The retail industry is leveraging observability to improve digital customer experiences (DCX) and streamline operations, with significant ROI to show for it. According to New Relic’s latest report, retailers see a fourfold return on investment (ROI) from strategic observability efforts. As consumers spend billions online, observability has become critical in enhancing digital experiences and building operational resilience, especially during peak shopping periods like Black Friday and Cyber Monday.
“The findings in the report clearly show how strategic investments in observability not only drive technological innovation, but also lead to tangible business outcomes, enhancing customer satisfaction and operational visibility,” said New Relic Chief Technology Strategist Nic Benders.
Retailers leverage observability solutions like New Relic’s Intelligent Observability Platform to optimize customer journeys and reduce downtime. With tools for live monitoring and real-time issue detection, the platform enables faster problem resolution, improving customer satisfaction and operational efficiency.
To prepare for high-demand periods, retail organizations focus on digital experience monitoring (DEM), including browser, mobile, and synthetic monitoring. Over half of respondents plan to deploy synthetic monitoring in the next three years to identify issues proactively and improve online shopping experiences.
Moreover, AI and the Internet of Things (IoT) are key drivers in adopting observability solutions. Nearly 39% of retail respondents view AI as a pivotal tool for enhanced decision-making, customer insights, and operational improvements. IoT technologies are also gaining traction, particularly for inventory management and in-store operations.
In addition, security and compliance remain top priorities, with 46% of retail organizations citing governance and risk management as their primary reasons for investing in observability. Retailers are consolidating their tools—using 4.4 tools on average, down from 5.4 last year—to eliminate data silos and streamline operations.
Retailers increasingly favour a single, integrated observability platform, with 41% aiming to connect IT performance data directly to business outcomes. This approach streamlines workflows, reduces tool fatigue, and drives greater ROI.