How Digital Transformation is Improving Retail Customer Experience
Published at June 15, 2023

In an increasingly digitally connected world of retail, going digital can provide significant benefits in enhancing the customer experience.

A study found that the main benefits of adopting a digital model were increasing operational efficiency by 40%, enabling 36% faster time-to-market, and 35% helping to meet customer expectations.

In addition, Stadust Testing also stated that 86% of buyers are willing to pay more for an enhanced customer experience, and 73% say customer experience is an essential factor in their purchasing decisions.

Digital retail has emerged as an effective solution to meet increasingly high customer expectations and improve customer experience.

How can going digital improve customer experience in the retail sector? Let's take a look at strategies to improve customer experience in the retail industry.   

Enhancing Customer Experience with Digital Retail

The role of digital in retail customer experience is undoubtedly critical. Digital technology allows retail businesses to create personal interactions, provide easy access, and increase efficiency in the digital customer journey.

Quoted from Super Office, Deloitte reports that companies with higher digital transformation maturity show 45% revenue growth. Additionally, 29% of highly digital companies said a positive impact on innovation growth, while 41% emphasised a positive effect on sales and marketing functions.

Here's how digital retail can enhance the customer experience and its benefits in achieving business goals.

1. Easily Purchase

In digital retail, customers can easily purchase products through online shopping platforms. With just a few clicks, they can explore different products, compare prices, read customer reviews and make better buying decisions.

According to The Platformation Company, today's customer journey only sometimes starts in a physical store; 90% of all purchase decisions begin with an online search.

Digital retail removes geographic and time barriers, provides convenience for 24/7 shopping, and delivers higher customer satisfaction.

2. Product Personalisation and Recommendations

One of the strengths of digital retail is its ability to collect and analyse customer data.

With a better understanding of customer preferences and behaviour, retailers can provide a more personalised and relevant experience. 

Using algorithms and artificial intelligence, digital retailers can offer product recommendations tailored to customer preferences, encourage further purchases, and strengthen customer loyalty.

3. Closer Interaction through Social Media

Social media has become an essential platform in digital retail. Retailers can use social media platforms to interact directly with customers, share the latest product information and get real-time feedback.

Retailers can build closer customer relationships, maintain trust, and increase customer satisfaction through direct and interactive communication.

4. A More Interactive In-Store Experience

Digital retail is also bringing changes to the shopping experience in physical stores.

Using augmented reality (AR) and virtual reality (VR) allows customers to have a more interactive experience when shopping at physical stores. AR and VR technologies can also help retailers overcome barriers preventing customers from purchasing.

Stadust Testing found that around $70 billion worth of home improvement projects never came to fruition because consumers needed help to visualise the result.

AR and VR technology can enable customers to try products, see product visualisations in a virtual environment, or even access additional information through mobile applications. This creates a more exciting and entertaining shopping experience for customers.

5. Faster and Responsive Customer Service

According to Stadust Testing, 80% of brands globally use chatbots or plan to use chatbots to communicate with consumers.

In digital retail, customer service can be improved through chatbots and artificial intelligence-based customer support systems. Chatbots can respond instantly to customer inquiries, help resolve common issues, and provide needed information.

Digital Tools for Improved Retail Customer Experience

In digital retail, several digital tools can enhance the customer experience. Here are some digital tools that can help retailers create a better customer experience:

  • E-commerce Platform: E-commerce platforms make it easy for customers to browse and buy products online.
  • Mobile Apps: With the advent of mobile apps, retailers can create a more personalised and accessible customer experience. Take VirtualSpirit, for example; VirtualSpirit is one of the best mobile application agencies that develops custom web and mobile apps and caters to clients' needs.
  • Data Analytics: Customer data from multiple sources, such as e-commerce platforms or mobile apps, can provide valuable insights into customer behaviour and preferences.
  • Chatbot and Automated Customer Support: Artificial intelligence-based chatbots can provide automated and responsive customer service. Chatbots can be integrated into e-commerce platforms or mobile applications to provide fast and efficient customer support.
  • Product Personalization and Recommendations: Machine learning algorithms and techniques can provide product recommendations tailored to customer preferences and behaviour.
  • Easy Payment Experience: Digital payment tools, such as digital wallets or online payment systems, can make the payment process quicker and easier for customers.
  • Social Media and Digital Marketing Campaigns: Social media platforms, such as Instagram or Facebook, can interact directly with customers, promote products and get feedback.



Digital transformation is reshaping the retail industry, driving significant improvements in the customer experience. 

Retailers can meet evolving customer expectations through the convenience of online shopping, product personalization and recommendations, closer interactions via social media, more interactive in-store experiences, and faster customer service.

Leveraging digital tools allows retailers to create more personalised, convenient and interactive customer experiences. This will help build long-term customer relationships, improve customer satisfaction, and promote retail business growth. 

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