CSA Exclusive: Oracle's Mike Webster discusses the great customer pivot
Retailers need to adopt leading-edge omnichannel solutions to remain competitive in the post-COVID-19 consumer landscape.
Chain Store Age recently spoke with leading industry expert Mike Webster, senior VP and GM, Oracle, about how retailers can better meet the demands of modern customers. Highlights from the conversation are below:
Customer behavior
According to Webster, retailers are being forced to pivot to meeting the demands of their customers due to significant evolution in how they shop, which has been intensified and accelerated by the COVID-19 pandemic.
“There has been a seismic change in consumer behavior,” said Webster. “Expectations for a seamless omnichannel experience have never been higher.
By providing store managers and associates with mobile solutions, Webster said retailer can help store staff effectively manage crucial omnichannel workflows such as curbside pickup and buy-online-pickup-in-store (BOPIS). Mobile-enabling customers can also help them shop the way they want.
“Consumers want to go back to stores,” said Webster. “The store is the 50% higher preferred channel for grocery shopping. As part of the customer pivot, how do retailers help enable overcome disruptions in areas like labor and logistics? Number one, you give customers mobile tools.”
Sustainability
As part of their efforts to better meet the needs and wants of customers, Webster said retailers also must work toward sustainability in their supply chains.
“Customers want to know about the product they’re buying and the company they do business with,” stated Webster. “Shoppers want to frequent retailers and brands that comply with standards for ethical labor and sustainable materials and ingredients.”
Webster advised that in addition to ensuring customers are provided transparent access into product sourcing, retailers should leverage artificial intelligence (AI) and machine learning (ML) technology to provide their buyers and merchants with greater insights into supply chain sustainability, such as different product attributes and fulfillment methods.
A look ahead
When asked to provide his predictions for major retail technology trends during the next 12 months, Webster focused on developments in AI/ML and mobility.
“There will be continued expansions in AI/ML technology, with capabilities embedded in all retail cloud apps and services,” explained Webster. These will not be bolt-on features, but integrated into the fabric of solutions.”
As a result, Webster said retailers will be able to perform tasks such as optimizing for size profile and pack size and executing transfers within categories with AI and ML features that are natively embedded in the cloud services they use.
Webster also sees retailers taking full advantage of the proliferation of 5g-enabled wireless networking technology, both on the customer- and employee-facing sides of the enterprise.
“With the integration of 5g into mobile devices, retailers will have the capacity for continual monitoring of their staff and supply chain, including end-to-end fulfillment,” he said. “Especially in the direct-to-consumer and third-party logistics verticals, there is a continuing trend toward mobile.
In addition, the coming ubiquity of 5g-enabled mobile devices will allow retailers to take advantage of 5g capabilities in their consumer apps. He said this will also lead to a mobile POS experience in stores, which should benefit both associates and customers,
“There will be 100% mobile POS, with no fixed POS terminals in the store,” predicted Webster. “The goal with 5g is how to get staff and customers into an intimate experience. Retailers are growing the role of mobility as technology like body-worn devices and Internet of Things IoT-enabled devices become more commonplace. Retailers are using mobile devices to run pop-up stores.”
Global luxury retailer goes mobile, increases customer focus
Swiss luxury brand Bally, which offers shoes, bags, accessories, and ready-to-wear fashion, provides a real-world example of a retailer implementing some of the changes Webster discussed. For example, Bally is replacing its current POS systems with the Oracle Retail Xstore platform across 18 countries.
By leveraging mobile Oracle technology, Bally intends its associates to have easy access to the data which will help them understand customer preferences better. In addition, Bally seeks to enable store associates to move freely and be able to help customers find the merchandise they are seeking—in-store or online—and check out with ease.