If 2020 taught us anything, it was that no business is resilient to everything. But those that had laid their digital tracks early were better positioned to recover, and in some cases, even speed ahead. In fact, one retail expert said that we had “witnessed a 10-year evolutionary leap toward digital” in retailing. That’s quite a leap. And as a retail industry, we need to approach the new world we areRead more
If 2020 taught us anything, it was that no business is resilient to everything. But those that had laid their digital tracks early were better positioned to recover, and in some cases, even speed ahead. In fact, one retail expert said that we had “witnessed a 10-year evolutionary leap toward digital” in retailing. That’s quite a leap. And as a retail industry, we need to approach the new world we are living in with a digital-first mindset. At Microsoft we call this enabling intelligent retail—using digital solutions to help better know your customers, to empower your employees in new ways, deliver an agile and resilient supply chain to meet your customers where they are, and ultimately to help you reimagine the future of your retail business. Aligned to these areas of focus, here are four trends Covid-19 accelerated in 2020, that we expect to see stick in 2021. As I write this,40 petabytes of retail data will be generated. For perspective, if you recorded a one-petabyte song, you’d need 2,000 years to listen to it. That data has enormous value, but because it is 90 percent unstructured it’s challenging to separate signal from noise. Today we’re helping retailers unlock the power of that data. That can range from predictive analytics that makes intelligent recommendations to customers, to connecting with shoppers within a store or web site, to attacking fraud and shrinkage. We believe your data is one of your most valuable assets—like your inventory and your stores. And if understood and thought of strategically your data can open entirely new businesses, revenue streams, and consumer differentiation. For example, DICK’S Sporting Goods recently partnered with Microsoft PromoteIQ so brands could increase visibility on DICK’S website and engage with shoppers in a more meaningful and personalized way. In the first full month live, they exceeded their previous ad provider revenue by over 30 percent year-over-year. Strong partnerships can put wind in the sails of any retailer. One study I’ve seen showed that such partnerships can add 10 to 15 percent to topline revenue performance by helping retailers meet customers where they are, regardless of retail channel. Partnerships also help retailers add value to existing customer relationships and can give retailers access to new skillsets. It’s been a true privilege for us to partner with many of you on your digital journeys, from FedEx who we’re partnering with to transform the end-to-end commerce experience, to retailers like Musgrave and Woolworths Australia who introduced a new scan-and-go concept to meet consumer demand for contactless experiences when stores reopened—it’s been an incredible journey.
