INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
Staying Focused on the Supply Chain As a Critical Asset
Summary
An Industry Fundamentally Impacted
After experiencing the vast potential of online purchasing, customers are rethinking the purpose of the in-store channel. They are reevaluating trade-offs between convenience, speed, community, and experience when purchasing products based on risk sensitivity and situational needs. Customers want choices, but they also expect a frictionless experience as they float back and forth between digital and physical channels.
Across all sizes and categories, retail executives are asking critical questions that can impact the future of their operations long after the pandemic, such as:
• When will customers come back to their stores?
• How will the role of a retail associate change?
• What does a more integrated digital and physical experience look like?
The pandemic has, without question, removed the barriers between physical and digital customer experiences, especially as shoppers expand the number of channels they use to interact with retailers. And even as shoppers continue to increase the number of channels they use to engage with retailers, there is only one channel that retailers need to be concerned about: the customer channel.
The concept of the customer channel is particularly important now that nearly 50% of customers use a mix of physical and digital experiences to do their shopping. However, this intensifying dynamic requires much more than cross-channel and omnichannel strategies. Customers expect retailers to meet them everywhere they are at any time with a smooth, nonredundant, personalized, and productive experience.
scroll
NEXT
PREVIOUS
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As aCritical Asset
Summary
HOW DO YOU EXPECT MOST OF YOUR CUSTOMERS WILL CHANGE THEIR SHOPPING BEHAVIOR IN THE FUTURE?
Q1
more >
NEXT
PREVIOUS
An Industry Fundamentally Impacted
46%
24%
20%
10%
Use a mix of in-store and online shopping methods
Increase store engage-ment and store visits
Look to engage with brands and purchase in new channels, such as social media, marketplaces, and influencer feeds
Move primarily to online and digital shopping with less in-store engagement
Balancing Personalization and Privacy
As customers blend their engagement across channels, the need for a personalized and tailored experiences grows exponentially – regardless of the product category. This trend is expected to revolve around Web sites and mobile apps, but interest in virtual and augmented reality is also growing among customers as interactions on social media increase.
WHICH SHOPPING TRENDS HAVE YOUR CUSTOMERS COME TO EXPECT FROM YOUR BUSINESS?
Q2
more >
Yes
Increased online shopping and engagement through the Web or a mobile app
31%
21%
14%
Curbside pickup and a third-party home delivery service
Mutually shared values, such as sustainability, diversity, ecological sourcing, and transparency
Recycling or re-commerce opportunities
Purchasing through social channels and third-party marketplaces
Increased online returns
13%
11%
6%
4%
Brand engagement through digital experiences
(for example, augmented reality and virtual reality)
NEXT
PREVIOUS
For retailers, these customer expectations for digital experiences open the door to more personalized engagement opportunities. For example, 32% of survey respondents ranked “empowering store associates with information to deliver a personalized experience” as their top priority. Meanwhile, participants ranked selling through social and third-party channels further down their list, even though the medium is becoming a promising area for increased activity as retailers focus on each customer as the single channel of engagement.
As a result of these trends, a tug-of-war between data privacy and the creation of tailored experiences is becoming a daily struggle for retailers. Customers are increasingly concerned about the security of their data across platforms. How much and what types of data can be collected to make customers feel secure and create that personalized experience they crave?
As promotions and content become more hyperpersonalized, tailored, and customized, customers demand better control over data privacy and security and the right to be forgotten. The brands they trust most are safeguarding customer data and privacy and creating personalized experiences based on the information given directly to the company, not gathered from third-party sites such as Google and Facebook.
more >
0%
5%
10%
15%
20%
35%
40%
45%
50%
25%
30%
Mass marketing delivered in print, catalog, and traditional channels
Personalized recommendations delivered directly to consumers through a digital platform (such as e-mail or mobile apps)
Personalized experiences for each customer based on past purchase history and/or searches and navigation through a commerce site or mobile app
Targeted marketing based on recently searched items through ads on Google, Facebook, or other social media
Empowered store associates with information to provide personalized services in the store through clienteling or other customer insights
NEXT
PREVIOUS
Balancing Personalization and Privacy
PLEASE RANK FROM 1 (HIGH PRIORITY) TO 5 (LOW PRIORITY) HOW THE SHIFT IN CUSTOMER BEHAVIOR HAS CHANGED YOUR STRATEGY TO DELIVER TARGETED MARKETING.
Q3
1
2
3
4
5
Complementing Physical and Digital Experiences with Each Other
Although digital engagement is the trend that customers expect most, retailers also find store operations valuable. Some even choose to expand their in-store assortments while others rationalize the size and location of their stores as a critical bridge to maintain frictionless engagement.
According to our findings, the top priorities for 58.5% of surveyed retailers are focused on expanding in-store services and personalization, while only 14% plan to reduce or eliminate investments in physical stores. Yet, over half acknowledged that customers increasingly prefer digital experiences.
The competing priorities between physical and digital channels indicate the fine line that most retailers walk when it comes to their store operations. On the one hand, they must use their stores as additional fulfillment options that became popular during the pandemic and an experience center where customers can engage with the brand one-on-one. But on the other hand, it is important to remember that customers aren’t looking for one type of experience – they are looking for all of them.
Our survey results highlight a future differentiator in retailers’ overall customer experience strategy – nurturing customer loyalty with personalized experiences in digital and in-store engagement. Retailers that understand the importance and relevance of this competitive advantage are the ones innovating new ways to use both channels optimally. Yet, those that also keep up with changing shopper preferences and fulfill them with process excellence across all lines of business are well-positioned for long-term success.
Unfortunately, the survey reveals that only one-third of respondents have the processes and technologies to understand customers well and execute against marketing, merchandising, and supply chain insights. And while 50% of retailers feel they know what to do, they still need the right digital tools to move away from manual processes and pivot as quickly as their customers change their behaviors and preferences.
more >
NEXT
PREVIOUS
HOW PREPARED IS YOUR ORGANIZATION TO MEET CUSTOMER NEEDS WITHIN THE NEXT 12 TO 18 MONTHS?
Q4
more >
In the process of implementing the right tools and processes to better understand customers
Not ready at all
Have processes and technologies in place to understand customers and execute on insights
Have good tools in place to understand customers better, but still rely on manual processes to execute on insights
NEXT
PREVIOUS
Complementing Physical and Digital Experiences with Each Other
0%
17%
33%
Employee health and safety should always be considered a critical part of workforce management. And as the role of store associates evolves and requires more personalized engagement with shoppers to drive sales and revenue, retailers must take care of their well-being.
However, our survey findings revealed that 65% of respondents find “maintaining associates’ and customers’ health, safety, and morale” as their most difficult challenge, especially as customer preferences shift. Store associates are no longer just stocking shelves and working as brand ambassadors. They are also expected to handle more responsibility as they support pick, pack, andship services.
PLEASE RANK FROM 1 (HIGH PRIORITY) TO 5 (LOW PRIORITY) THE MOST SIGNIFICANT CHALLENGES FACED WHEN RESPONDING TO CHANGES IN CUSTOMER PREFERENCES AND DEMAND PATTERNS.
Q5
more >
Growing Talent While Helping To Ensure Their Safety
NEXT
PREVIOUS
0%
5%
10%
15%
20%
35%
40%
45%
50%
25%
30%
Predicting demand and keeping the right quantities stocked in the right locations
Maintaining the health, safety, and morale of associates and customers
Designing localized assortments and bringing the right products to customers
Sourcing goods and operating an efficient and profitable supply chain
Adapting store operations to execute online order fulfillment and new customer engagement processes
1
2
3
4
5
Now that physical stores are part of the fulfillment function, our survey indicates that retailers are focused on five critical priorities (in order of importance):
more >
Growing Talent While Helping To Ensure Their Safety
NEXT
PREVIOUS
01
Enabling store associates to engage with customers, provide recommendations, and offer services
Designing stores as experience centers with value-added services and events that broaden the value of the shopping experience
Expanding capabilities to fulfill digital orders, such as dark stores, curbside and in-store pickup, and warehouse and backroom inventories
Integrating intelligent technologies into the store experience, including automated checkout and payment, augmented and virtual reality, mobile apps, and digital connectivity
Collaborating between brands by setting up another business’s store within a store and establishing partnerships
02
03
04
05
Changes in demand patterns and lengthy supply chain delays have significantly increased the difficulty of getting the right products to the right store at the right time. For example, rapid growth in online sales has magnified the problems of aging distribution networks, including inventory pileups, slow cycle times, and poorly located supply.
WHAT CHANGES TO YOUR SUPPLY CHAIN STRATEGY DO YOU FORESEE IN RESPONSE TO AN INCREASE IN DIGITAL SHOPPING?
Highly responsive retail supply chains are irrefutably vital to navigate today’s complexity and challenges. They are better equipped to identify issues early on and collaborate across business functions to resolve them faster and more completely than their industry peers. More importantly, they can support more frequent planning with longer time horizons by adopting predictive analytics that pinpoint what customers want well into the future under known and unknown market conditions.
The key to creating a responsive supply chain is optimizing a vast network of stores to relieve distribution strain. Retailers must move from reactionary demand planning methods to a more modern approach that leverages digital signals from customers and senses and shapes demand in a real-time manner that is more personalized and profitable. This can be achieved by aligning both merchandising, digital customer channel programs, and supply chain operations. The new normal will require more cohesive collaboration and a set of shared KPI’s across stakeholders.
According to our survey findings, some brands are already underway, actively investing in regionalizing or localizing their manufacturing base or nearshoring production to prevent future disruption.
Q6
more >
NEXT
PREVIOUS
Staying Focused on the Supply Chain As a Critical Asset
20%
27%
16%
Build micro-fulfillment sites to get closer to the customer
Increase automation in warehouses
Enhance end-to-end supply chain visibility
Boost fulfillment of digital orders from the store
37%
Summary
/contactsap
www.sap.com
< back to home
PREVIOUS
PREVIOUS
To balance all these priorities on the road to a new world of retail, brands require a platform for innovation and process automation. Speed is the key to success, and latencies or silos cannot be afforded anywhere in their enterprise. And for retailers, this reality means driving innovation as an intelligent enterprise that consistently focuses on one channel the customer channel.
The retail industry continues to be disrupted by multiple forces that have influenced the marketplace over the last two years. Customers increasingly expect brands to provide a frictionless experience across digital and physical channels while keeping their data protected and their privacy secure. New responsibilities for in-store employees present considerable challenges in maintaining talent safety and health. Furthermore, disruptions across the supply chain continue to impact inventory levels and optimal assortments.
scroll
scroll
scroll
scroll
scroll
scroll
scroll
top
scroll
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
An Industry Fundamentally Impacted
Balancing Personalization and Privacy
Complementing Physical and Digital Experiences with Each Other
SURVEY METHODOLOGY
Growing Talent While Helping to Ensure Their Safety
Staying Focused on the Supply Chain As a Critical Asset
Summary