Retail Insights Memo by Cardlink and Found.ation

Following the Retail Insights Report, the Retail Insights Memo uses a new format, aiming to offer a brief, substantial and insightful view of the subject, namely the challenges faced by tech professionals of the retail sector. Tech experts from retail companies, startups and solution providers offered a rare point of view, that, in the form of the Memo, is a valuable read for everyone involved in the retail industry.

So what is included in this Memo?

One of the main topics discussed during the workgroup included an important new challenge for the retailers, which had not been of great concern during previous years. Returns are an integral part of the customer’s journey and a necessary “evil” for the retailers, nevertheless, there are ways to deal with the problem without significant negative consequences. The participants in the workgroup agreed that product returns to the store can be turned into a successful shopping experience for customers and an opportunity from which merchants can receive valuable data on the development of their business. What do the experts suggest? Putting more emphasis on increasing “first sales” and customer satisfaction, so that the cost of returns becomes lower and lower.

Another topic discussed in the workgroup is related to the ways Generation Z is changing retail, but also how retailers can approach them. Gen Zers are looking for totally different experiences compared to previous generations, and, therefore, a different approach from retailers. Thus, a close relationship of a retailer with them can more easily lead to a successful purchase. However, they are also looking for alternatives in regards to payments, so retailers must offer solutions tailored to their needs.

The participants of the 1st Retail Tech Communities Workgroup still had a lot of concerns about GDPR, the General Data Protection Regulation, that has had a significant impact on the retail industry, especially affecting smaller businesses. The solution could come by finding ways for the consumers to provide their data willingly. With incentives such as discounts on specific purchases or reward points on loyalty cards, they will be able to use innovative services and ideas, while, at the same time, all the rules will be followed.

Another thing that has been emphasized is that most retailers hesitate to make investments in their business, unless they are confident that they will pay off. In fact, they think more about the short-term than the long-term benefits to their business, either because of financial pressures or because of an old mindset. It is, therefore, a huge challenge to train a retailer to be able to balance the need for innovation, that is increasingly intense given the competition, with the concerns for ROI justification. Collaborations between solution providers could result in lower-cost service packages that could prove to be more attractive for small businesses.

Learn more about the Memo and the Retail Innovation Hub inititative

Read more insights covering the challenges of the retail market and what the experts have to suggest, by downloading your free copy of the Retail Insights Memo. Make sure to also visit the Retail Innovation Hub by Cardlink website, where you’ll learn more about the open calls, the events and the available resources for everyone involved in the retail business.