The Fourth Industrial Revolution, also known as Industry 4.0, is changing the way companies operate, their internal processes and, therefore, the technological environments in which they must be involved. But before we start analyzing the impact that this tech and digital revolution will have on organizations, people and assets, let’s do a beginners guide to talk about what Industry 4.0 is, what we mean by impacting businesses positively and the benefits of adopting it.

What is Industry 4.0?

Industry 4.0 is an evolution of industry that focuses heavily on interconnectivity, automation, machine learning, and real-time data. It integrates production and physical operations with smart digital technology and big data analytics to create a more holistic and better connected ecosystem. While every organization operating has different business models, physical systems and production processes, they all face the same challenge: the need for connectivity and access to real-time information.

Industry 4.0 is not just about investing in new technology and tools to make process improvements, change the manufacturing execution or boost productivity and efficiency, it’s about revolutionizing the way your entire business operates and grows in all the value chain.

These are exciting new technologies, but leaders of organizations must identify the ones that best meet their needs and support their manufacturing processes to increase efficiency in their companies.

Now that we have a scope of what the Fourth Industrial Revolution is, let’s analyze the impact of implementing this tech revolution in companies and their business process to stay updated. The impact that it has is much broader, affecting all industries, from the United Kingdom to the Middle East and its societies. Technologies related can also lead to entirely new products and services. The use of sensors and wearable devices, AI and machine learning to analyze large amounts of data, autonomous mobile robots, among others, will allow improvements in products from the creation of prototypes to the incorporation of connectivity, to other devices. These changes are reflected in the supply chain and, consequently, in customers.

What are the impacts of Industry 4.0?

The impacts of the Fourth Industrial Revolution can be felt at multiple levels: in ecosystems, at the organizational as well as individual (client) level:

– Ecosystems. In addition to the change in which horizontal and vertical systems operate, Industry 4.0 affects all the people who are part of the supply chain: suppliers, customers, board of directors, partner programs, among others. 

– Organizations. The ability to adjust and learn from data in real time can make organizations more responsive, efficient and productive. It also enables the organization to reduce its productivity risks, have preventive maintenance and smart manufacture in products.

– Individuals: Industry 4.0 can mean different things to everyone. For example, for employees it may mean changes in their inventory management, optimized processes and smart machines that are actual autonomous robots. While for customers it could mean digitally transformed processes and greater customization in products and services that better meet their needs.

What are the challenges of Industry 4.0?

Finding the right Industry 4.0 fit. The true challenge is that it isn’t always clear for companies which innovation initiative to adopt. Fourth Industrial Revolution offers a variety of options which carry high complexity risks due to the little experience we have in the implementation processes. That is why it is decisive for companies to make an exhaustive analysis and have a ROI calculator to make this great investment a success.

And for those companies that have already selected Industry 4.0, there are still barriers to  overcome. A real world example would be: How will companies build paths to select, justify and leverage the functionalities available to them? 

From a technology perspective, increased connectivity and cloud computing mean that issues like cyber physical systems and data ownership must be addressed. Companies must choose projects that are consistent with their business process, identify what the benefits of these technologies are and create the infrastructure to be able to incorporate them successfully.

It’s been awhile since ecommerce platforms started to grow and have become increasingly popular in the retail industry, opening the doors to global online shopping and retail ecommerce sales. Many companies have left behind the traditional physical store to expand on the ecommerce market. Today, partly due to the COVID19 pandemic, online retail sales have become the preferred purchasing method for consumers. As brick and mortar stores temporarily closed their doors, buyers relied on ecommerce retailers to purchase everything, not only through websites, but also through social media, online marketplaces and apps. Retail ecommerce is an informative source with a lot of impact, and allows companies to get closer to their target audience.

This business model has been key for small companies in the supply chain to grow and access other markets, from Asia Pacific to  North America, Latin America or the United Kingdom, something very difficult to achieve with traditional retailers and physical stores. Not needing large infrastructures and being able to do this without limitations such as time, space or logistics, cross border ecommerce has been one of the main causes that have led to its expansion. But how can we take advantage of this technology and implement it in our ecommerce business and shopping experience?

Well, let’s get back to basics and remember that in the retail industry it’s all about the consumer. Delivering a unique and personalized customer experience (CX) is of vital importance for both B2B ecommerce and B2C ecommerce organizations. Those that adopt an ecommerce model with the best-in-class CX will boost loyalty and ensure long-term revenue growth.

Currently, the ecommerce market is booming, and the Covid19 pandemic has given it the final push. Here is some data that confirms the ecommerce growth over the past year:

• U.S. consumers spent $78 billion online in March, up 49% year-over- year, according to the latest Adobe Digital Economy Index.
• Nine out of the world’s 10 largest ecommerce companies experienced double-digit revenue growth during the pandemic year of 2020, according to a recent GlobalData analysis emailed to Retail Dive.
•  83.7% of consumers said that the pandemic has prompted them to use more Internet to buy compared to traditional commerce, according to the 2021 Annual Ecommerce Study of IEB School.

In a recent Harvard Business Review Analytic Services survey, of nearly 1,100 executives, 42% expect the ecommerce leaders in their organizations to play a role when it comes to customer insight and sentiment analysis in the upcoming years.

Online sales are now part of the digital transformation of our everyday life, but still not optimized in many organizations. For an ecommerce system to be maintained over time, it is necessary to study the market situation, the viability of the project and have a team of people trained to carry out the processes. 

These are some focal points to keep in mind in order to carry out a successful ecommerce business:

• Create a business plan and investment feasibility for the ecommerce platform.
• Loyalty and digital marketing strategies.
• Choosing the right platform for creating an online store.
• Logistics and payment methods.
• Internationalization of the company to create a global ecommerce platform.
• Keep track of metrics to monitor social media.
• Study ecommerce trends such as Bockchain, Big Data and Machine Learning.

According to Harvard Business Review Analytic Services, leading retailers can study customers behavior online, via an app or other digital marketing channels, and determine with these technology advances if the CX is working or how it could be improved. Many companies have successfully broken down data using customer relationship management (CRM) systems for online shopping, internal communication tools, application programming interfaces, or cloud computing. For global retail ecommerce to be successful, retailers need the ability to see buyers’ interactions all in one place, whether they are in brick and mortar stores or online shopping.

The 2020 COVID pandemic created a new era of eCommerce and usage of marketing platforms. Customers are increasingly connected, mobile and socially influenced, therefore retailers of all sizes have the ability to create an effective online presence with digital advertising and leverage a multitude of advanced tools to drive more engaging experiences for their customers. Nine out of ten shoppers are now prioritizing experience using retail platforms that enable a seamless experience in store.

The growth of digital and social media platforms carry different responsibilities when exposing personal data. On one hand, users seek data protection since they do not want to be overloaded with digital advertising or have important data like passwords and bank numbers stolen. On the other hand, advertising industries seek to use this data to create personalized customer experience in their websites and targeted ads. However, earlier this year Google announced that by the end of 2023 it will end third-party cookies in Chrome, its proprietary browser and the most used in the world. This was a great shock for companies that use Google Chrome, Adwords and Analytics as part of their marketing and communication strategies, as they will have to rethink their advertising plans to track and target users in the near future.

Third-party cookies are those sent to the computer, cellphone or other device connected to the internet by a third domain, that is, outside the page being visited, and are commonly used to track user habits and offer personalized advertising. They can be differentiated from firstparty cookies sent to the system by the browsing history to facilitate future visits by remembering user names, passwords or browsing preferences. Due to the valuable information they provide about digital users and their preferences, cookies constitute a basic pillar for advertisers and publishers, and are used to sell advertisers digital broadcasting spaces adjusted to the target audience.

That is why when Google made the declaration that they would stop using third party cookies, the obvious question was: does this mean that companies will no longer be able to track user data? And what does this represent for ad businesses that depend on ‘cookies’ to create product positioning, targeted advertising and google ads?

It is important to note that Google makes most of its revenue through paid advertising delivering results for advertisers, and its services rely on third party cookies in one way or another. Until June 2019, 94% of internet searches occurred in a company belonging to Google. (Jumpshot via Sparktoro, 2019). So Google ending Chrome’s support of thirdparty cookies is not the end of tracking in Google Chrome. The need for true end-user consent to process personal data will persist long after third party cookies and the technologies replacing them.

It was not an overnight decision, other web browsers were on the same boat. Apple began to implement it with Safari and Mozilla with Firefox, promoting its own mechanisms to block thirdparty cookies, a basic element of the functioning of the webs and, above all, fundamental for online advertisers. Google’s decision continued this trend to have more privacy for Chrome users, however it also opens the door to consolidate its monopoly. How? Promoting a successor of cookies that is of interest to Ad Managers and the adtech industry in general.

To mitigate the great impact that the suppression of thirdparty cookies in Chrome may have on the digital advertising market, the Mountain View (California, USA) firm relies on its “Privacy Sandbox”  initiative, which is still in development. Announced in 2019, Privacy Sandbox aims to create open standards that improve privacy on the web, allow users not to share their data or online activities as much as possible and, at the same time, be useful for advertisers and publishers to create targeted ads for specific audiences.

The launch of open standards is still a few years off, so what can companies do in the meantime to take care of their users’ data? One option is to use a consent management platform ensuring that your website detects and controls all cookies and trackers, delivers transparency and a choice of true consent to its users before collecting their personal data.

Due to so many technological and digital changes, retailers are wondering how to create an in-store and out-of-store brand experience that is relevant to consumers, improve the customer relationship between their company and audience, and differentiate their service from the competition. Positive customer experiences in physical stores, as well as digital experiences, are the center of brand loyalty, high levels of customer satisfaction, as well as successful retail operations, providing a reason for customers to keep coming back to the store, shop on the mobile app and follow you on social media.

But, while the demand for improving the customer experience is increasing, many retailers are struggling to develop assertive cx strategies that offer a competitive advantage and a real emotional connection with their brand. So the question we are all asking is, how can companies create successful customer experience strategies and manage a customer journey with a strategic approach to better understanding customer expectations in the retail industry? 

First of all, as the impact of technology grows in the industry, action plans must be made. Retailers must invest in analyzing customers and optimizing their technology to improve the experience. Journey mapping helps visualize how customers interact with a product or service, and how they feel along the way.

The Engaged Shopper

Nowadays, shoppers expect to have a digital customer experience in which they can buy in real time, have live chats and go through all the customer journey experience without having any problem or bad experience. If shoppers can readily purchase a product on instagram, via an influencer on Tik Tok or during a livestream, it will be increasingly difficult to force them to model the traditional customer experience either in store or online. As a result retailers have to design their shopping and user experience around these changing online customer needs and behaviors.

Successful retailers are investing in buying online pickup in store, buying online ship to home, buying online return in store and other fulfillment methods to drive efficiency in the shopping process. To keep customers engaged, companies have to craft a purchasing experience that is seamless, quick and comfortable for every shopper regardless of levels of engagement. Also, measuring customer emotional connection is a must in the experience management, it allows retailers to have customer feedback on their shopping process.

The Holistic Customer

Customers are increasingly shopping across multiple channels and with varying levels of engagement, creating a non-traditional customer journey that makes the brand experience different for every buyer. Consumers have sporadic presences, the way every shopper interacts is different, that is why understanding digital customers is critical to empowering an effectively personalized shopping experience and increase the customer satisfaction.

If your customer likes to shop online for certain products, but likes to come in store for more engaged shopping processes, only some cx strategies will work for them. Sending them an in-store only coupon for a t-shirt might not be the way to get them in store. But, for a pair of premium shoes they might make the trip. Managing customer experience and building a holistic vision of every customer that is accessible across channels is absolutely essential for positive experiences and customer loyalty.

A Connected Approach

The true key to making customer experience strategies even more effective, is through enabling a connected approach. This takes the form of 3 critical systems that work together to empower seamless commerce:

Mobile Point Of Sale

The Teamwork mobile point of sale enables a flexible purchasing journey, customers can avoid long waits & brands can ensure that purchases can be easily managed and fulfilled, creating superior customer experiences and positive customer feedback.

Order Management System

Flexible fulfillment is critical, especially with customers purchasing products from anywhere. Orders need to be fulfilled quickly, conveniently and reliably. Mistakes and bad experiences cost customers & Teamwork understands this. The industry leading OMS enables retailers to operate with confidence, managing teams and truly take advantage of unified commerce and a positive customer relationship.

Inventory Management

Customers don’t want to wait, with ecommerce companies taking significant leaps forward in reducing shipping times, shipping costs and online availability, retailers with limited stock struggle to compete at the same level. Teamwork provides mobile app tools, so that customers experience management team is always aware of where products and the quantity of available items.

Summary

To deliver the experiences shoppers want, brands must integrate customer databases and analytics tools to create exceptional customer engagement, build brand loyalty, and increase ROI.

Are you looking to incorporate omnichannel strategies into your brand? Teamwork Commerce is specifically designed to enable seamless retail across channels, allowing you to build customer experiences that are tailored for every single shopper and provides award winning customer service.

See how we can help you create an omnichannel approach to eCommerce and implement POS Systems in your company:  twfrance.wpengine.com/mobile-point-of-sale

Experts assure that in the coming years the physical retail store will clearly continue to have its importance in the purchasing process for many consumers, but it must be complemented with many technological advances that complete and improve the customer journey experience.

Companies are aware that providing personalized experiences is the key to creating customer engagement. So what does the future of retail hold for businesses? What will the marketing strategies be like in both the physical store and online shopping? These are 5 retail technology trends that are redefining the future of the retail industry, and how that will influence the upcoming changes after the covid19 pandemic.

1. Beacon Networks

The beacon network, also known as Bluetooth Low Energy (BLE) applications, emit a signal that uniquely identifies each device, allowing any retailer to understand exactly where a customer is in the physical store. This represents a great improvement in the shopping experience for the consumer, such as the generation of personalized discounts to reward customer loyalty.

Meadowhall Shopping Centre used iBeacon technology in the Ladies’ Night event with Hotel Chocolat, Krispy Kreme, Cath Kidston, House of Fraser and other brands providing offers, discounts and prize giveaways. Customers had to download Meadowhall’s app to receive a notification on their smartphone whenever they came into range of a beacon. More than 500 app downloads were done within the first three hours and 120 hotspot offers were redeemed within the first 52 minutes of the event.

2. Augmented Reality

Can you imagine experiencing within an app how a dress looks on you, without having tried it on before? This is possible due to the ‘virtual fitting room’ in augmented reality.

Zara has started to implement it through reality mannequins and a new ecommerce platform that shows life-size models wearing the brand’s latest clothes. This enables retailers to generate online sales since it is possible to buy the clothes through the app.

 According to a study of tech trends by Retail Perceptions on how augmented reality impacts, 71% of consumers would buy more in that store if they were allowed to experience the products through this technology, which translates into more sales and a lower rate of return.

3. Virtual Reality

Virtual reality allows customers to get a more realistic idea of ​​what that product would look like before buying it, making better purchasing decisions and creating unique customer experiences. ABI Research has estimated that virtual reality will generate 1.8 billion dollars in 2022 in the supply chain.

IKEA has already implemented it. Now customers can use their VR headsets to view rooms that have been previously designed with IKEA furniture and can even be customized, such as changing the color of furniture, items or spaces to see an estimate of the result.

Alibaba, the Chinese e-commerce company, already uses virtual reality through its VR Buy + mobile platform so that users can have a better visualization of the product they are going to buy.

4. E-wallets

Digital payments are increasing more and more in the world. Digital wallets are expanding to more than 20,000 stores and 31% of Americans will likely use a digital wallet on their mobile device.

For a user, having an electronic wallet means having debit and credit cards linked to an app and selecting the most appropriate option when making an online purchase. Using the administration panel that comes with an e-wallet you can manage all the information about the payments made and store operations.

For retailers, it’s about simplifying the checkout process, having store automation and saving considerable time. Payments can be received through debit or credit cards (like MasterCard or Visa) as long as the consumer has a merchant account. The advantages are that they do not have to set up separate payment systems and the provider is the one who takes care of the account maintenance.

5. Delivery with drones

Customer behaviors have evolved since covid19 pandemic, the huge increase in e-commerce and online shopping over the past year has paved the way for new ways of delivering goods to consumers. In a few years, it is expected that drones will be able to be seen in the sky making house-to-house deliveries in American cities.

Amazon is a pioneer in delivering packages to customers in an average of just half an hour. The shopping app it’s called Amazon Prime Air and they are air packages that weigh 2.27 kilos or less. They can only operate in sparsely populated areas, rural or residential neighborhoods on the outskirts of the city. In the future, this type of delivery method could increase.

Summary

These tech trends in the retail industry are excellent technological advances to start making the changes that allow businesses to increase their possibilities of sales, loyalty programs, their visibility and brand positioning. The technological trends will continue to evolve, and it is very likely that such evolution will continue in the direction that omnichannel is pointing.

Are you looking to incorporate omnichannel strategies into your brand? Teamwork Commerce is specifically designed to enable seamless retail across channels, allowing you to build customer experiences that are tailored for every single shopper and provides award winning customer service. 

See how we can help you create an omnichannel approach to eCommerce and implement POS Systems in your company: https://twfrance.wpengine.com/mobile-point-of-sale