For a retailer, these are the best of times; these are the worst of times! These are times of plenty as far as the pool of customers is concerned; these are times of scarcity as far as the customers’ loyalty is concerned! The same technology and channels that empower the retailers have also empowered the customers. And when you think about it, most customers are also retailers of some product or service. Thus they are aware of standards expected. Thus, any retailer today faces at least 8 challenges:

 The customer is pampered for choices. Gone are the times when he had to choose between a handful of brands. Today, there are dozens and even hundreds of brands even in the luxury sector which was supposed to be exclusive in every way.

1. Every customer is more knowledgeable and she compares each little feature, advantage and disadvantage of the product/service to assess the value for money it offers before making a purchase.
2. Armed with greater knowledge and greater choices, the customer takes much longer to become loyal to a brand. Every retailer has to invest much more resources to get a conversion and even more resources to ensure that the customer returns for repeat purchases.
3. The traditional hierarchy of a manufacturer selling to wholesalers who in turn sell to retailers is fast breaking down. Realising the potential of brand-building and retail sales, many companies are also launching their own individual retail channels. Thus, the competition is hotting up and it is only bound to get more intense.
4. The digital disruption has hit hard at the retail industry. Today, it is no longer good enough to have a strong physical presence providing a wonderful customer experience. The lines between the real and virtual worlds have almost smudged and the customer seeks a multi-channel experience while purchasing. And there too, the customer demands the same experience and treatment with no difference between the virtual store and the brick and mortar store.
5. For a retailer, it is no longer sufficient to be able to provide the highest quality of goods or services. The demanding customer seeks experiences today. Thus, the retailer faces the challenge to gather, integrate, analyse and intelligently use customer data to constantly innovate personalised and customised experiences. This is what makes the purchase process memorable.
6. With the explosion of social and digital media and technologies, retailers face the dilemma of having to choose and pick the optimal channels for communication and the best technologies for results.
7. Leveraging customer data brings immense benefits for retailers. But it is a double-edged sword opening up a pandora’s box of security concerns. The slightest error could potentially lead to great damages to the customer and so, badle affect the retailer too.

 If failures are stepping stones, challenges are escalators towards greater success! When the retailer puts in efforts to achieve seamless multi-channel experience, customised offerings and genuine customer service, there is bound to be success that builds customer loyalty which lasts for years.