1. Is AI cannibalizing the art of retail?
Adopting today’s sophisticated technology, specifically artificial intelligence, was a consistent theme throughout the conference, particularly in addressing how technology can deliver a superior customer experience and enhance consumer engagement. However, even as brands embrace new technologies, they must not forget that serving the customer requires a human touch.
AI is transforming how retail works from process efficiencies to creative applications that will increasingly impact customer experience. For example, AI can help associates lower their time spent on routine tasks, and give them the ability to focus on the needs of the customer. As we heard from many, happier associates = happier customers = better results.
Now is the time for innovative leaders who grasp the intricacies of AI while leveraging their industry knowledge and expertise.
But while AI can help you be more effective, it does not determine how you engage with your customer and who you are as a brand. Even for brands using AI tools to gain a better understanding of trends, enhance personalization or create the perfect design, AI must start with something to replicate — generative AI cannot create from scratch. Consumers today, especially younger ones, are increasingly savvy around recognizing AI, and will reject brands that feel inauthentic and impersonal.
What does this mean for leadership?
The art of retail is not dead. Brands still need senior leaders with sound judgment and a deep understanding of the customer. Now is the time for innovative leaders who grasp the intricacies of AI while leveraging their industry knowledge and expertise. Today’s leaders can simultaneously explore and leverage emerging technologies without sacrificing retail fundamentals. Additionally, C-suite leaders should foster a culture of learning so that their teams are not afraid to innovate, fail often and fail fast to stay ahead of the competition.
2. Does your customer have a voice?
Many Shoptalk presenters talked about customers: what customers want and how to reach them. It’s clear that today’s consumers do not want to be told what the trends are, what to buy or where to shop. For the first time, customers are truly dictating trends, and are looking for brands that can meet them where they are via influencers and multi-brand collaborations. While we’ve talked about customer centricity for years, brands need to listen and develop an authentic customer-first approach to be successful.
Additionally, personalization is under pressure as it is increasingly tied to customer confidence. Many speakers discussed privacy and data concerns with the consensus being, “If you can’t explain to customers why they should provide their data to you, then you shouldn’t be asking for it.” The nature of loyalty programs is also changing. Customers don’t just want a discount or a free cup of coffee in return for their information, they are demanding access to exclusive products, early launches, product education and more. Building virality into your product is a crucial source of growth that builds engagement and long-term loyalty. Finally, the marriage of culture and product was part of almost every conversation. From the billion-dollar success of Mattel’s Barbie movie to Crocs’ Taco Bell collaboration, cultural connectivity captures consumers.
Companies will increasingly seek leaders with an ability to listen to the customer and demonstrate strong collaboration and influencing skills, both externally and internally.
What does this mean for leadership?
It’s easy to understand why roles adjacent to (or in replacement of) the chief marketing officer have emerged in recent years, with words like growth, revenue and customer in their titles. In particular, leaders who understand how customers engage with brands are critical for capturing market share. We predict that companies will increasingly seek leaders with an ability to listen to the customer and demonstrate collaboration and influencing skills, both externally and internally, to thrive in the modern era.
3. Is your organization designed to keep up with customer desires at the pace they now expect?
Constant change is the new normal, but simply knowing that is not enough. Your organization must be agile enough to react to trends quickly and bring products to market faster. Long gone are the days of the 12-month product calendar. Retailers need to talk in days-to-market to respond to ever-changing consumer dynamics.
Retailers need to cultivate corporate cultures that are inclusive and accepting of new talent.
As speed-to-market continues to grow, top leaders must ask several questions: Do you have the right technology in place to meet customer needs quickly? Are your supply chains agile and transparent enough to adapt? Are you utilizing the data available to you from customer touchpoints? Can your technology, marketing and supply chain teams work in lockstep? Getting this right is better for the customer and for employee engagement, and is key to surviving as the industry continues to evolve. Meanwhile, brands must operate with constant communication and candor, especially with younger generations. Consumers demand brand authenticity at every touchpoint, not just in the quality of the products they are creating but throughout the product cycle as well.
What does this mean for leadership?
Agility is key. Your top team, your organizational tools and your corporate culture must be in peak performance to meet modern demands. With so much data available and so many technology and supply chain solutions to consider, prioritization and focus are critical attributes for leaders. What works for one company likely is not the right formula for another. Additionally, while agility is critical, change does not happen overnight, therefore leaders must find ways keep the team engaged by celebrating the wins and learning from the defeats, all with an eye towards continuous improvement.
4. Are tomorrow’s retail leaders working outside retail today?
As the retail business grows more sophisticated and expands into new business models — marketplaces, retail media networks, film studios, technology solutions that can be sold to others, and much more — retailers need to think about more than just commerce. Creating content, monetizing data and embracing new technology tools are table stakes for survival.
What does this mean for leadership?
While many future leaders will be home-grown with a deep understanding of retail, it’s also likely the industry will need to look to other sectors to find the expertise needed to evolve their businesses. Attracting those leaders is only half the battle — retailers need to cultivate corporate cultures that are inclusive and accepting of new talent, and maintain both an open mind when considering a variety of opinions and patience with outside leaders who may not have grown up “on the shop floor.”