{"id":25576,"date":"2022-08-23T17:24:04","date_gmt":"2022-08-23T11:54:04","guid":{"rendered":"https:\/\/blog.aspiresys.com\/?p=25576"},"modified":"2025-05-12T12:54:14","modified_gmt":"2025-05-12T12:54:14","slug":"why-you-should-look-inward-during-an-economic-slowdown-a-cmo-perspective-on-how-to-pivot","status":"publish","type":"post","link":"https:\/\/www.aspiresys.com\/blog\/retail\/retail-industry-trends-insights\/why-you-should-look-inward-during-an-economic-slowdown-a-cmo-perspective-on-how-to-pivot\/","title":{"rendered":"Why you should look inward during an economic slowdown – A CMO\u2019s perspective on how to pivot."},"content":{"rendered":"\n

In the past two years, the pandemic has been\nthe biggest and single-most catalyst for retailers to accelerate their digital\ntransformation. However, there is an irony \u2013<\/strong> with rapid digital\ntransformation initiatives, the post-COVID-19 business and political\nenvironments have been key reasons for inflationary pressures, which in turn, directly\naffect consumer spending habits.<\/p>\n\n\n\n

What can Retailers do about it?<\/strong><\/h2>\n\n\n\n

The good news is that most retailers at\npresent have achieved a certain level of maturity in their digital\ntransformation journeys as their systems and processes are already streamlined\nand efficiencies are in. But there are still a few areas where retailers can\nfocus to gear up for maximum success during a recession.<\/p>\n\n\n\n

Integrate, Integrate, Integrate<\/strong><\/h2>\n\n\n\n

Retailers can make sure all the revenue-generating\nand customer experience channels are fully integrated and working seamlessly.\nThis means keeping all your customer data clean and in sync. This will help the\nretailers provide new products & services as the systems of growth are already\nin place. This will also help retailers in generating revenue from multiple\nchannels.<\/p>\n\n\n\n

Multiply with Supply Chain Efficiency<\/strong><\/h2>\n\n\n\n

Supply chain\nefficiencies can single handedly help retailers sail through the recession turbulence.\nData-driven technologies can help retailers run a leaner business with better\npredictive ability in their supply chains and inventory management. By\nrethinking their approach to meeting customer demands and by incorporating\nadvanced technologies retailers can solve some of the challenges in their\nsupply chain. Supply chain technologies can offer increased flexibility and simplify\nretail operations. With a real-time view into the entire\nsupply chain ecosystem, retailers can ensure streamlined and effective\noperations, make preemptive decisions, which can further lead to meaningful\nbusiness outcomes. This will protect against some of the major roadblocks that occur\nin their supply chain.<\/p>\n\n\n\n

Know Your Customer Better. Now!<\/strong><\/h2>\n\n\n\n

During\na recession, consumers are naturally going to be more careful about spending as\nthey will look to prioritize their needs over their wants. Understanding this is\ncritical as positioning yourself as a smart retailer can help you market\nproducts and brands differently and be relevant to your customer base. This can\nhelp retailers provide smart offers and services to their customers. For\nexample, changing the product mix so that they are more relevant in the times\nof recession or an economic downturn, could be key in maintain a steady revenue\ngenerating strategy.<\/p>\n\n\n\n

With the changing consumer priorities with rise in inflation rates, certain segments of the retail industry<\/a> are getting hit harder, such as restaurants and electronics. This puts the retailers at a risk of having a higher inventory, leading necessary mark downs and squeeze-in margins. Target for example, has just gone through a similar situation with some missteps in their supply chain planning. But they were able to pivot in time and with an early recognition of the problem, they have swiftly achieved a cleaner inventory now. With Back-to-School and robust loyalty programs, retailers can still manage the impending slow down better with proper planning.<\/p>\n\n\n\n

Do a double take at Returns<\/strong><\/h2>\n\n\n\n

Managing product returns and using this a channel for growth\nwill be crucial to reduce the impact of recession. Returns of products\npurchased online account for 20-30% of total returns, compared to 9-10% for in-store\npurchases. Higher returns add costs for retailers, and to the already squeezed\nmargins under the current economic environment. If managed smartly, even\nreturns can be a growth channel, by easing return policies and launching smart programs\nto reduce returns. By creating a transparent and riskless shopping experience,\nretailers can eliminate their shoppers\u2019 returns anxiety. Delve deep into the analytics\nof returns processes and optimize that data for a better returns experience. In\nfact, by in-store returns can even be used to increase in-store sales. A recent\nstudy revealed that 87% of consumers like to return in-store while 71% bought\nmore items during their return. There is a real opportunity to cushion any\nslowdown impact.<\/p>\n\n\n\n

Conclusion<\/strong><\/h2>\n\n\n\n

Retailers\u2019\ndigital maturity has increased manifold in the past two years with the pandemic\naccelerating digital transformation. This has also increased the ability of\nretailers to withstand recessionary trends with better systems of growth and\noperations. Why look outside? Rather than looking anywhere else, Retailers may just\nfind what they need if they look inward to counter the current inflationary\neconomic uncertainty.<\/p>\n\n\n\n

Resources:<\/p>\n\n\n\n

https:\/\/info.optoro.com\/hubfs\/Optoro_CM_2019_ReturnsReport_v10.pdf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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