Retail

NEW DATA: Why Two-Thirds Of Small Merchants Struggle To Innovate

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.

——————————

PYMNTS LIVE ROUNDTABLE: TUESDAY, JULY 14, 2020 AT 12:00 PM (ET)

Digital transformation has been forcefully accelerated, but how does that agility translate into the fight against COVID-era attacks and sophisticated identity threats? As millions embrace online everything, preserving digital trust now falls mostly on banks and FIs. Now, advances in identity data and using different weights on the payment mix afford new opportunities to arm organizations and their customers against cyberthreats. From the latest in machine learning for fraud and risk, to corporate treasury teams working in new ways with new datasets, learn from experts how digital identity, together with advances like real-time payments, combine to engender trust and enrich relationships.

TRENDING RIGHT NOW