The corona pandemic has acted as a driver for digitization in most companies. Important points have now been set almost everywhere. Now it is important not to slacken efforts, because new tasks are already waiting. Based on a survey of around 1,000 managers, the Bank Blog has identified challenges that banks will increasingly have to face in the future, including changing framework conditions, new customer demands, and the lack of conviction among employees. But it is also worth taking a closer look at these challenges in the retail sector in order to be able to make informed decisions in good time.
Recognize changing framework conditions
Digitization is more of a duty than a freestyle for companies today. There are considerable innovations associated with it. In the retail sector, these relate primarily to changing framework conditions. E-commerce, for example, is becoming increasingly popular with customers and new mobile technologies are making their way into stores. In order to adapt to these changes and prepare for the future, it is therefore worth taking a look at customers as well as employees.
The customer is king
Particular focus should be placed on customer wishes and needs. For example, cash continues to be significant for customers and is often the payment method of choice when shopping. That is why the decline in access points to cash, due in part to the elimination of ATMs, has led to cashback becoming more prevalent in stores.
You can read more about how payment methods have changed in concrete terms in our blog post “EHI study: card payment on the winner’s rostrum, cashback challenges retail”. Since cash remains important for customer loyalty, new, more efficient ways must be found here as well. Above all, those responsible must create processes that optimize cash handling and turn digitization into true added value for the company.
Convincing employees
In addition, retailers must always keep their employees in mind as part of the digital transformation. After all, they are the ones who can ultimately benefit from the change in their day-to-day work. In this context, a lack of conviction on the part of the team vis-à-vis the innovation has to be gotten out of the way. After all, despite the higher IT complexity of individual processes at first glance, the use of digital applications, such as the paperless back office via smartphone, is usually simple, more effective and less error-prone.
In addition, digitization can be seen as a motivator. Recurring activities can be automated. As a result, this relieves employees and frees up time for customer service. At the same time, the resources saved mean that the company can counteract the shortage of personnel.
Important step: process digitization in cash handling
Digitization thus plays a central role in business success. For this reason, retailers should understand it not only as an approach to optimizing personnel cost structures. After all, the digitization of processes supports employees in their daily work and creates relief for the company by saving resources, for example by generating and evaluating data on KPIs.
Particularly with regard to cash management, process digitization can also work wonders. Digitization helps to link this to simple processes for retailers, especially their employees. Data collection as part of process digitization can, for example, help to completely automate recurring activities. A wide variety of information can be stored centrally and ultimately evaluated as part of forecasts and analyses. This in turn helps with reliable decision-making, for example with regard to logistics. In addition, paperless digital processes promote sustainability and transparency.
Retailers should consider the following aspects for transformation and process digitization:
- – View digitization as a permanently ongoing process in order to continuously develop structures.
- – Involve employees: Test phases and evaluations of the solutions can help to create acceptance.
- – Find integrated solutions: Digitization affects all areas, which are not only considered in themselves, but across the board. Keyword: interfaces..
- – Note: Especially interfaces to suppliers and service providers are essential. We at ALVARA are the optimal partner here due to the complete integration of Bundesbank, banks and WTU.
- – Capture and evaluate data points: This way, changes in performance, customer satisfaction or costs can be critically evaluated.
Custom-fit solutions
In addition to understanding what process digitization can do for cash handling, retailers must of course also find the right solution for practical implementation. With Interactive Cash Control (ICC), we have been offering an established solution for the industry for several years now. The focus here is on transparent control of cash cycles and more efficient processes for working within the store and with cash-in-transit providers.
The ICC app as a mobile solution for cash management in the back office also enables flexible working. The app creates sophisticated interfaces as the basis for automating individual sub-processes. This means that nothing stands in the way of a fast, digital exchange of information for optimized processing of current challenges.
Our ICC app will soon also be available for Apple iOS – including two new features.
CTA: Decisions for the future are now on the agenda. We support you in this.
