Deloitte has released the “SM@rT Commerce: Moving to a platform based business model” report that defines the strategy for enabling businesses to win customer confidence using the power of data, analytics, and technology.
The company said that to attract and retain customers, brands especially new-age enterprises need to think beyond the traditional marketing models and offer an optimal mix of ‘phygital’ experience and ‘convenience’. It stated, in a converging marketing world online players saw a significant rise in the number of new users (as high as 50% for some players) mainly driven by tier 2/3 cities.
Deloitte added that legacy brands have largely missed taking advantage of the ecommerce opportunity by focusing excessively on the D2C opportunity. A platform-based SM@rt commerce lens shall help them accrue multiplier benefits that are 10-15X more impactful with implications on their business models and cost structures, it said.
Anand Ramanathan, Partner, Deloitte India, said, “In our ever-evolving, tech-led world, where most brands are at a nascent stage of adopting digital capabilities, SM@rt commerce enables the company to become more agile and scale more efficiently while minimising risks. It provides company the data for decision-making and enhances sustainability of outcomes and resource acquisition.”
Retailers across the world are investing in a more agile, nimble, and asset light business model to keep pace with changing consumer behaviour, government regulations, and investor sentiment. The move would create newer reasons of scale, sustenance, and deeper penetration.
Rise of tech-powered start-ups and online market players, as well as investment commitments by leading brands indicate that businesses have realised the value of building internal capabilities to become an agile and SM@rt organisation, Deloitte said.
As per Deloitte, organisations should opt for ‘SM@rt Commerce strategy, because it:
Promotes digital mindset: It enables an enterprise to unlock new opportunities activated by digital technologies in a collaborative manner.
Advocates personalised marketing communication: To stay relevant in this new phygital (physical and digital) commerce environment, brands need to share the right communication at the right time with the right stakeholder.
Focuses on digital sales and service effectiveness: Using digital technologies (AI, ML, beacon, and automation tools), organisations need to re-align their strategies to focus on customer centricity and offer enhanced experience.
Uses SM@rT pricing: It is calculated using complex AI/ML algorithms that analyses variables such as demand, competition pricing, and customers’ willingness to pay, to arrive at the optimal price.
Ensures effective management of product/service portfolio: Organisations need to identify the potential opportunities and risks, develop the right assortment mix, manage merchandising and resource allocation, and prioritise high-value products/services to come up with a winning portfolio. Such a portfolio improves the topline and captures the customer mindshare.