Please read the assignment description and the rubric. Then review and feedback for my assignment submission. Do I need to adjust ?

This is rubric

Case Study Rubric Criteria Requirements Weight Score Distinguished/ Proficient/Good Basic/Fair Non Excellent Performance/Poor Identification of the 3-5 issues and/or 10% Identifies and Identifies and Identifies and Identifies and main issues and/or problems. understands all the understands most of understands some of understands few of problems. main issues in the case the main issues in the the main issues in the the main issues in the study. case study. case study. case study. Literature research Uses high impact 15% Excellent research Good research and Limited research and | Incomplete research sources & review. with clearly documented associations between and associations documented associations between the problems or between the problems associations between problems or questions questions and key or questions and key problems or questions and key course course concepts and course concepts and and key course concepts and some (2 little (1 or more) use no use of concepts and good (3 or more) use of of corroborating corroborating or more) use of corroborating sources. sources. sources. corroborating sources. Analysis of the key All issues must be 25% Insightful and thorough Insightful and thorough Insightful and Incomplete analysis issues. analyzed. analysis of all the key analysis of most of the thorough analysis of of the key issues. issues. key issues. some of the key issues Alternative solutions Provide method of 20% Alternatives cover all Alternatives cover Alternatives cover Incomplete analys and/or options comparison between the key issues with most of the key issues some of the key of alternatives with alternatives method to evaluate all with method to issues with method to no evaluation method. equally. evaluate. evaluate. Observations and/or Include short-term 20% Well-reasoned Solid, well-thought out Shallow observations Superficial recommendations on and long-term logical, relevant observations and and observations and effective solutions. recommendations; observations and recommendations on recommendations on recommendations on Included should be recommendations on effective solutions to effective solutions to effective solutions to realistic time frames, effective solutions to many of the some of the a few of the designation of roles most of the problems/issues. problems/issues problems/issues. and responsibilities problems/issues. of all stakeholders and an appropriate evaluation program. Writing Includes overall 10% Writing is totally free There are few spelling There are several There are many Skills/Professional composition, of grammar and or grammatical errors. spelling 01 spelling errors and Presentation structure, grammar. spelling errors. Clear, Most ideas are clearly grammatical errors. grammatical spelling, and concise and creative presented and Some ideas are mistakes. Ideas are punctuation. presentation of ideas references are used. clearly presented. hard to follow. and properly References are References are not referenced. sporadic or not used. used.JITTC Teaching Case ournal of Information Technology Omnichannel retailing: Digital Teaching Cases 2021, Vol. 1 1 (2) 122-126 transformation of a medium-sized Association for Information Technology Trust 2021 Article reuse guidelines retailer sagepub.com/journals-permissions DOI: 10.1 177/2043886920959803 Journals.sagepub.com/jitt OSAGE Gultekin Cakir (D, Rehan Iftikhar, Artem Bielozorov, Zohreh Pourzolfaghar and Markus Helfert Abstract Most retailers are currently undergoing a major transformation in the process of becoming omnichannel retailers. This case addresses the challenges of an Irish company in the transition from an offline focused retailer to an omnichannel company. Building on its strong expertise in traditional offline retail, the company is aiming to establish itself as an omnichannel retailer that allows for increasing its customer base in Ireland and overseas. The case describes actual challenges along the journey, including the strategic, operational, and technological challenges. It provides an opportunity for students to discuss and understand the practical aspects of the retail transformation process and the linkage between technology and business strategy. The case enables discussions on the multiple aspects in the process of transformation toward omnichannel retail and promotes the development of innovative solutions for transferring customer experience provided in offline retail to online platforms. Keywords Omnichannel retailing, digital retail, digital strategy, channel integration, in-store experience, customer experience, COVID-19 Introduction experience requires the retailer to coordinate and integrate all existing channels along various perspectives (Bijmolt The ongoing and dynamic changes in the retailing industry et al., 2019; Rigby, 2011). Especially for small- and can be considered as a disruptive development and a trans- medium-sized retailers, this poses an extremely challeng formation process into "Digital Retail," the combination of ing task. On top of that, the dramatic impact of the COVID- traditional retailing with digital technologies (Brynjolfsson 19 pandemic on the retailing sector revealed the et al., 2013; Hagberg et al., 2016; Rigby, 2011; Verhoef vulnerability of many retailers dealing with this exceptional et al., 2015). Consumers utilize multiple channels, move situation and their insufficiency in committing to digitaliza- across them during their customer journey, and expect a tion initiatives. In 2019, however, a medium-sized tradi- seamless transition among all channels (Hansen and Sia, tional Irish retail company started already its initiative to 2015). Along with these developments, "Omnichannel "Go Digital" with the ambition to become an omnichannel Management" emerged as a new strategic approach to man- retailer and was confronted with difficulties in transferring age the simultaneous and synergetic interplay between its exceptional in-store experience to the web-shop envi- channels in order to provide seamless customer experience ronment. This case study describes these difficulties from and meet those expectations (Piotrowicz and Cuthbertson, 2014; Shi, 2017; Verhoef et al., 2015). Studies show that an omnichannel approach is positively related to the retailer's Maynooth University, Ireland performance as, for example, omnichannel customers spend more than traditional ones (Cao and Li, 2015; Criteo, Corresponding author: Gultekin Cakir, School of Business, Maynooth University, Maynooth, 2020; Sopadjieva et al., 2017). However, implementing an Co. Kildare, W23 F2H6, Ireland omnichannel approach to generate a seamless customer Email: gueltekin.cakir@mu.ieCakir et al. 123 various perspectives and demonstrates the complex task of strategic non-financial goal can be considered a significant achieving channel integration in order to provide a unique and change in strategy development (Cakir et al., 2019). seamless customer experience. However, recent research highlights that the long-term The teaching case is structured as follows. The next sec- success of digitalization is far more convoluted than just tion provides general background details about recent transforming all the physical assets to digital ones developments in the retailing industry and insights about (Bharadwaj et al., 2013; Ross et al., 2017). The integration the Irish retail landscape. After that, the retailer's back- of multiple retail channels implies important decisions on ground, along with its motivation to follow a digital strat- the allocation of resources (Li et al., 2018). egy, is described. In the subsequent main section, major challenges are outlined. Concluding case questions com- plete the article in the last section. The Irish retail landscape To drive sales, Irish retailers usually follow an active discount Background strategy, especially during the Christmas season, Valentine's Day, Black Friday, or Cyber Monday. For instance, 97.5% of The changing face of retailing industry all online purchases on Black Friday were discounted with a The retail industry is undergoing a rapid and dynamic digi- reduction of up to 30% (KPMG International, 2018). tal transformation process. According to Gartner, global Furthermore, the presence of large online market players sig- investments in retail technology have reached US$200 billion nificantly affects offline retail in Ireland. In fact, 18% of Irish and will continue growing up to US$225 billion by 2022. consumers shop less often at regular retail stores because of This rapid growth of technologies such as Artificial Amazon (PricewaterhouseCoopers, 2018). In addition, con- Intelligence (AI), mobile technologies, augmented reality, sumer expectations are rising through concepts such as free virtual reality, and the Internet of Things (IoT) is essentially same-day delivery, return shipping, or package tracking. changing the interplay between customers and retailers- However, these concepts and tools can represent a huge com- therefore altering the retail landscape. Without a doubt, the mitment to small- and medium-sized enterprises (SMEs) and COVID-19 pandemic has heavily accelerated the digitali- affect their profitability negatively. zation process in the industry. Drastic changes in consumer Today, Irish retailers are increasingly investing in new behavior force retailers to rethink their approach toward the technologies and store refurbishments to create a more customer as more and more transactions are shifting toward sophisticated customer experience and greater engagement digital channels (Pantano et al., 2020; Roggeveen and in order to drive sales (Retail Ireland, 2020). Retailers who Sethuraman, 2020). Not only short-term needs during the struggle to keep up with the dynamics run into the danger crisis are required to meet but more importantly, the long- of being outplayed by their more digitalized competitors term implications need to be recognized and addressed in who manage to provide their customers with a better expe the course of a sustained digitalization strategy. It is rience (Grewal et al., 2009). In addition, boundaries in the expected that many new behaviors which are adopted by competition are vanishing since international competitors consumers as well as by retailers may last and even become such as Amazon are entering the physical world and threat- "the new normal" (Roggeveen and Sethuraman, 2020). ening small- and medium-sized retailers. Most retailers are trying to differentiate themselves from competitors by offering customers a positive shopping experience across different channels to increase customer The retailer's background loyalty and thus create a competitive advantage. Customer The retail company in the current case study was origi- experience is a multidimensional construct which com- nally established over 50 years ago by the Government to prises customer's cognitive, emotional, behavioral, senso- help develop Irish craft makers into self-sufficient entre- rial, and social responses to a firm's offerings whether they preneurs and to create sustainable design jobs in Ireland. are transactional or non-transactional in nature during the Today, the company is one of the largest retailers special- entire customer's purchase journey (Lemon and Verhoef, izing in high-quality Irish design products with numerous 2016; Mosquera et al., 2017). In this respect, insufficient stores nationwide and an e-commerce platform with over efforts toward the implementation of digital initiatives can 25,000 stock keeping units (SKUs). It employs over 350 result in negative customer experience and erode a firm's people and has a strong relationship with Irish designers competitive advantage (Grover and Kohli, 2013). Recent and an established and loyal customer base. The firm's bankruptcies of hugely successful retailers of past such as strength lies in quality products and strong customer RadioShack and Toys "R" Us and dwindling profits of experience delivery in brick and mortar stores. The prod- many other traditional retailers show the fact that old uct line is extensive and includes a wide range of items assumptions about customer experience are no longer valid from fashion, knitwear to accessories, art, and others. and need to be reconsidered. Also, from an objective per- However, the firm's main distinguishing feature com- spective, the growing role of customer experience as a pared to competitors is its outstanding in-store experience|24 journal of information Technology Teaching Cases l i(2) their customers get through atmospherics and interaction with knowledgeable. empathetic. and ready-to-help sales associates. The firm's key strategic direction is to be a customer-centric company that sells products in the mid- dle range. In most categories, it competes on quality rather than price. putting customers at the heart of what the com- pany does. According to their top management, \"every decision we make is based on whether it's going to add customer experience and ifthe customer is going to come back to us." Currently, the organization is facing drastic changes in the retail industry and is transforming and aligning resources toward an omnichannel approach, with the major goal to integrate on- and offline channels to pro- vide a seamless experience across all channels to their customers. Analyzing challenges in aligning on- and offline channels In 2019, the management set up a \"Go Digital" initiative and defined a range of important steps and investments around channels, technology, and organizational restruc- turing to realize an omnichannel strategy. In this ambi- tious and challenging endeavor. due to its digital coverage and scalability. the web-shop represented a particularly important role. However, since its introduction in 2011. it was still considered to be behind expectations and not developing its full potential regarding sales perfor- manckunlike the flourishing offline business. The retailer's aspiration was to become the gifting platform of choice, which is interpreted as becoming \"Amazon of gift shopping." However, the first strategy meetings revealed several shortcomings to overcome first in order to realize the vision. The web-shop was characterized by a weak perfor- mance and inefficiency as it merely accounted for around 5% of the company's overall revenue but still made use of about 25% ofthe overall marketing budget in 2018. One of the reasons was attributed to the fact that a substantial amount of resources was invested in short-term campaigns that failed to bond customers and ensure customer reten- tion. The perfonnance mismatch of both channels was also evident through a signicantly lower number of online repeat customers compared to offline buyers. In fact, most ofthe online sales the company achieved were largely gen- erated from customers located in counties where the retailer owned physical shops. Especially, value-driven customers were prominent as online customers, underlying a discrepancy to quality- and service-driven offline cus- tomers. Moreover, online sales were over-reliant on two to three major brands. From a website metrics perspective. organic search was dominating and substantial referrals from the company's social media presence failed to appear. This indicated a weak connection to customer activities on social media. Another issue concerned the continuous downtime of the website and issues such as product list- ings not being displayed. The company recently moved its website from Magento l to Magento 2 and was still coping with operational issues arising from the change. However, the most signicant aspect the retailer was concerned about was the company's web-shop providing no experien- tial features as such and not being able to deliver a similar shopping experience as the company's physical shops do. The management agreed that this issue represented a major flaw in the online channel. In this context, a problem was also the quality of prod- uct images and videos provided by the suppliers for the web-shop. The retailer could not use around 80% of the content provided by designers since they were either of poor quality andfor were inconsistent across suppliers. More importantly, the fact that many of those suppliers were setting up their own websites and selling their prod- ucts directly was, in fact, a bigger concern for the manage- ment. The lack of an efficient and integrative customer relationship strategy with Irish suppliers of high-quality design products was addressed in this regard and consid- ered another major shortcoming. The management real- ized early that one ofthe reasons the company was facing such difficulties was the fact that going digital represented an afterthought. Before the idea of following an omnichan- nel approach, physical store and online shop managers were judged based on the performance of the channel they were responsible for. Store managers were only looking after sales in their shops and were completely indifferent about the performance of the web store. The same applied to online managers who were focusing on their efforts on online performance. Another difficulty the retailer was facing concerned content personalization. The company was struggling in retrieving insights about its customers and was not capa- ble of identifying if the customers were online or in- store shoppers, whether they were frequent shoppers or occasional/seasonal shoppers, gifting shoppers. or just looking for something for themselves. The major reason was assumed to be the absence of a well-established practice to capture customer data and use the data stored into a database to understand clients' interests. prefer- ences. genders, and names to establish a well-organized and advanced procedure to customer segmentation for better targeting ofcustomers and connections with them. On top of that. the retailer did not utilize any loyalty program and email targeting system to provide precise and personalized offerings. Instead, all email sending campaigns were based on common sense on occasions like Valentine's Day or Christmas. Interestingly, during the meetings, the management made another critical observation concerning the general lack of effort toward international exposure despite tourists representing a substantial number of customers. The missed potential in this regard was accompanied by the fact that Cakir et al. 125 there was no strong relationship management with tourism ORCID iD customers. However, sales associates play a significant role Gultekin Cakir iD https://orcid.org/0000-0001-9715-7167 in building up and keeping a relationship with customers. With tourists who are very likely not returning to the shops, bonding is made difficult. Certainly, tourists are able to References visit the web-shop anytime and anywhere. Bharadwaj A, El Sawy OA, Pavlou PA, et al. (2013) Digital busi- ness strategy: Toward a next generation of insights. MIS Quarterly 37: 471-482. Discussion Bijmolt TH, Broekhuis M, de Leeuw S, et al. (2019) Challenges On the way toward an omnichannel approach, the retailer at the marketing-operations interface in omni-channel retail identified several key problems along the strategic, opera- environments. Journal of Business Research. Brynjolfsson E, Hu YJ and Rahman MS (2013) Competing in the tional, technological, and structural levels. The manage- Age of Omnichannel Retailing. Cambridge, MA: MIT Press, ment agreed that the online channel plays a major role in pp. 1-7. becoming omnichannel. It is designed to scale quickly, but Cakir G, Bezbradica M and Helfert M (2019) The shift from finan- there are no volumes to realize this. In fact, "the web-shop cial to non-financial measures during transition into digital could be four to five times more profitable than the physical retail-A systematic literature review. In: International con- stores, once substantial sales volumes are reached." In ference on business information systems, ETSI Informatica, order to facilitate digital growth beyond physical scalabil- University of Seville, Seville, Spain, 28 June 2019, pp. 189- ity, these issues need to be resolved in the course of the 200. Cham: Springer. retailer's digital strategy formulation. Cao L and Li L (2015) The impact of cross-channel integration on retailers' sales growth. Journal of Retailing 91: 198-216. Criteo (2020) 3 reasons why marketers need a killer omnichan- Case discussion questions nel strategy in 2020. Available at: https://www.criteo.com/ blog/omnichannel-strategy-2020/ (accessed 24 September 1. What are the current developments and important 2020). aspects of the retail industry? Grewal D, Levy M and Kumar V (2009) Customer experience 2. What kind of challenges is the retailer confronted management in retailing: An organizing framework. Journal with while transitioning into omnichannel? of Retailing 85: 1-14. 3. What main challenge do you see as critical? Grover V and Kohli R (2013) Revealing your hand: Caveats in 4. How to characterize the retailer's distinguishing implementing digital business strategy. MIS Quarterly 37: feature in their offering? 655-662 5. What are the viable technology solutions, which Hagberg J, Sundstrom M and Nicklas EZ (2016) The digitaliza- can help to transfer the offline experience to the ion of retailing: An exploratory framework. International Journal of Retail & Distribution Management 44: 694- online environment? 712 6. How should the retailer compare different technol- Hansen R and Sia SK (2015) Hummel's digital transformation- ogy-enabled solutions in the transformation Toward omnichannel retailing: Key lessons learned. MIS process? Quarterly Executive 14: 51-66. 7. Are there other viable alternatives for the retailer KPMG International (2018) Annual retail survey 2018. Available at: instead of going omnichannel? https://home.kpmg/content/dam/kpmg/uk/pdf/2018/01/kpmg- annual-retail-survey-2018.pdf (accessed 21 March 2020). Declaration of conflicting interests Lemon KN and Verhoef PC (2016) Understanding customer The author(s) declared no potential conflicts of interest with experience throughout the customer journey. Journal of Marketing 80: 69-96. respect to the research, authorship, and/or publication of this Li Y, Liu H, Lim ET, et al. (2018) Customer's reaction to article. cross-channel integration in omnichannel retailing: The mediating roles of retailer uncertainty, identity attractive- Funding ness, and switching costs. Decision Support Systems 109: The author(s) disclosed receipt of the following financial support 50-60. for the research, authorship, and/or publication of this article: This Mosquera A, Pascual CO and Ayensa EJ (2017) Understanding project has received funding from the European Union's Horizon the customer experience in the age of omni-channel shop- 2020 research and innovation program under the Marie ping. Icono14 15:5. Sklodowska-Curie grant agreement No. 765395, and was also sup- Pantano E, Pizzi G, Scarpi D, et al. (2020) Competing during a ported, in part, by Science Foundation Ireland grant 13/RC/2094 pandemic? Retailers' ups and downs during the COVID-19 and co-funded under the European Regional Development Fund outbreak. Journal of Business Research 116: 209-213. through the Southern & Eastern Regional Operational Program to Piotrowicz W and Cuthbertson R (2014) Introduction to the Lero-the Irish Software Research Centre (www.lero.ie). special issue information technology in retail: TowardINF80006 A2 Omnichannel Retailing Case Study Name: Hai Luan Ngo Agenda Student Id: 104102599 1. Introduction Due Date: 24 Sep 2023 2. Current Retail Industry Status & Future Trends 3. Challenges During Omnichannel Transition Time: Monday 17:30 - 19:30 4. Critical Challenge Analysis 5. Retailer's Distinguishing Features 6. Viable Technology Solutions 7. Recommendations and SolutionsIntroduction The retail industry is currently in disruption, navigating the difficult elements of digital transformation and changing consumer behaviour. The push for omnichannel retailing - the seamless merging of online and offline shopping experiences - is at the core of this shifting (Verhoef et al., 2015). This case study is about a retailer who, despite having a solid offline presence, is experiencing difficulty with their online operations. This study is significant because it reflects prevalent challenges in the modern retail industry: the harmonization of digital and physical shopping experiences. (V In this presentation, we will address: O 1. The current developments and vital aspect of future trend of the retail industry. 2. The common challenges faced by retailer when they transform their + OMNICHANNEL $8 8 MARKETING business to omnichannel. 3. Emerging technology solution to close the gap between offline and online customer experience. AMA We'll start with a thorough dive into the modern retail landscape, then analyze 888 the retailer's difficulties, and finish with viable answers and recommendations. 20/09/2023 2Important Aspect of Current Retail Industry and Future Trends The retail industry is undergoing a transformation fueled by significant technological advancements. These technologies have altered customer-retailer interactions, providing more tailored and flawless buying experiences. Furthermore, the COVID-19 pandemic has accelerated to change e-commerce and omnichannel strategies, with an increase in online transactions. As a result, traditional stores are being pressured to incorporate and integrate technology advancements to remain competitive. Furthermore, given its crucial role in differentiating companies in a crowded market, a strong emphasis is being placed on improving the customer experience across all touchpoints. Current status Future trends Customer expectation: According to Verhoef et al, 2015 as earlier Emerging technology: Internet of Things (IoT), Augmented Reality (AR) or mentioned, the retail business is transitioning from isolated channels to 5G Virtual Reality (VR) experiences will provide immersive shopping an integrated omnichannel strategy. This strategy put an importance on experiences that bridge the real and digital channels. These technology will the seamless integration of online and offline channels to provide a assist retailers have more insights to engage consumers by generating data unified consumer experience. In this scenario, the store was attempting points and touchpoints, towards blurring the gap between channels (Grewal to align its resources toward this approach, highlighting its significance et al., 2019) . in the current retail scene. Personalized AI-driven Recommendations: will enable more tailored Integration between online and offline data: A crucial requirement for purchasing experiences across all channels by predicting customer wants and channel integration to maximize customer value is that the majority, or desires (Dwivedi et al., 2021). To understand more in details, how AI can at least a critical mass, of the customer base uses numerous channels help retailers to understand consumer behavior and provide consumer a concurrently. Furthermore, as demonstrated in the preceding Chapters, a better shopping experience, according to Lv et al 2017, AI generates highly integrated channel system employs a uniform customer model sophisticated user profiles by rapidly evaluating massive amounts of data because the focus is not on tailoring distribution channels to the needs of from numerous touchpoints, such as surfing activities and purchase history. specific customer segments, but on reconciling touch points and Predictive analytics may use these profiles to predict future wishes, chatbots marketing instruments in such a way that customers self-select into the can give personalised interactions, and dynamic content modifications can appropriate channels (Binder, 2013). resonate with individual tastes. Furthermore, AI detects subtle user preferences through techniques like as facial recognition and Natural Mobile app commerce booming: Mobile devices serve as a link between Language Processing, resulting in more exact recommendations. Platforms offline and online shopping, with consumers frequently researching such as Amazon and Netflix leverage AI-powered systems to improve things on mobile before making an in-store purchase, or vice versa customer engagement, increasing both satisfaction and brand loyalty. (Grewal et al., 2017). 9/20/2023 3What kind of challenges is the retailer confronted with while transitioning into omnichannel? Ineffective Marketing Low Retention Rate Reliance on few Operation issues Inconsistent Supplier Campaign brands (Main) Content According to Kumar et al 2014, The increasing digital According to Ailawadi and Harlam Operational inefficiencies can The retailer's challenge with the online campaigns appear to be transformation of retail (2009), diversification of brand severely undermine the customer inconsistency and poor-quality temporary, with a concentration on emphasizes the importance of offerings is key to achieving experience in retail. The retailer's content from suppliers harms its short-term promotions rather than retaining existing online clients, resilience against market transition from Magento 1 to online image and product display. long-term consumer relationships. which is frequently less expensive fluctuations and changes in Magento 2 brought about Inconsistent product visuals and They argue that customer lifetime than recruiting new ones individual brand popularity. operational disruptions, like website videos might mislead and reduce value (CLV) marketing methods (Reichheld & Sasser, 1990). The Furthermore, diversification fosters downtimes, which can erode potential buyers, resulting in poorer contribute to long-term experience gap between the an environment conducive to customer confidence and deter sales and satisfaction (Kim profitability. Instead of short-term retailer in question's physical targeting a wider customer base repeat transactions (Mithas et al., Lennon, 2013). This issue also efforts, concentrating on long-term storefronts and their web shop is a (Bronnenberg et al., 2012). In the 2005). Persistent operational issues, highlights potential misalignments in consumer relationships may be major difficulty. Inconsistent case of the retailer, a predominant in a digital era, can dent the retailer's supplier-retailer collaborations, more effective. brand experiences across channels focus on two to three major brands reputation, making smooth highlighting the importance of In addition, allocating an can reduce customer satisfaction restricts its market outreach and operations paramount for successful stringent quality controls and excessive budget to a channel that and, as a result, loyalty (Verhoef makes it susceptible to the omnichannel adoption (Verhoef et collaboration to assure content contribute minimum to total et al., 2015). Personalization, competitive whims of these brands. al., 2015). Ensuring operational uniformity (Grewal et al., 2017). revenue can be viewed as going beyond marketing, can This setup can also weaken the consistency is crucial for the Having a consistent and high-quality inefficient. Neslin et al. (2006) profoundly influence customer retailer's bargaining power, retailer's strategic competitiveness. online presence is critical for emphasize the need of recognizing satisfaction and, by extension, potentially leading to less favorable retaining customer trust and cross-channel synergy and retention (Huang & Rust, 2018). terms of trade. Additionally, the strengthening brand identification. allocating marketing funds based heavy reliance on specific brands on channel performance and client may deter potential customers preferences. seeking variety or those loyal to other brands, thereby limiting the 9/20/2023 retailer's market growth. 4While all omnichannel retail concerns are pressing, a low retention rate can be a symptom of numerous underlying issues. ranging from product quality to customer service to the online user experience. Addressing the underlying causes of low retention can have a domino effect on other issues, making it a critical priority area for businesses. We will deep delve into this main challenge as follow In the omnichannel retail landscape, retaining customers emerges as a particularly pressing concern, overshadowing other formidable challenges like operational glitches or supplier inconsistencies. Research consistently underscores the economic weight of retention: acquiring new customers can be up to five times costlier than retaining current ones (Hennig-Thurau et al., 2002). The ripple effect of low retention reverberates through a retailer's ecosystem. It not only elevates marketing costs but diminishes the potential for brand awareness, given that word-of-mouth influences approximately 50% of purchasing decisions (East et al., 2007). In the hyper- competitive digital retail space, where consumer switching costs are minimal, low retention signals a potent competitive vulnerability, offering rival entities a golden chance to court discontented customers (Keaveney, 1995). This challenge also stymies retailers' attempts at harnessing data-driven personalization-a crucial lever in modern commerce (Kannan & Li, 2017). The dire statistics surrounding retention accentuate its gravity: a mere 5% increase in customer retention can boost profits by ZEEE E 25% to 95% (Reichheld & Sasser, 1990). Thus, for retailers navigating the multifaceted omnichannel maze, homing in on retention becomes a pivotal strategic imperative, encapsulationg broader issues of customer satisfaction, brand loyalty, and competitive positioning. 9/20/2023 5How to Characterize the Retailer's Distinguishing Feature in Their Offering? Follow the Irish retail, the retailer's distinguishing feature in their offering, one must identify what sets the retailer apart from its competitors and understand the unique value it brings to its target market. Here's a nuanced approach, based ... on the case details provided, supplemented by these following advices: . . . Experiential Physical Stores: Its heavy investment in experiential physical stores echoes Pine and Gilmore's (1998) emphasis on the significance of the C U experience economy. Such experiences can deeply embed the brand in consumers' minds. Customer-Centric Approach: While their customer-centric philosophy is admirable, it is not unique in today's world, as Kumar et al. (2010) demonstrate its critical significance in business profitability. Quality Over Price: While price wars abound in the retail business, this retailer decides to compete on the quality. This positioning enables businesses to target a specific market segment that values quality and is willing to pay a premium for it. Porter's (1980) generic tactics show how distinctiveness, such as stressing quality, may be a powerful competitive strategy when performed well. + 9/20/2023The viable technology R AR solutions can help to OF transfer the offline to the + online environment? As mentioned previously, bridging the gap between offline and online experiences, especially for a retailer like the Irish firm which prioritizes ambiance and customer interaction, requires leveraging advanced technologies. AR emerges as a forerunner. AR can enhance online customer experiences by providing a sensory-rich interaction, potentially mimicking the in-store feel. Another viable solution is Al-driven chatbots. They can simulate the knowledgeable and helpful interactions experienced with in-store sales associates. Al-driven platforms can dynamically cater to customer queries and suggest products based on preferences, mimicking the personal touch of a VR Al IOT human associate. Lastly, integrating IT can offer personalized promotions or product information when customers view items online, mirroring the instant feedback received in-store. As the Irish retailer navigates its omnichannel transformation, these technologies may not just replicate but potentially enhance the in-store experience online. One best practice that implement successfully the AR is IKEA. The "IKEA Place" app allows customers to visualize how furniture will look in their homes before making a purchase. Users can select an IKEA product they like and use the camera on their device to place the product virtually within their living space. This bridges the gap between the in-store and online shopping experience, enabling consumers to make more informed purchase decisions and reducing the rate of product returns. The app has received widespread praise and is often highlighted as a standout example of how AR can be utilized effectively in retail (AYOUBI, 2017). Data Data Data 9/20/2023 utput Processing InputDifferences retailer's technology solutions in Industry Gross Value Added Loalo the transformation (Billions USD) LOT Blockchain AR & VR Al is mastering the art of loT location technologies Blockchain will legitimatize AR can enhance the way we selling for online retailers by could enhance retail transparency of retail supply shop by displaying and/or personalizing consumer experiences by sending chains, as raw material and filtering info such as, price, process? Retail ($1,087) recommendations based on instant promotions, reviews, manufacturing sourcing can promotions, reviews, ratings, their digital footprint of or inventories on items as be recorded to its etc. to AR devices as behaviors, profile data, etc. customers move through the immutable ledger customers browse a store aisles Solutions Advantages Challenges Considerations AR AR offers a tactile and immersive The implementation requires substantial The retailer needs to assess whether their product range experience, potentially boosting online investment, both in terms of technology and aligns with the AR experience and whether their engagement and sales, as evidenced by content creation. Further, AR might not be customer base is tech-savvy enough to embrace such For the Irish retailer IKEA's success with its AR app universally accepted or understood by all innovations transitioning into omnichannel retail, both customer segments IoT and VR could be VR VR offers a unique, immersive shopping VR requires specific hardware (like VR Retailers should consider the relevance and practicality pivotal. IT could offer experience. It allows customers to virtually headsets), which might be costly for both the of VR in their specific sector. For instance, while VR real-time data analytics to understand customer try products or visualize how items would retailer and the customer. There's also the might be highly beneficial for a furniture or home preferences and look in their space before making a aspect of VR potentially being a novelty that decor retailer, its practical application for a grocery streamline operations, purchase. For instance, furniture retailers might wear off unless it's integrated store might be limited. VR should aim to solve a while VR could bridge the could let customers see how a sofa might fit thoughtfully into the shopping experience genuine customer pain point rather than merely being a experiential gap between online and offline into their living room. flashy addition shopping. However, given LOT IOT allows for real-time tracking and The increased connectivity and data flow For successful IOT implementation, retailers should the challenges and analysis of customer behaviors, stock levels, ensure that they have robust cybersecurity measures in specifics of the retailer's could raise concerns about data security and operations, it's crucial to and supply chain movements. For instance, privacy. IOT devices might be susceptible to place and integrate IOT devices seamlessly with current adopt a thoughtful and smart shelves equipped with weight sensors breaches if not adequately secured. systems. The focus should be on how these devices can measured approach to the can collect data on stock levels, while Moreover, there's the challenge of enhance the customer experience rather than deploying integration of these beacon technology can push personalized integrating these devices into existing them just for the sake of technological advancement technologies promotions to customers' smartphones based systems without causing disruption on their location within a store 8Other viable alternatives for the retailer + . . . % S instead of going E + omnichannel? E-COMMERCE E + Going omnichannel is a popular strategy for many retailers, but it isn't the only path to success. Depending on their goals, resources, and customer base, the Irish retailer might consider some of the following alternatives - Specialise offline-stores: Specializing solely in offline retail in today's digital age has inherent risks. While physical stores offer tangible experiences, they limit the retailer's reach, potentially alienating younger, tech-savvy consumers who value online convenience. Operational costs of brick-and-mortar stores, combined with their vulnerability to disruptions, as evidenced by the COVID-19 pandemic, further challenge this approach. Solely relying on physical presence, in an era where competitors are a click away, risks obsolescence and missed opportunities in an evolving retail landscape. However, some retailers, especially luxury brands, maintain a primarily offline presence to offer an exclusive, tactile, and high-touch customer service experience (flagship stores) (Grewal et al., 2019) Another alternative is focusing on E-commerce: Focusing exclusively on e-commerce might seem forward-thinking, but it comes with pitfalls. While e-commerce offers scalability and reach, it lacks the tactile and immersive experience physical stores provide. Moreover, digital platforms are saturated, intensifying competition and driving up customer acquisition costs. Furthermore, customer loyalty in the online sphere can be fickle, as consumers can easily switch between brands. Over- reliance on e-commerce might also expose a retailer to tech disruptions and cyber threats, which can jeopardize operations and trust (Verhoef et al., 2015). => Finally, physical stores offer intrinsic value that e-commerce platforms struggle to replicate. In- person shopping experiences allow consumers to engage their senses-touching merchandise, gauging fit, and assessing quality first-hand. Physical outlets can foster stronger emotional connections through in-store atmospherics and face-to-face interactions. Such experiences can drive brand loyalty and create a sense of community that digital platforms may find challenging. Additionally, instant product accessibility and the avoidance of shipping delays are undeniable conveniences. Yet, it's essential to recognize that while physical stores hold unique benefits, a synergy with e-commerce can maximize overall potential