In just the past few years the retail industry has been swept up in a storm of technological changes and advancements – whether that be generative AI, non-fungible tokens (NFTs) or even blockchain, the list could go on and on.
Adopting many of these innovations – while incredibly exciting – does however add to the already overwhelming list of opportunities and decisions that business owners need to make regularly. While it is without a doubt important to stay ahead of the curve, constantly chasing the next big thing without fully realising the potential of what we already have can just add more clouds to the brewing storm.
Not to mention, the external pressures of inflation and fluctuating consumer spending have squeezed retailers to critical stages, prompting shifts towards further cost-cutting measures to stay afloat. So to weather the storm, businesses must now more than ever, lean into efficiency and effectiveness – doing more with less.
Going back to basics is the starting point. The fundamental elements of the retail environment – customer relationships, inventory and stock management, operations – will always remain crucial. While many retailers already have the tools and technology they need to succeed right at their fingertips, they may not be leveraging them to their fullest potential. Instead of becoming totally immersed in every single one of the latest tech revolutions, we should all try to refocus on the core aspects and work to optimise our systems and processes.
By getting the basics right, you open up even more doors and create more time to experiment your heart out with all of the greatest new technologies.
The four basics you must revisit
- Enhancing customer accounts
Yes, it may seem obvious but it’s very difficult to have a successful business without any customers. So the relationships you do have with your customers is the cornerstone of your organisation.
To optimise customer accounts, retailers should seek to create seamless, personalised experiences that aim to boost loyalty and drive repeat business. This can be achieved through simple additions like an effortless login experience and by enabling customers to easily view and track their orders. With 30% of Australians seeing loyalty rewards programs as a must-have when online shopping, according to the 2024 Australian Retail Report, being able to view and track their ‘progress’ seamlessly via their account can also be incredibly beneficial and drive additional purchases.
With Shopify tools and apps available to continually extend and customise customer accounts, retailers can keep offering genuinely useful additions like a self-serve returns portal, or even personalised product recommendations to create a more engaging and supportive experience for customers.
2. Embracing automation in operations
Automation is one of the most effective methods in reducing manual workload and increasing efficiency. From inventory management to order processing, automating these internal processes can significantly cut down on both errors but operational costs too.
Using automation for inventory ensures accurate stock levels – which can help to prevent an overstock or stockout – while automating customer service with intelligent chatbots and self-service options built to handle common customer enquiries can free-up staff, allowing them to focus on more complex tasks. Put simply, automation gives you time back to focus on the things that you do best – enabling you to operate more smoothly and grow even more rapidly!
3. Cost-effective marketing
Despite what you might hear, marketing doesn’t always need to be expensive to be effective – in fact, it can be quite the opposite. Leveraging first-party data and automation tools can help you create targeted, low-cost marketing campaigns that are tailored directly to your own audience. Email marketing, personalised discounts, and social media offers are a few simple cost-effective strategies that can yield some high returns.
Using analytics to actually understand the result and measure the success of these campaigns allows retailers to further refine their approaches – ensuring they continue to make every marketing dollar count.
4. Streamlined in-store selling
Despite the popularity of online shopping, Australians continue to show interest in brick-and-mortar experiences. In fact, Shopify research found in 2024 that 43% of Australians prefer shopping in stores, up from 38% in 2023. So, crafting a seamless in-store experience that captures interest and loyalty isn’t just a nice-to-have — it’s a business necessity.
A core ingredient of in-store selling is an efficient checkout process. Being able to accept contactless payments and process in-person card payments, even in the event of your network being down, can go a long way when it comes to removing friction for customers. With 36% of shoppers seeing instant refunds as a must-have when shopping in-store, retailers should make sure the returns process is easy and seamless. Shopify recently introduced improvements to its returns functionality, enabling employees to process refunds even without a receipt or order number and refund to a gift card.
Lastly, making sure your commerce solution connects to back-office systems and online inventories allows employees to effortlessly support customer queries and reduce queues at the counter.
Perfecting the basics is often overlooked, but it’s essential in providing the framework for you to grow and build. By focussing on these foundations, you’ll be as prepared as ever to tackle the thrilling retail storm head-on.
Shaun Broughton is managing director for Asia Pacific & Japan at Shopify.