Cloud Computing Model for Retail Operations in 2020 and Beyond - Tata Tele Business Services

Cloud Computing Model for Retail Operations in 2020 and Beyond

To impact purchase decisions and offer customers what they expect, retailers today must build detailed consumer profiles. They must source data from multiple touchpoints and enrich it with advanced analytics insights to categorise their customers for marketing. The cloud provides scalable computing power delivered as- a-service on a pay-per-use model and enables retailers to meet the demands of the digitally connected consumers.

The retail industry today is undergoing an exciting transformation wherein the power has shifted from the seller to the buyer. Consumers regularly use social media and review platforms to influence others’ purchase decisions and product trends. They research online comprehensively and expect seamless experiences regardless of the medium – digital/brick and mortar store/TV shopping channels – they use to buy from a merchant.

Amidst these changes, retailers are under tremendous pressure to deliver new business capabilities faster and stay competitive. The leading players have come to acknowledge the vital role of the retail cloud computing in enabling a technological reinvention. According to a report by Boston Retail Partners, by the end of 2020, 81% of retailers¹ will deploy cloud-based unified commerce platforms to support commerce across the enterprise’s stores, mobile users and the web.

Besides the general benefits of cost-efficacy and disaster planning, retail cloud computing is now attracting retail stores with several advantages specific to their domain.

Let’s understand the advantages of cloud computing in a detailed manner.

Enables real-time inventory view and redefines customer service

Retailers can use cloud technology to improve their customer service management. There are cloud apps that provide them with insights to deliver personalised, customer-centric offers and targeted services.

Through these apps, store associates have direct access to the inventory lists and product specifications across the retail brand. When customers seek any information – such as an item’s availability, price, or the possibility of delivery at a location – service associates can retrieve it in real-time. Moreover, they can give the correct details via chat, phone calls and timely website updates.

Cloud also helps retailers to automate repeatable business processes, giving them more time to personalise their interactions with customers.

Optimises pricing and margin management

“This mobile phone costs Rs. 9,300 on Amazon, but it’s available for merely Rs. 8,500 on Flipkart." This is a common comparison made by buyers.

In the age when consumers have multiple platforms to buy from, pricing has become one of the most data-heavy responsibilities for retailers. They must be aware of their competitors’ prices, analyse re-pricing opportunities, check the sales history of a product and also look into the margin and sales implications.

For most retailers, this process had been largely manual. With data usually distributed across different channels, there is no single source of truth, making insight generation difficult and time-consuming. If the insights are not timely, the opportunity is lost by the time retailers use them for pricing decisions.

Cloud data platforms ingest several data sources and process them for analysis. This technique reduces the manual efforts for data analysts and gives them more time to focus on modelling. The cloud also helps retailers to integrate data from external sources and leverage machine learning for actionable insights.

Helps to manage loyalty programs more efficiently

C-suite officers in retail organisations are expected not only to acquire new buyers but also retain loyal customers who frequently purchase from the brand and have high lifetime value. Loyalty programs have been traditionally used for customer retention, but they are not easy to build because the multiplicity of channels makes customer identification challenging.

Another hurdle is that data is siloed at the store level and is not processed in real-time. Mobile-app-based loyalty programs help to engage consumers during the purchase process – but future-ready retailers aim to engage them before, through, and after the purchase.

By integrating multiple data sources for a unified view of buyers across transactions and platforms – in-store, web, mobile and social media – cloud empowers batched as also real-time processing. This process helps marketing teams to personalise buyer experiences across channels.

Retailers can also leverage the cloud’s capabilities to develop their branded loyalty apps and use its bespoke marketing tools to promote app downloads.

Grows with the business

Cloud enables retailers to scale their IT infrastructure without having to invest in additional devices and servers. It also helps them respond quickly to changes in consumer demand during festive offers and new product launches.

It is feasible to spin up cloud data within a day sans upfront capital expenditure. And when there is no facilities-development cycle involved, retailers can conveniently build an overseas presence. With a cloud-based PoS system, they can seamlessly integrate new storefronts and additional workforce with ease. The funds saved on IT hardware can be directed to the purchase of suitable properties, physical store infrastructure and management of legal components.

When retail applications and custom software are run in the cloud, there is a consistency in operations, and franchisees can also rely on the same web-based apps to build and grow their business.

By 2020, an entire generation will have grown on a dosage of digital devices. They are living in a consumer-driven world and can make purchases in a few clicks. The retail industry must keep upgrading its capabilities to meet the expectations of these digitally-aware buyers. And the cloud offers plenty of opportunities to do this cost-effectively.

At Tata Tele Business Services, we offer bespoke cloud solutions for businesses across industries and also help our clients to connect securely to their cloud resources through privatised networks.

To know more about our products and services, call the team at 1800-266-1515.

Sources:

1- https://www.retailtouchpoints.com/topics/omnichannel-cross-channel-strategies/survey-81-of-retailers-will-deploy-unified-commerce-platforms-by-2020