Small and medium-sized businesses (SMBs) must possess a long list of attributes if they want to stay competitive in today’s day and age. To maintain their competitive edge, they must offer omnichannel features and innovative payment methods, among a host of other factors. That said, when it comes to building an innovation strategy, there’s no one size fits all, as indicated by research inside the inaugural Retail Innovation Readiness Index.
For most SMBs, necessity is the mother of invention. Seventy-seven percent of retailers told PYMNTS that innovation is key, and even necessary to drive sales, while 84.3 percent said they must innovate to stay competitive. Even large retailers, companies that presumably have greater brand recognition and a wider customer base than smaller competitors, said they wouldn’t survive without innovation — 82 percent said it was necessary for continued success.
Furthermore, small businesses tend to value innovation insofar as it keeps customers coming back for more. Nearly 70 percent of small business owners told PYMNTS that they need to innovate to generate or enhance customer loyalty.
PYMNTS research also found that these innovations can come in a wide range of business areas or processes. For retailers, the key is to remain on the lookout for ways to improve or innovate on processes both big and small.
Other key takeaways from the inaugural Retail Innovation Readiness Index:
- 49 percent of retailers believe innovation is imperative to improving business applications for back-office operations
- 61.7 percent of retailers said they innovate in an effort to meet consumer demand
- 52.5 percent of retailers said they are “extremely” or “very” ready for innovation
To find more insights on the state of retail innovation readiness, download the inaugural Index.
About The Index
The Retail Innovation Readiness Index, powered by AEVI, aims to offer a firsthand account of what drives retailers to invest in or forego certain innovations. PYMNTS surveyed more than 400 retailers across nine different sectors to gauge innovation readiness.