Spurred on by the changes they had to make during the pandemic, retailers have been dipping their toes into emerging technologies for the last few years. Consequently, technologies such as augmented reality (AR), virtual reality (VR), the Internet of Things (IoT), the metaverse and even blockchain have been implemented in stores and warehouses to enhance customer experiences, optimise supply chains, make more informed decisions, and even broach new business models.

Data has become the backbone of modern marketing, powering all aspects of an effective marketing strategy, from customer insights to market segmentation, campaign performance, customer retention, and reporting. 

Earlier this year, fashion retailer Oroton rolled out augmented reality windows across select stores, enabling shoppers to ‘try on’ its luxury handbags – without needing to step foot inside. Shopify research[1] indicates these immersive experiences can lead to 40% reduction in returns and increase order confirmation probabilities by 65% – making for a more cost-effective marketing campaign and a potential of staggering $5 trillion in value creation by 2030.

This reliance on data means the relationship between the Chief Marketing Officer (CMO) and the Chief Technology Officer (CTO) is more critical than ever and will be the catalyst that can finally harness these data sets and leverage these innovations, pairing them with connectivity and bring awesome customer experiences to life.

Two to tango: the CIO and the CMO

Well, there are two key roles at the centre of this conundrum: the Chief Information Officer (CIO) and Chief Marketing Officer (CMO). Often depicted as night and day, or the left brain vs. the right brain of an organisation, the synergy between these two offices is pivotal to driving cost efficiencies, customer experiences, and brand loyalty.

Each has a key role in bridging the divide between departments and disciplines, and the best results will be where they are in perfect alignment and synchronous. Picture dance partners working on ground-breaking moves which require a deep understanding of each other’s strengths and weaknesses. It really does take two to tango, and if you can add a little bit of trust and intuition to that mix, you’re really onto something that’s visually stunning.

Data is paramount in personalisation

Clearly, personalised experiences are imperative, so what’s at the heart of bringing them to life?

Personalisation has become an essential part of the customer experience in retail, with 80% of customers expecting it from retailers. Once customers consent to personalised experiences with the retail company (ensuring that compliance requirements are addressed), it’s about building trust and enhancing the overall experience.

Only with meaningful data can retailers better understand their customers’ wants and needs. Applying it to emerging technologies will provide them with a ‘wow’ experience that they’re going to remember and will keep them coming back for more.

The right approach for the right audience

These experiences might not be for everyone, and they’re not necessarily aimed at everyone. But data can also help retailers to understand who they will resonate with and, therefore, who to target with this kind of outreach again in the future.

Through an effective collaboration between the CMO-CIO teams, retailers can decide which technologies are most suited to different segments of their audience. As well as providing immersive experiences and offering new ways to learn about customers, emerging technologies can be deployed for back-end purposes to improve demand forecasting, inventory management, and support other critical business functions.

After all, the values and demands of consumers are becoming increasingly more complex all the time, layered with the increasing need for data security and privacy. Already, 61% of shoppers say they prefer to shop with brands who offer technology like AR experiences, and an incredible 91% are more likely to shop with a brand that recognises them and provides hyper personalised offers and recommendations accordingly. 

This makes it imperative to bring together siloed systems to create powerful, modular and intelligent solutions that can enable new functionalities, smarter insights, and faster decision-making.

This is achievable when the CMO-CIO work together through the entire retail value chain to mine data patterns to revolutionise customer journeys offering immersive shopping experiences that bridge the gap between online and offline channels, driving customer loyalty and revenue growth.

James Hughes is retail chief technology officer at Verizon Business.