culture.

Here are some ways to adapt to this consumer shift in your retail business:

• Know your audience. To decide whether your brand should embrace this trend, consider your customers’ demographics, such as age and culture. If you are ready to embrace this trend, learn about Gender-Fluid and understand the perspectives of the customers you are trying to reach.
• Diversify your product line: Offer a wide range of clothing and accessories that can be worn by people of all genders, such as unisex items, androgynous clothing, and accessories.
• Evaluate and adjust your processes: Introducing gender fluidity requires rethinking not only your product design, marketing, shopping experience, and social media communication, but also your business processes and even your supply chain.

Timothée Chalamet, 00:01:25, at Venice Film Festival 2022, wearing Gender-Fluid Fashion.

Formalwear Reinvented

The wardrobe of 2023 could be drastically different from the wardrobe of any of the recent years. Now, the traditional system of clothing, segmented by leisure activities, business events, and family celebrations, no longer applies.

While the office dress code is more relaxing today, and hoodies, jeans, and sneakers became acceptable in many offices around the world, customers dress up for the most formal occasions. Particularly, they are looking for statement-making outfits and unique items that will stand out; doing versatility and comfort much less of a factor for decision-making.

As a result, rental platforms and services will present a unique opportunity for occasion wear because customers will prefer renting their special gowns that won’t be used more than a few times.

This reinvention of dress outfits fits into the changing retail landscape, in which consumers will be more particular about the brands they support, trusting only those that offer innovative solutions to their clothing problems.

Incorporating this trend in your retail business might be very challenging, from product sourcing and marketing strategies to pricing adjustments. Here are some ways to take advantage of this trend:

• Understand your audience. Gather information on your consumer’s habits, routines, and requirements for their everyday life.
• Rethink your clothing proposition. The markets are two: comfortable, versatile, elegant but casual everyday apparel, and statement-making special occasion outfits.
• Explore the possibilities of renting. The rental market is projected to be worth $2.1 billion by 2025, in part by the demand for elegant outfits, according to Technavio. It can be interesting to explore this market for brands that want to focus on special occasions.

On special occasions, people will tend to opt for eye-catching outfits to stand out when they choose to dress up.

The 3 trends that will shape 2023’s retail fashion 

As we approach the first quarter of 2023, it’s important for fashion executives in the retail industry to be aware of the consumer behavior shifts for this year, the potential global economic crisis, and how it may impact their customers.

In particular, Two-track spending, gender-fluid fashion, and formal wear reinvented are key consumer new behaviors that should be considered when planning strategies for these upcoming months.

Unquestionably, the retail-fashion industry needs to stay ahead of the curve and adapt to remain competitive and consumer-focused in 2023. By adapting to these trends, retailers can achieve success, maintain customer loyalty, and avoid a decrease in their earnings despite the economic difficulties forecasted for this year.

 What other trends do you think will impact the fashion industry in 2023?