Digitalization in retail has ceased to be just a trend and is now a reality that is redefining the sector. According to figures released in Digitail 2024, companies embracing digital transformation are experiencing revenue growth up to 5 times greater than those that have not yet adopted these strategies.
The impact of digital transformation is global.DataThe World Economic Forum indicates that in 2025, digitalization will contribute approximately US$100 trillion to the economy.
As highlighted by João Paulo Amadio, vice president of strategy and growth atCoretava, a company specializing in customer loyalty, “in a market that is increasingly focused on personalizing customer experiences based on behaviors, in order to build loyalty, digital transformation is essential for companies to remain competitive and adapt to changes in consumer behavior. It is important to emphasize that these experiences go far beyond cashback. The general concept is for businesses to optimize their marketing investments through technology, thus increasing repeat purchases.”
A searchE-Shopper Barometer revealed that in 2023, 68% of the Brazilian population made online purchases, with an average of 3.8 orders per month. More than half of the surveyed consumers – 55% – believe they can buy about 100% of the products they need online. "To survive in this environment, which advances year after year and already represents for a significant portion of the country's population the main means of acquiring goods, products, and services, companies must understand what their customers need and offer solutions that meet these expectations," emphasizes João Paulo.
Identifying – and overcoming – the challenges of digitalization in retail
Even in a deeply connected society, with online experiences increasingly present in people's routines, implementing technology in daily retail has its challenges.
The Digital Transformation Radar in Retail – Brazil 2024 survey, conducted by BIP, indicated that 83% of the retailers surveyed still need to improve their strategies to put the consumer at the center of the business. Among the respondents, 70% admitted that the company's digital channels are not intuitive and even complicated to use, while 83% indicated that they need to improve the use of journey data and customer feedback.
"Implementing digitalization in retail often requires a profound transformation in a company's culture, and this is not always easy or quick. Furthermore, the entire process starts with the company's knowledge and understanding of its customer, which also involves technology, data, and in-depth analysis," explains João Paulo.
Resistance to change and lack of knowledge about digital technologies are significant barriers for retail, which often deals with traditional methods. Furthermore, the lack of clarity in the digital transformation strategy can also impact the flow, considering that data security and privacy are also growing concerns.
The vice president of strategy and growth at Coretava states that, "to overcome challenges, it is essential to foster and accept a culture of innovation. This helps reduce resistance to change and promotes an open mindset to new ways of working, connected to the present and paving the way for the future. Addressing these barriers and adopting appropriate solutions allows companies to reap the benefits of digital transformation, achieving greater efficiency, growth, and profitability."
DataIndicate that 86% of customers are willing to pay more for a great experience, and that 57% of consumers will not recommend a company with a poorly designed mobile website. And if a website is not mobile-compatible, exactly half of the customers will stop visiting it, even if they like the business.
How to make technology an ally in business?
The change in consumer habits, especially those related to new technologies, is leading retailers to change the way they do business. There are various challenges, but they also bring good opportunities.
"Technology is a great ally, allowing companies to go beyond in terms of the consumer's digital experience. Through it, it is possible to improve everything from basic processes, such as offering a responsive website and effective customer service, to introducing a gamified experience that provides personalized benefits to each brand's customers, increasing the average ticket, retention, loyalty, and overall business success," emphasizes João Paulo.
The specialist emphasizes that the modern consumer seeks an increasingly simple and hyper-personalized shopping experience, which must be based on digitalization and data. Customer loyalty in retail is the primary step to promote brand recognition, establish a lasting relationship between companies and consumers, and encourage repeat purchases, creating a continuous cycle of engagement and loyalty that contributes to the sustainable growth of the business.
Finally, although implementing digital transformation in retail may pose some challenges, it is an unavoidable change that will ensure long-term success. "Understanding customer needs, integrating new technologies, and adopting a gradual approach are essential steps to achieve a successful digital transformation," concludes João Paulo Amadio.
