A shocking new study has revealed that 40% of retail SMEs have no CX digital transformation strategy in place.
The research, by Wisteria Accountants, also found their financial divisions believe it will take a further two years for them to recover from the COVID-19 pandemic.
The report reads: “The traditional finance department is reactive, producing results for past business success and improvement. A transformed finance department should be proactive, identifying how to move the business forward for a new value. For example, reviewing liquidity ratios in the retail sector is essential to understanding cashflow. Finance departments can continually review this to reveal trends over certain periods. This can show how quickly the business can recover from financial adversity.
“Recovering from the pandemic, it’s important to cover your main bases before moving towards financial growth. Insurance is key when evaluating how to financially secure your business. You must review your current situation before initiating a financial transformation.”
The efficiency of financially-driven business decisions is also beneficial. Research indicates that companies that use effective strategy methods obtain a 20% increase in revenue.
Finance departments allow business leaders to make informed decisions. Guided by a standard set of practices, finance departments present consistency in an often-fluctuating sector. This allows for financial and departmental comparisons, with quarterly reviews against competitors.
Finance departments should review income and outcome to prepare for evolving business strategies and present a way to navigate through financial difficulties. Finance must work alongside every department to calculate how they can work to maximise profitability.
This is essential for retail SMEs, the report states. For example, in fashion retail, trends and expectations can often dictate what clothing should be produced and sold. However, finance departments can indicate which products perform well year-on-year and hold consistent popularity with customers.
Neither takes away from the other, as both predictions are essential for this industry. Instead, they work in unison to achieve popularity and assured profitability.
The study comes after the 2021 Retail Digital Transformation Survey revealed that better CX solutions is a priority for retailers this year.
Though surprisingly, the figure is down 15% from 2020 when the COVID-19 pandemic took hold.
