How A Robust Analytics Strategy Can Make Your Business More Agile in Uncertain Times
In a recent interview with Clearpay, UK consumer insights expert Martin Newman advised on how retailers can become more agile in uncertain times.
Planning for the unexpected, he advised, is vital in any given year and that the 2020 pandemic has highlighted the need for a more robust analytics strategy.
“Retailer models were not fit to adapt and pivot quickly to the implications of having to close stores, adjust supply chains, etc,” Martin said in relation to the impact COVID-19 has had on the retail industry. “I hope retailers will think about how to plan for a “what if” in the future and be prepared for different scenarios and the impact on various parts of their business. We all need a new disaster recovery plan”.
So what do retailers need to consider going forward? The pandemic has made some pretty significant changes to the way we shop, but the most significant is the move to online. In fact, around 65% of UK consumers said they have bought more online since the first lockdown.
“E-comm and digital will never be the same,” says Martin. “In the US, 20% of total retail is now online when prior to pandemic it was around 13-14%. This obviously has implications for marketing, technology, payment solutions, the infrastructure that help maximise demand. The growth of digital is not going away and e-commerce sales will only grow, not decline”.
This switch to online means that retailers need to put more energy into e-commerce, bringing the personal touch of the in-store experience online. Martin says that this means going beyond just “business” and helping foster connections and community through social channels and first-class customer service.
When attracting international customers, retailers also need to ensure they understand cultural nuances and market breadth. This includes offering localised languages, currencies and payment systems for international shoppers.
Implementing BNPL options such as Clearpay, for example, can make this easier with its cross-border commerce function. Retailers who already offer Clearpay’s Buy Now Pay Later payment option at checkout can now offer their digital storefronts to shoppers in Australia, Canada and New Zealand. Next year, the U.S. will be added allowing merchants to sell to customers across America.
A change in consumer attitudes should also be taken into account. “Consumers are currently spending less and saving more due to lack of confidence in what the future holds, loss of jobs, and uncertainty around the economy. Retailers will have to work harder to earn market share and be top of their game”.
This includes a shift to a more sustainable way of shopping and a more conscious attitude from retailers. “Stores should offer a mix of new and sustainable merchandise, pre-loved/second hand, upcycled and recycled products,” advises Martin. “Retailers will need to cover these bases, and pandemic will likely accelerate that shift to more sustainable shopping and merchandising. People have had more time to be reflective about their purchasing decisions”.
This is particularly important when catering your offering to the younger Gen Z (the generation born between 1996 and 2010). “Gen Z expects brands to enable them to take action on causes they care about such as sustainable clothing, thrifting, and buying second hand,” says Martin. “They also want to see real people in advertisements and brand marketing and see themselves reflected”.
Buy Online Pick Up in Store, or BOPIS as it’s more commonly referred to in retail, is also on the increase and is a key area for retailers to consider investing in. Recent research conducted by e-commerce platform Kibo shows that consumers are now opting for BOPIS at more than four times greater volume than before the pandemic. Purchases made this way increased by 554% in May 2020 accounting for 47.5% of online orders during that month.
“There is comfort in customers knowing that if someone doesn’t quite like what they have ordered, they can return it. With that said, I predict that the Click and Collect model will grow,” says Martin.
In summary, customer spending habits and attitudes have changed massively in 2020, and Covid-19 continues to create a number of unprecedented changes. Creating a robust and agile analytics strategy should therefore be top priority for all retailers in 2021.
Find out how Clearpay can help drive your business forward in 2020 by scheduling a meeting with one of our Retailer Team Members today at [email protected].
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