Fine-Tuning Retail Digital Transformation: Starting From the Inside Out

Digital transformation has become an inescapable mandate across all industries, especially retail. Providing consumers with an excellent online shopping experience and going beyond their expectations are critical measures of a retailer’s success. Customers’ demands are constantly changing, and retailers’ digital transformation efforts must reflect this as always-on, not a one-and-done process.

Nonetheless, we're still seeing particular areas where retailer C-suites can better adjust their digital transformation efforts. To stay ahead of the curve (and shoppers’ expectations), retailers need to invest and modify their strategies from within, starting with their internal digital transformation efforts. C-suites need to ensure their internal teams are aligned and communicating efficiently to see an effective external change with their customers.

CDOs Spearheading Digital Transformation

Creating the perfect customer shopping journey heavily depends on how quickly data is disseminated internally — a job specifically for a chief data officer (CDO). We’re seeing many enterprises adopt CDOs in their C-suites. The savviest ones will spearhead actions based on data that affects revenue — considering the financial impact of a digital issue — instead of bottlenecking themselves with a surplus of data that they're struggling to make sense of.

For example, if a retailer is experiencing two distinct issues with one error affecting 2 million customers while the other only is affecting 500 customers yet actively costing a brand more money, the latter should be prioritized. This is where a CDO can help expedite data analysis to prioritize projects for all teams involved to remedy the concern.

Industry data shows companies with a CDO are twice as likely to have a clear digital strategy, proving the important role they play. CDOs are tasked with delivering real-time data, breaking down silos to create data fluency between business and IT teams, and quantifying and prioritizing opportunities. When this is all done successfully, it serves as a basis for better digital strategies and initiatives.

While it’s beneficial to have a CDO, a few retailers haven't made the transition and rely on their CMOs, CIOs, CTOs and the like to work in tandem of each other. While these partnerships require more collaboration, it’s not impossible. Each player must communicate their respective priorities to align, avoiding silos that could cause further bottlenecks.

Data is Key: Excelling in Customer’s Online Shopping Journey

As customer data is analyzed, it becomes an essential asset for internal teams to identify, pinpoint and prioritize any issues customers might be experiencing — e.g., slow load times, checkout errors or cart abandonment.

For example, industry data states 49 percent of consumers would abandon their cart if they experienced an error. If not fixed quickly, retailers can lose out on revenue. In fact, one in five (23 percent) customers would lose trust in the retailer altogether and shop elsewhere. Quantified data can easily show internal teams that this is a major issue hurting their revenue, and it's up to them to use this information to prioritize their efforts.

But this data, first, has to be shared and communicated among internal teams in order for them to resolve efficiently and continuously adjust their digital initiatives to meet consumers' changing expectations.

Internal Alignment and Cohesive Communication

Yes, data is a powerful tool in aiding a brand’s digital transformation efforts and quest to provide customers with seamless online experiences. However, it's a complete waste if internal teams aren't entirely aligned and cannot communicate efficiently with each other. All teams (marketing, IT, sales, operations, etc.) across the organization must be on the same page if they're to contribute to the company's bottom line.

Internal team alignment cannot be left out of the digital transformation equation. Otherwise, enterprises will find themselves in a situation like Yankee Candle experienced this past holiday season. The candle retailer received backlash from customers after their online orders were delayed and had trouble contacting customer service for answers. If teams cannot communicate with one another in a timely manner to solve issues and assist customers on their shopping journeys from start to finish, then it only hurts their brand reputation and customer loyalty. It's also a sign that a brand’s digital transformation strategies need a more strategic approach.

Companies need to remember that digital transformation starts from within. Once a brand is able to align its C-suite and internal teams to fully optimize their digital strategies, it’s reflected externally with satisfied customers and increased revenue.

Mario Ciabarra is founder and CEO of Quantum Metric, a digital intelligence platform that enables modern enterprises to quickly deliver exceptional online experiences.