As online shopping options expand rapidly, delivering frictionless digital journeys across all channels has become essential for retailers to remain competitive. In addition, younger generations of employees and customers have higher expectations from retailers, viewing seamless digital experiences not merely as a competitive edge but as a fundamental determinant of success. To gain a deeper perspective, we spoke with Ramzi Bsaibes, Regional Sales Director, Gulf Region, Riverbed Technology, who shares insights from the company’s latest Global Digital Employee Experience (DEX) Survey. This survey sheds light on the pivotal role of unified observability in navigating the evolving digital landscape.
Provide an overview of the key findings from the Riverbed Global Digital Employee Experience Survey specific to the retail industry.
The Riverbed study emphasises the growing importance of seamless and exceptional digital experiences (DEX) for retailers, as online shopping choices continue to expand. A significant number of respondents (96 percent) consider delivering a seamless DEX as essential, with 59 percent emphasising its critical importance for staying competitive. This extends beyond customers, as 95 percent of retail decision-makers believe in prioritising the needs of employees by providing advanced DEX, especially with the entrance of new generations into the labour market.
Furthermore, the study indicates a shift in responsibility for driving business innovation towards IT, as 93 percent of retail business decision makers and IT decision makers agree that IT plays a more significant role now compared to three years ago. The leaders intend to focus their IT spending on unified observability solutions, with 92 percent advocating for greater investment in these solutions to provide actionable insights for improving both employee and customer digital experiences.
How do you see the role of DEX evolving in the retail sector as new generations of employees enter the workforce?
In the retail sector, Millennials and Gen Z employees make up a larger portion of the workforce than in other industries. These are digital natives who are used to exceptional experiences from the apps they use in their personal lives. And now, coming into the retail workforce, they expect the same level of digital services from their employers.
Failure to meet their expectations can have dire consequences. In fact, 61 percent of respondents surveyed said there would be a disruptive/reputational impact on their company if the digital experience expectations of younger generations are not met. Concerningly, ITDMs and BDMs from the retail sector say that 50 percent of younger generation employees would consider leaving the company if they did not have a seamless digital experience. Retailers, who are struggling with persistent labour shortages, cannot afford to alienate employees, especially during the busy holiday season and when shoppers have more choices than ever.
The survey highlights that a majority of respondents believe there would be a disruptive impact if the digital experience expectations of younger generations are not met. What is the impact and how are retailers adapting their strategies to meet the expectations?
The immediate consequence of poor Digital Experience (DEX) for retailers is staff attrition, which can negatively impact in-store and backend operations, affecting the ability to meet customer needs. The less apparent but crucial cost involves lost opportunities, as brand loyalty becomes fragile in the face of easily accessible competition. To impress customers, retailers must provide hyper-personalised experiences, achievable through empowered staff using the right digital tools. Examples include in-store personnel accessing customer journeys on tablets for relevant suggestions and customer service agents collaborating efficiently for quick issue resolution. The Middle East is witnessing the rise of digitally-driven retail concepts like phygital stores, indicating an adaptation to new technologies. However, for retailers to maximise the potential of these tech investments, it’s essential to ensure exceptional experiences for both customers and employees.
How do you see the role of Chief Information Officers (CIOs) evolving in retail organisations?
In the retail sector, a significant majority (85 percent) of IT decision makers (ITDMs) and business decision makers (BDMs) recognise the growing importance of IT within the C-Suite. This acknowledgement is driven by the challenges of supply chain disruptions, the integration of AI and advanced algorithms, and the shift towards cashless and no-contact transactions. An overwhelming 84 percent of retail respondents state that a member of the IT team now has a seat at the C-suite table.
As IT leaders gain prominence, particularly Chief Information Officers (CIOs), there is a transition from being technology leaders to becoming business enablers. CIOs are now tasked with understanding the business’s ambitions, identifying technologies that advance organisational goals, and ensuring that implemented systems meet employee expectations. The study highlights that IT leaders are turning to observability tools, with 98 percent agreeing that unified observability is crucial (58 percent say critically important) to stay competitive and deliver a seamless Digital Experience (DEX).
How can retailers navigate staffing concerns and ensure they have the right expertise to implement advanced technologies?
As CIOs roll out the advanced technologies needed to ensure their organisation stays ahead, they’re being hamstrung by their own staffing concerns. 39 percent of those surveyed believe they are understaffed, and while 38 percent say they have enough employees, they believe those employees lack key skills to do their jobs.
With the region already facing an IT skills shortage, rather than focusing on hiring, retailers would be well served to enhance skill sets within their ranks. It is therefore encouraging to see that 83 percent of Retail leaders from the survey audience have set aside a budget to retrain IT staff.
What trends do you anticipate in the retail industry, especially concerning the intersection of technology and customer experience?
Research shows that in 2023, the omnichannel retail experience has been in high demand. Today’s shoppers skate between sites, apps, and physical stores to make their purchases. This has made IT more complex for retailers as they scramble to provide the same premier service across every touchpoint.
In the year ahead, we must expect further blending of physical and digital experiences for shoppers. This will make it essential for retailers to invest in developing their ability to analyse the entire user journey, optimise process flows, and personalise experiences. Those that do this will be able to meet and exceed customer expectations, leading to improved brand loyalty and higher customer retention rates.
