4 Challenges Facing Retailers Today and How to Overcome Them

Constant disruption has become the norm for the retail sector, with changing technologies, an increasingly saturated market, and a global pandemic creating continuous chaos in recent years. If you’re a retailer hoping to remain relevant, scale, and increase your ROI, it’s essential to stay ahead of the curve and be prepared to face challenges head–on, before they poke permanent holes in your business. To help you stay afloat and thrive in today’s turbulent market, here are four common challenges facing retailers — and what you can do to overcome them.

Challenge #1: Ever-Changing Consumer Habits

Solution: Creating a Seamless Omnichannel Experience

Consumer behavior is constantly evolving. The pandemic showed shoppers they could get almost anything online, while creative solutions like BIPOS (buy online, pick up in-store) proved the popularity of hybrid options. Now that consumers have become accustomed to shopping across multiple channels, retailers must be ready to meet customers where they are and adapt to their evolving needs. This requires the creation of a solid omnichannel strategy, one that provides customers with a consistent experience across all touchpoints.

How do you do this? First and foremost, you need to make sure that your customers can start a shopping interaction on one device and resume it seamlessly on another. When a shopper moves from their smartphone to their laptop, for example, they want to see the same products at the same prices. They want their shopping cart to remain intact, and they definitely don’t want to reenter information that they already provided on the previous device. They also don’t want to be thrown off by a drastically different look and feel — i.e. the branding must be consistent. Essentially, they want to shop from smartphone to laptop to tablet to store without feeling any kind of disconnect.

59 percent of shoppers say they would choose a competitor that offers a seamless shopping experience if given the choice. –Rev Chat 

Starbucks is a brand that has been doing this brilliantly for quite some time now with its rewards program. Whether members decide to buy their java by app, online, or in-store, they’re able to access their rewards points and have updates to their accounts made in real-time across all channels. At the same time, the app streamlines the buying experience by connecting mobile and in-store experiences, allowing customers to place their orders ahead of time so they can bypass the line in the store. In addition to being addicted to pumpkin spice lattes and caramel macchiatos, customers keep coming back because they love getting what they want, when they want it, where they want it, and how they want it. 

Challenge #2: Standing Out in an Oversaturated Market

Solution: Improved Customer Experience (CX) Through Personalization​

Shoppers want to feel special — plain and simple. They want to know that the brands they love value them as customers and will go above and beyond to make sure they’re happy. One of the best ways for retailers to make this clear to their customers is to invest in CX. In fact, a whopping 86 percent of shoppers say they’re willing to pay more for a great customer experience, which means they won’t hesitate to look elsewhere if you’re not giving them exactly what they need from the get-go.
 
Shoppers want to feel special — plain and simple. They want to know that the brands they love value them as customers and will go above and beyond to make sure they’re happy. One of the best ways for retailers to make this clear to their customers is to invest in CX. In fact, a whopping 86 percent of shoppers say they’re willing to pay more for a great customer experience, which means they won’t hesitate to look elsewhere if you’re not giving them exactly what they need from the get-go.

58 percent of customers say they will abandon a business due to poor customer experience. 

–Martechcube

One of the best ways to create these hyper-personalized experiences at scale is to leverage dynamic creatives and data-driven technologies such as dynamic creative optimization (DCO). DCO is a type of programmatic advertising technology that gives marketers the ability to optimize dynamic creatives in real time using data that’s collected when an ad is being served. Ads are updated automatically based on a broad range of data triggers, such as location, weather, gender, device, buying history, and where the user is in the sales funnel.
 
Remember, there are 2.1 million online businesses in the U.S. alone — and more than 9 million across the globe. No matter how strong your products or services may be, you‘ll be usurped by the competition if you’re not doing everything you can to stand out from the crowd. Of all the challenges facing retailers today, this one will always loom large. 

Challenge #3: Managing Data (& Making the Most of It)

Solution: Automating Data Collection

Of course, dynamic creatives and automated marketing tech like DCO are only as good as the data driving them. Poor personalization strategies can be just damaging as having none at all — 77 percent of shoppers say receiving push notifications or text messages for promotions they’re not interested in is extremely irritating. To deliver an experience that makes each customer feel recognized as an individual, retailers must be able to convert the data they collect into smart, actionable insights that can be leveraged to drive personalization. And this requires smart data management.

75 percent of American consumers say they’re more likely to be loyal to brands that understand and interact with them on a personal level. –Acquia

But the days of manual data gathering and analysis are long gone. Today, the only way to efficiently and effectively manage vast amounts of data is to lean on automation solutions like data management programs (DMPs). Initially, DMPs were used mostly for media buying, however in recent years, more and more marketing leaders have been leveraging them to expand campaign reach by creating hyper-targeted, data-driven personalized strategies. And they can be easily integrated with DCO platforms.
 
Automated retail analytics platforms such as Alloy and DataWeave can also be helpful for generating actionable insights. In addition to customer data, they can analyze info such as supply chain movement, inventory levels, consumer demand, and more. 
 
But best way to ensure you’re using the tools that are the most effective for your business is to partner with experienced digital solutions provider like Theorem. Our automation solutions have helped some of the world’s biggest businesses collect, manage, and analyze their data, including U.S. media titan Advance Local.

Challenge #4: Customer Retention

Solution: Building a Loyalty Program

Loyalty programs are powerful tools when it comes to customer retention. In addition to making faithful shoppers happy by offering discounts, deals, and other feel-good perks, they maximize customer lifetime value by incentivizing shoppers to spend more money and buy more often. They’re also relatively inexpensive to implement, and when done right, can help boost revenue by creating a better overall customer experience.

More than 80 percent of consumers say belonging to a loyalty program influences their decision to buy again from a brand. -Yotpo 

The key to creating a successful loyalty program is making sure that the perks you provide offer value to your customers. And because value can mean different things to different audiences, it’s critical to let first-party data inform your strategy.

 
 This means that your loyalty program’s incentives — whether they’re points, discounts, freebies, or other perks — must closely align with your audience segments’ preferences. Once again, personalization pays off — statistics show that customers are eight times more likely to be satisfied with a loyalty program that is closely tailored to their interests. So dig into that data to reward your customers with incentives that will truly make them want to come back for more.
 
It’s also essential to make sure your loyalty program is easy to use. Because while your customers want to be rewarded for remaining faithful to your brand, they don’t want to do any extra work to reap those benefits. If you set up a points-based rewards system, for example, make sure it’s straightforward and easy to understand. And avoid the common pitfall of requiring shoppers to scan a physical loyalty card — let them redeem their perks via a phone number or email address.

You may also like...

Subscribe to Our Blog

Subscribe to receive an email when we publish new content!

    Ready To Empower Your Business?

    We can help you future-ready your business with customized, innovative solutions designed to foster sustainable growth.

    Let’s Talk

        Meto

        Meto

        Meto is a tech-based nonprofit intent on making access to quality higher education a reality for all students. We have a special focus on creating scholarships for low-income students.


        In 2018, Meto was founded to connect African students with university opportunities. Along the way, we have learned that all students can benefit from our innovative model, wherein universities make the first move and invite good-fit students to apply. So, in 2023, we opened our platform to students across the globe.

        website: https://meto-intl.org/

                  Nikhil Badlani Foundation

                  The Mission of the Nikhil Badlani Foundation (the “Foundation”) is to enhance the lives of underserved children in West Orange, NJ and neighboring communities through music lessons, scholarships, and traffic safety education for all.

                  Since the Foundation was established in 2011, Theorem has consistently been an annual sponsor of and team participant in the STOP for Nikhil 5K Run/3K Walk. This event intends to raise traffic safety awareness and to serve as a way to remembervbgfc ≈ and honor those who have been killed or seriously injured in traffic accidents. We recognize the importance of raising awareness and road safety amongst teenagers and parents alike, especially in the local communities of our Chatham, New Jersey office. Learn more about the Nikhil Badlani Foundation at nikhilbadlanifoundation.org

                  Diversity and Inclusion

                  Theorem actively aids in the ongoing fight against systemic racism and discrimination, realizing the importance of ongoing discussions surrounding diversity and inclusion.

                  By contributing to organizations such as Black Girls Code and the Anti-Racism fund, we aim to be a fundamental supporter of diversity in the workplace and beyond. These organizations specifically speak to Theorem’s role as a leading voice in the technology innovation space and we avidly support their missions. The vision of Black Girls Code is to empower girls of color, ages 7-17 to become innovators in STEM fields and encourages them to be the builders of their own futures. The Anti-Racism Fund serves as a response to the inequities experienced by the African-American community. It provides monetary support to a dynamic portfolio of curated organizations as a way to inject and enable social change.

                  Feeding America

                  Feeding America is the largest charity working to end hunger in the United States. By partnering with local food banks, food pantries and other community food programs, Feeding America looks to advance change across the country and ensure equitable access to nutritious food.

                  As a long-standing contributor and sponsor of Feeding America, we deeply believe in their vision of an America without hunger. The need for and importance of organizations like Feeding America has has become more and more prevalent as communities face more hardships as a result of the pandemic and the current economy. Theorem is dedicated to its continued contributions to Feeding America to do our part to empower and strengthen our communities. Learn more about Feeding America at www.feedingamerica.org

                  Grameen America

                  Grameen America is dedicated to helping entrepreneurial women who live in poverty build businesses to enable financial stability mobility.

                  Since their founding in the United States in 2008, Theorem has supported Grameen America’s mission, which seeks to build upon the legacy of Presidential Medal of Freedom, Congressional Gold Medal and Nobel Peace Prize winner Muhammad Yunus. Through financial contributions and event participation, Theorem has contributed to Grameen America’s cause. As an immigrant entrepreneur himself, our CEO Jay Kulkarni is especially eager to support the organization’s mission of aiding underserved communities. Learn more about Grameen America at www.grameenamerica.org

                  Vision Spring

                  VisionSpring is making the wonder of clear vision possible for all by helping provide affordable and quality eyeglasses to those in need. For many, lack of access to affordable eyeglasses leads to loss of employment or less educational opportunities.

                  VisionSpring partners with organizations who join them in their mission of supporting livelihood initiatives, enhancing potential for all. Learn more about Vision Spring at https://visionspring.org Theorem has consistently partnered with VisionSpring to organize free events, such as eye check-ups, across multiple villages in the Mysuru, India region, impacting over 3,000 rural residents. We stand with VisionSpring in their mission to increase accessibility to quality eyewear and eye care.

                  Covenant House

                  Covenant House provides housing and supportive services to youth facing homelessness, helping young people transform their lives.

                  For more than 5+ years, Theorem has supported Covenant House with corporate sponsorships, leading career-building workshops at their Newark, NJ shelter facility and participation in the organization’s fund raising Sleep Outs. Covenant House utilizes these Sleep Outs to raise funds and help shine a light on the injustice of youth homelessness, inspiring communities to step up and protect the vulnerable. We are proud to support Covenant House’s programs, which are designed to empower young people to overcome and rise above adversity, today and in the future. Learn more about Covenant House at www.covenanthouse.org

                  Contract Type

                  |

                  Location

                  Job Title

                  Contract Type

                  |

                  Location

                  Job Title

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

                  Apply Now