How Technology Is Helping SMBs Disrupt The Retail Industry

As the retail industry rapidly consolidates, and retail giants like Wal-Mart, Target and Amazon dominate market share across the board, small to medium-sized retailers need to act now. These smaller retailers must solidify digital customer relationships and build new margin-rich revenue streams. While today’s retailers understand the need for digital solutions to compete against big box retailers, they have historically been limited by their lack of financial and engineering resources.

Today we discuss how competition and technical complexity make it harder than ever for brick-and-mortar retailers to stand out to consumers with Sean Turner, chief technology officer and co-founder of leading grocery tech, Swiftly. Swiftly empowers by allowing small-to-medium sized brick-and-mortar retailers access to the same digital retail tools as Walmart, Target, and Amazon.

Gary Drenik: What are some of the tools big brands have used that have set them so far apart from the little guy? How have these tools catapulted their success and how can the same tools be used for smaller grocers and brands? How is Swiftly enabling smaller retailers access to these tools?

Sean Turner: Big retail brands have been at an advantage for years because of their large budgets, extensive engineering resources and large customer bases. Because of this, they’ve been able to build holistic, connected retail media networks that drive a positive margin impact to offset other areas of their business. They’ve implemented on- and off-platform tools that build advertiser relationships and seamless online and in-store experiences that attract customers. According to a recent Prosper Insights & Analytics Survey, over 29% of consumers are doing comparative shopping online and another 20% are doing the same but via ad circulars and newspapers. By creating a true omnichannel presence that’s complemented by strong loyalty and personalization engines, they’ve been able to attract and retain shoppers, resulting in more store visits and larger basket size.

To succeed in this new retail technology reality, SMBs should take the steps to provide an omnichannel experience that connects with shoppers on their terms and provides advertisers with the opportunity to target their most profitable customers. In fact, smaller retailers now have an amazing opportunity to leverage their nimbleness and ability to move quickly to launch the digital retail tools they need to compete in today’s market.

This is where Swiftly bridges the gap. We’ve built tech solutions that SMBs can integrate quickly, with little strain on their internal team or their budget. Our partners enjoy the same features and the same level of functionality that the big retailers have been leveraging for years, leveling the playing field, and making it easier to hold their ground as the industry continues to evolve.

Drenik: What technology and digital solutions are having the most profound impact on SMB retailers? Why?

Turner: In today’s retail climate, strong personalization is—hands down—the best way to attract and retain customer loyalty, which is one of the hottest commodities in today’s market. In order to create programs that deliver that level of one-on-one communication, smart retailers of all sizes are implementing tools that leverage their first-party data, which then fuels their loyalty and rewards programs.

Shoppers are becoming incredibly savvy in their use of technology and will shift their loyalty to retailers who offer them a personalized, budget-friendly experience. Once a retailer can capture a strong customer base, brand partnerships, advertising dollars and retail media revenue follow, making a very profound impact on their long-term success.

Drenik: Technology has come a long way, how are SMBs keeping up with evolving technology and what is the next big thing in tech for these retailers?

Turner: The reality is that most SMBs are just now starting to take all the steps required to keep up. Historically, they’ve been forced to piecemeal their tech solutions, focusing on one or two features or tools, which impedes their ability to scale and grow long term. In some cases, they’ve attempted to bring in tech partners to create one-off solutions that complement their in-house endeavors, ultimately creating a disjointed platform with siloed features that can’t communicate with each other. That’s starting to change, however, which is exciting to see.

As for the next big thing? I’d say it’s how SMBs approach their technology. The key is to think about retail technology more holistically, laying the framework for an omnichannel approach with first-party data that feeds loyalty and personalization. This, along with building a retail media presence so they can take in more profitable, margin-rich revenue, will better position them for success in the future.

Drenik: According to a recent Prosper Insights & Analytics Survey, 33% of shoppers have become more budget conscious. How does this impact consumers? Why is diversifying the retail marketplace so important? What are the impacts to giant retail monopoly?

Turner: There are a few reasons that diversifying the marketplace is so important, not the least of which is the simple fact that it’s important for customers to have options when it comes to where they shop. The more we see giant retail consolidation and the resulting monopoly, the greater the limitations to shoppers from both budget and convenience standpoints.

The big picture would show a domino effect of higher prices and limited inventory. Right now, there’s a huge opportunity for SMBs to double down in an attempt to keep the marketplace as diverse as possible. The first step to that is offering shoppers the same benefits they enjoy with big retail—i.e., product offerings, deals and savings. After that, it will be about expanding their technology offerings to build and grow a healthy customer base while nurturing the advertiser relationships that will drive the retailer’s bottom line.

Drenik: What opportunity is there for SMB retailers? How is Swiftly helping SMB retailers reach their potential and own their fair market share percentage?

Turner: Until recently, the whole digital and retail media space has been untouched from an SMB perspective. As stated previously, they’ve picked one feature or tool to focus on but haven’t tied it all together to create an omnichannel, networked platform. Once there’s a broader network effect where SMBs work together, these retailers will really start to reap the benefits of the growing retail media market.

At Swiftly, we recognized early the benefits of helping SMB retailers—both to the business owners and to their advertising partners. We offer unique, holistic, low-cost tools that were developed specifically to serve business and customer needs. Our solutions offer quick-to-market integrations that let SMBs generate new margin-rich revenue, scale effectively and grow a loyal customer base.

Drenik: According to a recent Prosper Insights & Analytics survey, 21% of consumers are concerned about national security issues. What are some of the ways smaller retailers can use data safely to impact their customer base? What are the most common use cases you see from your retailers?

Turner: Data is a very hot topic in our industry as cookies and third-party data continue to fade in the wake of consumer privacy laws. Retailers of all sizes should focus on leveraging their first-party data across all aspects of their business. Once they do that, the sky’s the limit.

First and foremost—as discussed earlier—they can offer a more personalized, targeted experience that builds customer loyalty and grows their user base. Once that customer base starts flourishing, the brands and revenue follow. With the strength of those partnerships in place, retailers will enjoy the ability to launch products faster, to build a robust retail media network and inform day-to-day operations.

Our most common uses cases reflect how all the above can influence a retailer’s long-term success… if they’re done correctly. The importance of strong customer loyalty and brand partnerships will never go away, so that data will always be necessary. Add to that the impact that data can have on inventory management, in-store pricing, and campaign targeting, and it’s clear that, while customers are at the heart of our industry, the numbers are what keeps it beating.

Drenik: Thank you, Sean, for diving into the world of small business retail strategies and how technology is reshaping the space to allow for a move even playing field amongst giant retailers.