The Future of Retail: Leveraging a Cross Channel Communication Platform for Better Customer Engagement

No business niche is exempt from technological transformation. The 2010s saw major changes taking place in the retail industry, traditionally associated with making sales strictly at physical locations. These changes were primarily driven by the rise of ecommerce and omnichannel retail, growth of mobile technology, and big data. 

We’re now approaching the middle of the next decade, and among retail’s main goals is to keep customer engagement high in a stimuli-rich environment. One way to achieve it is by using a cross-channel communication platform that ensures consistent interactions across many touchpoints, meeting customers where they are and enhancing their experience.

Let’s have a look at the broader picture, though.

The current state of retail customer engagement technology 

Retail technology has grown into a full-fledged field of its own. Brands in this sector, understanding the importance of adapting to evolving customer behaviors and expectations, are looking to build robust tech infrastructures that will support their operations, while keeping customers front and center. 

Since customers are more connected and social than ever, they expect retail businesses to meet them where they are, which makes multi-channel communication a must. This doesn’t mean you have to have a presence everywhere but messaging shoppers using just a single channel is most likely not enough. 

The complexity of the retail industry is growing, which puts more pressure on businesses to remain relevant but also creates new opportunities for them. Customer expectations are evolving, and this directly translates to the types of tech solutions that are applied to meet them. Having the right tools at your disposal makes it possible to better understand and engage shoppers, creating the desired experience.

It’s never been more obvious that having a closely integrated customer engagement technology is absolutely essential to staying competitive and ahead of the game. As retail tech continues to advance, your focus should be on creating seamless and personalized journeys across various touchpoints. By leveraging the latest tools and platforms, you can establish and nurture deeper connections, build customer loyalty, and turn every interaction into an opportunity to develop lasting relationships.

What are some major challenges retailers are facing today?

Before we proceed to discussing the specifics of building a robust retail tech stack, it’s worth touching on some of the challenges retailers are facing, that can be mitigated with the right tools.

1️⃣ Information security

Retailers today have to be super vigilant about information security – it’s a big deal across all parts of their business. A data breach can wreck customer trust, which is hard to rebuild. That’s why making sure every communication is secure is crucial to keep customers feeling safe and valued.

2️⃣ Fragmented customer experience

Nobody likes feeling like they’re dealing with a different brand every time they switch from a website to a store or from social media to customer service. A fragmented experience can frustrate customers and make them less loyal. Retailers need to make every interaction feel smooth and connected, no matter where it happens.

3️⃣ The complexity of managing multiple channels  

Handling multiple shopping channels can feel like juggling. With so many ways for customers to interact with a brand – online, in-store, on their phones – it’s tricky to keep everything in sync. Retailers need tools like a cross channel communication platform to efficiently manage multiple channels and keep customers happy and engaged.

4️⃣ The need for real-time data integration  

Everyone loves to feel special, and today’s customers expect that, whether they’re browsing online or walking into a store. Real-time data integration is key here – it helps you personalize experiences beyond just using someone’s name. It’s about understanding what customers want and need in the moment, making every interaction feel relevant and tailored.

5️⃣ Business sustainability  

More than ever, people care about how their purchases impact the planet. Retailers need to step up with sustainable practices – think energy efficiency and reducing waste. It’s also smart to partner with tech companies that prioritize sustainability. Showing customers you’re serious about the environment can build loyalty and set you apart from the competition.

The scale and variety of these challenges makes building a robust tech stack an absolute necessity. Here are some guidelines for you to follow in this process. 

A modern retail tech stack for multi channel marketing

There isn’t a silver bullet for all those challenges just discussed. Still, you can build a retail tech stack consisting of several key components that will cover the fundamentals and work from there, as per your needs.

A good way to go about this is to assume a platform-first approach. Look for cloud-based solutions that can be deployed across your entire organization and allow for:

• marketing automation
• integration with legacy systems (CRM, CDP)
• data processing and / or utilization
• omnichannel retail campaign management

A proper retail tech stack will consist of various tools, addressing different areas of business operations. Having a strong backend is necessary for you to deliver on all the aspects of modern retail experience customers enjoy. This, of course, includes the essential engaging communication heavily contributing to creating an unforgettable customer experience.

These retail tech stack building partnerships aren’t merely about providing a solution but more so about understanding the retailer’s aspirations and challenges. A great technological partner is a strategic ally who can anticipate and help you navigate challenges and industry trends. Having the right kind of people behind the technology is just as important as the solution itself. 

Employee engagement and customer engagement

With all the focus on customer engagement technology and how it improves the experience, you can’t forget that a successful implementation of a new addition to the stack is two-fold and involves both the shoppers and the employees at your organization.

Here are some things to consider with both these stakeholder groups.

Customers

What are the customer outcomes you’re trying to drive with the latest addition to your tech stack? How does it help you communicate more effectively, personalize your offer, collect insights, increase engagement, boost customer loyalty, and generate conversions?

Does the platform you’re trying to implement improve your understanding of the customer? Is it scalable, flexible, secure, and reliable, ensuring uninterrupted service?

Does it truly simplify your operations, leverage the mobile side of things, and work to create a fresh customer experience?

Employees

Expanding your retail tech stack is about modernizing the workforce, empowering, and driving colleague outcomes as well. Improving the tech literacy of your team is a vital investment. 

Before moving on, assess how the new platform will fit into your existing processes and perhaps even employee habits to improve the adoption level. It’s important to get everyone on board as soon as possible for the best results.

Where should retail’s focus be moving forward?

Modern day retail tech is plentiful, offering you a lot of ways to improve the evolving customer journey which has gone far beyond simply “having to go shopping”. To stay on top of things, think in terms of being able to efficiently engage shoppers both at the store and outside of it.

Specific to retail is the connected store concept, which assumes unlocking a much greater value from your brick and mortar operations by underpinning them with an integrated tech infrastructure that serves your particular needs. In order to make an accurate investment, you need to understand what kind of organization you’re trying to be, what are your and your customers’ desired outcomes, and then build your retail tech stack accordingly.

Customer engagement technology trends

Looking forward, some of the cutting-edge technologies that can prove beneficial to your business include:

• Artificial Intelligence  

AI can significantly enhance supply chain and logistics by optimizing inventory management, predicting demand, and automating routine tasks. With AI, you can reduce costs, minimize waste, and ensure that the right products are always available, creating a smoother, more efficient shopping experience both in-store and online.

• Internet of Things (IoT)

IoT enables the connected store concept by linking devices and systems to provide real-time data on inventory, customer behavior, and store operations. Smart shelves, beacons, and sensors can enhance customer engagement, streamline operations, and personalize the shopping experience, both physically and digitally.

• Augmented Reality (AR) 

AR allows you to create immersive shopping experiences by letting customers visualize products in their own space or try on virtual items. This customer engagement technology bridges the gap between online and offline shopping, enhancing the experience and helping shoppers make more confident purchase decisions without stepping into a store.

• Rich Communication Services (RCS)

An upgrade to traditional SMS, offering richer media content like images, videos, and interactive buttons directly in the messaging app. RCS Business Messaging allows you to send more engaging and visually appealing messages directly to customers’ phones.

How MessageFlow drives value for retail with cross channel communication

What constitutes a good retail tech stack will vary from one business to another. Its components will depend on the specific niche and goals of your organization. That said, no stack will be complete without a cross-channel messaging platform. Such a solution addresses the fundamental need every company or brand has to stay in touch with its customers and reach them with a variety of marketing and transactional communication. At MessageFlow, we specialize in exactly this area, having already worked with supermarket chains and clothing retailers, among others.

Customer engagement technology at your service

MessageFlow is a comprehensive cross-channel platform designed to meet the communication needs of a modern retail business. Our solution:

• Allows you to run ISO- and GDPR-compliant, secure messaging campaigns, protecting your and your customers’ data. 
• Helps you maintain brand cohesion and deliver unified customer experience thanks to multi-channel campaigns.
• Lets you manage all your communication from one place, either via the user panel or a RESTful API integration.
• Integrates with other systems and data sources you may have in order to boost the efficiency of your campaigns by utilizing detailed customer information.
• Is environmentally-conscious. Here’s how cross channel communication is contributing to sustainability.
• Offers 99% message deliverability rate across multiple channels (Email, SMS, Mobile  Push)
• Boast a maximum throughput of 6 million messages an hour, allowing for easily scalable, on-time delivery of your campaigns.
• Is ready for Rich Communication Services (RCS) – the more advanced and interactive successor to SMS, perfect for the retail industry.