Want to know how to implement a culture of innovation in retail? So, read this text until the end because you will see simple and efficient ideas to put into practice right now!
In general, the culture of innovation in retail is the only mean that allows the company to reinvent itself according to the new needs of the market and, consequently, not to become outdated over time.
When it comes to the retail sector, innovation is an even greater challenge, since this is a very competitive branch and, therefore, requires constant transformations.
In this field, it is possible to observe the frequent emergence of new competitors, the change in consumer behavior and the greater impact of inflation and price variations, which require the company to adopt new solutions to positively overcome these challenges.
With that in mind, Monitora prepared this material to show how to implement a culture of innovation in retail in a practical and effective way. So, if this is a topic that raises your doubts, continue reading to check it out. Come on!
What is the culture of innovation in retail?
The term “innovation” refers to any creation or change in which the objective is to recreate, renew and introduce new things.
Therefore, within companies, innovation is associated with the change or implementation of new services, products and even technologies, with the purpose of generating even more value for the business.
That said, the culture of innovation is the constant search for new solutions and results. Then, during the process, new tools, methods and technologies are used, which will lead to a certain goal.
Therefore, for the culture of innovation in retail to be in fact positive and prosperous, it is necessary to make it a philosophy of the company in the segment, so that it is understood and practiced by all teams.
For this reason, this culture must contain the company’s principles, concepts, internal rules, values and mission. In this way, all employees will be able to bring new ideas, as well as actively collaborate with the constant development of the business.
A great example is that, currently, we are experiencing the greatest technological era, where online sales are being carried out more and more, since the public is even more present in the digital world.
Therefore, it is necessary for retail companies to implement technological innovations to optimize their customers’ shopping experience and, thus, remain in evidence in the market.
What are the benefits of a culture of innovation in retail?
Undoubtedly, the culture of innovation in retail brings many benefits to everyone: the company, customers and employees.
According to a study carried out by the Institute of Applied Economic Research (IPEA), investment in innovation is one of the most expressive components when it comes to competitiveness among the main companies in Brazil.
The survey was carried out with 132 companies and, of these, 86% consider that the culture of innovation in operations, solutions and internal processes is what will correspond to the greatest highlight of corporations in the future.
Thus, among all the benefits of the culture of innovation, what draws the most attention is the stimulus to retail growth, whether through greater visibility before the competition, market attractiveness or improvement of processes and solutions.
Check below for more details on the advantages of the culture of innovation in retail!
Increased productivity
With the culture of innovation and the implementation of new technologies and processes, teams can start doing more in less time. In this way, productivity inside companies can increase.
However, this does not mean that employees will work harder. On the contrary, when applying innovations in the business, the employees’ effort can decrease, which will make them more productive.
Brand differentiation
Certainly, there is no better advantage for retailers than brand differentiation and greater prominence against competitors. After all, customers start to prefer their services and/or products, as well as it tends to bring more customers through referrals.
In addition, by having greater visibility, consumers begin to trust the quality of their products and services, taking into account the cost-benefit and not just the price.
Not to mention that the company is also starting to be sought after for partnerships and to serve as an example and model for the market.
Problem solving
Every retail business encounters challenges from time to time, and some of them can be very difficult to solve.
However, the culture of innovation allows them to be resolved more easily and quickly. Since it pushes teams to think innovatively and “outside the box”, instead of offering just a basic solution.
More motivated and engaged team
Retail teams that invest in a culture of innovation tend to be more engaged and motivated, as they are constantly updating and looking for news.
With this, employees do not get bored with their tasks, as they are always in touch with new ideas, processes and applications.
Optimization of processes and solutions
Adopting innovation as a crucial factor is important for optimizing processes and solutions. This is because the company starts to evaluate and review its actions with more constancy and intellection, which generates more effective and innovative results. Just as problem solving happens more quickly.
Better relationship with customers
With services and products being delivered with more quality and innovation, it is natural for the public to start looking at the retail company with more interest, which allows new customers to feel attracted to its business.
Therefore, the culture of innovation in retail is also essential to generate a positive relationship between the company and the consumer.
Cost reduction
Last but not least, we cannot fail to mention the importance of a culture of innovation for cost reduction in retail.
After all, with increased productivity, optimization of processes and solutions, timely resolution of problems and better customer relationships, the company now has lower costs, whether direct, indirect, fixed or variable.
Why is the culture of innovation so important in retail?
Retail is one of the sectors that most demand constant transformation, due to its high competitiveness. Nowadays, the public has a frequent and direct relationship with technology, which makes consumers have greater demands and expectations.
Therefore, the greater the demands of customers, the more the company must evolve with its processes and technologies.
A prime example of this is the omnichannel experience. It is a strategy that encompasses several communication channels so that the public has a unique and unprecedented experience with unified channels, where the intention is to make customers have an excellent quality of service when buying products or services online.
Just imagine a person passing by a store and seeing an interesting appliance. When they get home, they buy through the app or website so that the device arrives at home. It is this type of experience that the customer wants to have, because technology has made them understand that they can have it!
Therefore, we can say that the culture of innovation is the only way to deliver the shopping experience that the customer wants, in a way that attracts and retains them.
How to implement a culture of innovation in retail?
First of all, it is important to highlight that the culture of innovation in retail requires that the experience is democratic. That is, that all employees feel comfortable expressing their ideas, and not that this is a responsibility of only one position or sector.
Therefore, it is essential that from cashiers to managers, everyone is able to suggest new solutions, products, services, tools, ideas or technologies for the company.
And most importantly: this culture must be treated as a business philosophy, where all employees must act in favor of the same mission, principle, values and objectives of the company.
Once that’s done, it’s time to follow the next basic steps!
1 – Identify the necessary changes
To begin with, it is very important for the retail company to identify the changes it needs to make, according to the business objective, the type of culture it wants to develop and what actions must be taken to achieve the final purpose.
At this stage, it is worth bringing together all the employees so that they can share their ideas and suggestions, which will make it easier for the leaders to identify the points to be improved.
2 – Stay open to innovations
It’s no use listening to the teams’ suggestions and ideas if the leaders are not fully open to innovations. Unfortunately, this is still a big mistake for many business organizations, which hinders business growth in the face of the new and constant demands of the current market.
Therefore, if the company wants to implement a culture of innovation in retail, it is crucial to remain open to changes and new knowledge.
3 – Anticipate trends
One of the biggest mistakes retailers make is to stay behind trends all the time instead of anticipating them. After all, it only takes one competitor to do this for you to lose a great chance to be in evidence in the market.
Therefore, you should always be consuming content that addresses trends in retail, as well as being aware of new technologies and how to apply them in your business, observing news from other countries and analyzing the behavior of the younger public.
4 – Don’t be afraid to invest in new technologies
Retail and technology have never had such an undeniable relationship! For example, a good and simple management system can already bring countless benefits to the store, due to commercial automation.
So, don’t be afraid to invest in new technologies, as they are constantly being updated to make the day-to-day business even easier.
Big Data and Business Intelligence, for example, allow companies to know the public in depth, in order to create a unique, innovative and personalized shopping experience. All this from the analysis of information in favor of the company’s strategic objectives.
In the past, only large industries used these tools, but today they are available to any company. Being widely used, including in the online world.
In the near future, it is expected that they can also be easily applied in the offline world to identify, for example, the length of stay and other general behaviors of customers entering the store.
5 – Test innovations in marketing
Innovations in marketing must be constant and in the most appropriate way to attract the type of customers you want. For example, if you sell products/services to a younger audience, it may be worth using TikTok and/or Instagram to attract consumers.
6 – Apply overdelivering
Finally, overdelivering is one of the practices that most help to retain customers. It means “to deliver more than expected”. For example, delivering a gift together with the product/service that the consumer purchased.
In this way, it is possible to favor user satisfaction, which will help in building the relationship with the customer.
3 customer profiles and how each works in innovation
Of course, customers are also directly affected by the culture of innovation in retail. For this reason, it is important for the company to know the profiles of consumers so that it knows how to relate to each one of them.
Below, you will find some details about 3 customer profiles and how each of them works in innovation. Check out!
Traditional
Traditional consumers are those who need a good assessment from someone they trust before adopting a technology. For example, it is that person who still insists on buying in person at the store, even if they have to queue or pay more.
Therefore, in this case, the retail company that uses the culture of innovation must convey security and guide its customers through data. That is, everything needs to be measured and shared, including customer reactions regarding innovations and new technologies launched.
Innovative
Although it is the smallest part of the market, the innovative customer is the one who is not afraid to dare and try new things. Therefore, if you develop a technological and very innovative solution for them, there are great chances that they will buy – and recommend.
Early adopters
Finally, the early adopter customer is the one who likes to innovate, but needs detailed research or a strong reference before acquiring the novelty. That is, they like to have a lot of background on the product/service before buying.
In this case, it is valid, for example, for the company to create a blog to bring daily posts with themes that address the safety and effectiveness of its technological solutions and, thus, gradually gain the trust of the audience.
Main mistakes that many retailers make in the innovation process
One of the main mistakes that many companies make in the innovation process is when managers fail to open up to new ideas, especially those that are more creative and out of the ordinary.
What often happens is that when employees try to expose their ideas, whether they are good or not, they are immediately devalued. Where, in many cases, some of these proposals could start a good journey towards innovation.
Consequently, what was to generate greater results for the company, ends up becoming less prosperous and monotonous. Therefore, it is essential that managers know how to receive the ideas presented, even if they are bad.
After all, a bad idea is not always a sign that it cannot be used. On the contrary, sometimes it can be polished and arrive at an excellent innovation process.
Conclusion
As we have seen so far, the culture of innovation brings countless possibilities to retail. But, it is essential to have clear objectives so that it brings the desired results.
After all, innovation without purpose is not innovation, and can make companies spend a lot of money unnecessarily. Therefore, it is crucial that retailers plan the innovation process properly and pay attention to the delivery of results by the teams.
And if you want to implement a culture of innovation in your company without making a mistake, Monitora is the solution you need! Here, you will find specialists passionate about delivering high quality technological solutions.
After all, Monitora is a digital solutions company, which has the best specialists in the market in helping companies to become digital through methodology, processes and software. We take care of the entire technology development process, such as:
- Service design;
- Requirements engineering;
- Software design;
- Implementation;
- Quality control;
- Deployment and maintenance.
All this to help our customers stay focused on their business strategies. So if you want to innovate in your company in a more targeted and appropriate way for your audience, talk to an expert right now!
