James Hughes, Retail CTO, Verizon Business, discusses why CIOs and CMOs need to work closely together to implement game-changing, consumer-gratifying technology across their organisations successfully.
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. We’ve seen great examples of holographics being used on the high street so shoppers can try on clothes, enhancing their in-store experience. Brands such as Nike and Adidas have led the charge in virtual retail reality, with stores in the metaverse, but these technologies are still yet to become mainstream across the grocery industry.
Despite IDC expecting 95% of retailers to have invested in emerging technology like GenAI by the end of 2027, many are still a long way from successfully taking advantage of their full potential. So, what will be the catalyst that means grocery retailers finally harness these innovations, pair 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 individuals is pivotal to driving 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.
And never before has there been a better time for a CMO to utter the phrase ‘care to dance’ to their CIO counterpart than right now. After all, the values and demands of consumers are becoming increasingly more complex all of the time. Already, 61% of shoppers say they prefer to shop with brands who offer technology like AR experiences, 62% say they won’t shop with a brand that can’t offer them personalisation and an incredible 91% are more likely to shop with a brand that recognises them, and provides relevant offers and recommendations accordingly.
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 the grocery sector, 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. Emerging technologies mean that it’s possible to provide customers with a ‘wow’ experience, it no longer needs to just be an exchange of loyalty points for in-store vouchers. It’s possible to apply them in a way that keeps them coming back for more, for example using AR wayfinding to keep the kids engaged whilst the parents do the food shop. Grocers could use the technology to enable the kids find treasure pieces along the way to help earn money off the food shop, all whilst making the experience more enjoyable for kids and parents alike.
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 effective collaboration, retailers can decide which technologies are most suited to different segments of their audience. For example, a lot of shop attendants time is spent guiding shoppers to find items that they may be missing from their shop. By implementing an immersive augmented wayfinding experience, grocery stores could not only increase staff efficiency but make the journey of finding the elusive item more engaging and fun. By 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.
Pulling on the partnership to make these experiences a reality today.
But to make the most of their investment and truly bring these experiences to life, we need the CIO and CMO partnership to come into its own. It’s important both take a collaborative approach, ensuring that the partnership enables an environment where innovative services that customers desire can be developed and delivered.
There are so many possibilities, and we don’t need to future-gaze to make them a reality. All of the above examples are connected innovations that are very possible today. If CIOs and CMOs can partner and bring in the right connectivity experts to help deliver these customer experiences, then these kinds of innovations could be up and running and redefine the grocery experience in a matter of months.
It’s never been truer that it takes two, so now’s the time for the CIO and CMO to get into hold and find their data rhythm to unleash the boundless possibilities and great customer experiences that can be achieved with the right approach to emerging technologies.
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