Jamshed Mughal,
SVP of Global Customer Solutions,  Marigold

Digital transformation is no longer optional—it’s essential for delivering seamless, personalized shopping experiences that today’s consumers demand.

In today’s fast-evolving retail landscape, adapting to modern technology is no longer optional—it’s essential. Retailers relying on outdated, legacy systems often fall behind in delivering the seamless, personalized shopping experiences that today’s consumers expect.

Digital transformation, from legacy systems to intelligent, unified retail platforms, is the key to staying competitive. This step-by-step guide offers a roadmap for retailers looking to make that transition, drawing on real-world examples and practical strategies to move towards a more connected and data-driven retail future.

Before embarking on any digital transformation, retailers must first assess their current systems and identify the specific pain points holding them back. According to a McKinsey report, 75% of retail executives say outdated, fragmented systems hamper their ability to deliver a smooth customer experience across channels.

For instance, a fashion retailer may discover that their inventory system is not synchronized between online and physical stores, leading to stockouts that frustrate customers and result in lost sales. Similarly, a grocery store might face delays in applying loyalty rewards because its point-of-sale (POS) system doesn’t integrate with its loyalty platform, leading to inconsistent customer experiences.

The first critical step is identifying these challenges and prioritizing areas for improvement, focusing on systems that will have the most impact on enhancing customer interactions.

Many retailers use multiple disconnected tools across different functions—inventory, marketing, sales, and customer management. This approach often results in inefficiencies, duplicated efforts, and fragmented data, making it harder to deliver consistent, personalized experiences to customers. By consolidating these tools into a unified system, retailers can streamline operations, improve data accuracy, and reduce costs.

For example, a home goods store managing inventory, marketing campaigns, and online sales with separate systems could benefit from integrating these platforms into a seamless system. This consolidation would ensure that customer behavior, inventory data, and marketing campaigns are synchronized across all channels, reducing errors and delivering a more cohesive customer experience.

Finding a single solution that best fits a retailer’s many specific needs for inventory, customer management, sales, and marketing can be much like finding a needle in a haystack. Instead, the best way for retailers to activate a single, unified system is to leverage platforms that integrate with existing systems.

Nearly 80% of consumers state they’re likely to engage with a personalized email tailored to their interests, so delivering personalized shopping experiences is a must. To meet these expectations, retailers must leverage customer data to deliver tailored recommendations, offers, and interactions. The right data can empower retailers to deliver highly personalized experiences that drive customer loyalty and increase sales.

There are several types of data retailers should focus on:

• Zero-party data: Information shared directly by customers, such as their preferences or purchase intentions.
• First-party data: Data derived from customer interactions with your brand, such as purchase history or online browsing behavior.
• Third-party data: Broader, less personalized data from external sources.

For example, a beauty retailer can use zero-party data collected through customer surveys to offer personalized product recommendations or special birthday gifts. Similarly, a footwear store might analyze first-party data to recommend complementary products, such as socks or shoe care kits, after a customer makes a purchase.

Retailers that leverage tools that simplify data consolidation and analysis are better equipped to track customer preferences across multiple channels.

Retailers must invest in technology that can adapt to changing customer demands.

For example, with 85% of consumers expecting seamless shopping experiences across digital and physical platforms, according to the National Retail Federation, omnichannel retail is a growing demand.

A scalable system, such as a cloud-based platform, allows retailers to grow and adapt without requiring significant re-investment in new technology. For instance, a grocery chain might implement a cloud-based inventory management system that tracks real-time stock levels across both online and in-store channels. This ensures customers can always see what’s available, regardless of where they shop.

With 37% of consumers stating that they’re more likely to participate in loyalty programs this year compared to last, loyalty programs are another growing trend for retailers to consider. Marketing platforms should offer flexibility to create customized rewards programs that scale as the business grows. For example, a pet store could offer points for both online and in-store purchases, creating a consistent experience across platforms and enhancing customer loyalty.

About Marigold

Marigold is the messaging and loyalty platform dedicated to helping companies find  their people, really get to know them, and turn them into superfans. From email marketing and in-app messaging to loyalty programs, referral programs, gamification, and personalization, Marigold provides a full range of solutions that support every stage of the customer lifecycle, helping brands cultivate relationships that drive business growth.

Today, bringing together Campaign Monitor, Cheetah Digital, Emma, Liveclicker, Sailthru, Selligent, and Vuture under one banner, Marigold helps 40,000 brands deliver ultra-personalized customer experiences at scale. Find out more