Unpredictability is unavoidable and can derail even the best-made plans, as demonstrated in early 2020!
Those who are proactive and take steps toward building agility and flexibility in their marketing and business operations will be the ones that thrive in this unpredictable world of retail.
We think it’s time to stop talking about consumer trends and start focusing on consumer priorities. Supply chain issues will continue to disrupt retailers and annoy customers. Costs are rapidly increasing with inflation, which is making huge dents in the profits of many retailers, however, we live in a world of unpredictability and when we have uncertainty we have a catalyst for change. And, a mandate for innovation.
Shifts in consumer spending behaviour?
If Amazon Prime Day is anything to go by – everything is okay! Amazon sales jumped by over 8% from a year ago. The company reported sales from the two-day event reached $12B with over 300 million items being purchased. While that doesn’t tell us if the sales were profitable or not, it does tell us people are still spending, which is a positive.
However, at a time when consumers are demanding greater flexibility and responsiveness as many are feeling the financial pinch, it’s imperative to manage your customer expectations, if you can’t meet ridiculous delivery expectations then think about how else you can differentiate yourself from competitors and offer convenience in other ways, such as a super simple checkout process or hyper-relevant product recommendations when products are out of stock (especially important if you’re experiencing supply chain issues).
Need to adapt to budget reductions and increase efficiency?
It’s simple, investing in technology can accelerate growth and increase performance. For example, UK DIY company Screwfix, transitioned to an omnichannel business model across digital, stores, and catalogue by establishing next-day delivery and click-and-collect options. Learning from best-in-class players, Screwfix quickly became the fastest-growing company in the United Kingdom’s construction and retail market.
“Retailers that commit to a radical transformation of their tech function can both spark growth and increase performance.” Mckinsey
Want to learn more about how to adapt to changes in consumer spending behaviour, increase your business efficiencies using technology and manage stakeholders internally over the next few months?
Sign up for our upcoming webinar with Odicci, Bidnamic and Acceleration Partners.