Technology now a must to win at retail

Retailers have their work cut out for them to provide seamless customer experiences. The festive season, for example, is one the most challenging periods for online retailers from a logistical and customer experience point of view, says Jennifer Arnold, VP of Marketing, Asia Pacific Japan & Greater China, SAP Customer Experience (CX).

"Following the massive Singles’ Day, Black Friday and Cyber Monday period*, retailers have barely a month to ensure that they have enough stock for consumers to make purchases in time for Christmas. This is crucial because stock availability and quick delivery times are key factors in consumers’ completion of their online purchases.

"Our 2018 SAP Consumer Propensity Report revealed that more than one-third of Asia Pacific (APAC) shoppers abandon their online carts due to out-of-stock items, while 28% do so because of longer-than-expected delivery times."

Technology-wise, retailers have a veritable arsenal of technology they can use to help shoppers convert. Arnold suggested that retailers use data analytics to predict and prepare for expected demand for particular products and delivery requirements and also tighten the demand and supply chains. On the demand side, they could look at commerce sites, retail systems, and marketing tools, while on the supply side logistics, warehousing, and order management could all be optimised. The idea is to obtain visibility of product stock levels in the warehouse and store locations, delivery schedules, third-party logistics providers, and so on, in order to get a product into the shopper’s hands at the time promised, she said.

"Online retailers may also consider offering alternative delivery methods to home delivery during the holiday period that may better suit shoppers’ needs, such as secure lockers and click-and-collect options," she suggested.

Arnold also noted that consumers are shopping for others and not just for themselves at Christmas, which is typically not the case for the rest of the year. "The use of advanced analytics during this period plays a key role in anticipating what shoppers may want to buy for themselves versus what they want to gift to family and friends, allowing retailers to provide a more personalised experience with relevant recommendations, promotions and shipping options," she said.

"With 40% of Asia Pacific shoppers expressing a desire for a physical store to test products before purchasing according to our research report, online retailers can look to provide this tactile experience by setting up their own short-term pop-up stores or renting temporary space in an existing outlet.

"Alternatively, retailers can look to virtual or augmented reality technologies to help consumers picture how products will look and work in real life, as the report reveals that 39% of consumers would like this capability," she suggested.

According to the SAP Consumer Propensity Report, Singapore customers want basic services for ease-of-use, such as having an easy means of exchanging products and a 24x7 enquiry service. The ability to "touch and feel products, easily see all the options, and experience how the products will work in their life" is important, Arnold added.

Going offline can include a bricks-and-mortar store, which could be a short-term pop-up or a dedicated space in another retail or public space. "And to attract customers in, the retailers may look to create a memorable, interactive experience for the customers in their locations, such as free yoga classes to sell athletics gear, or a reading by an author to sell books.  If a physical location isn’t possible for a retailer, they may be interested to know that the SAP research also found that consumers are interested in having retailers provide virtual or augmented reality technologies to help them picture how products will look like in real life," Arnold said.

Bugis+ mall has lockers for e-commerce self-collection and a testing station for electronics, so that faulty devices can be returned immediately.

Bugis+ mall has lockers for e-commerce self-collection and a fitting room, so that clothing which does not fit can be returned immediately.

The NomadX store in Singapore is designed to be a first O2O presence for e-tailers. It includes a Taobao home showcase. Taobao is owned by the Alibaba Group.

Explore:

Browse the full list of 2018 round-ups and 2019 predictions in TechTrade Asia

Read the TechTrade Asia blog post on the 2018 results of Alibaba's 11.11 Global Shopping Festival

Read the WorkSmart Asia blog post on Amazon's bestsellers for Christmas 2018 in Singapore

*Singles' Day was on November 11. Black Friday followed on 23 November, with Cyber Monday on the 26th of the same month.