We’re in the final weeks of 2023 and as we head into 2024, we wanted to share some industry insights. This week, we’re focusing on the retail industry.
One of the most predominant things set to transpire in 2024 and beyond is how the retail industry delivers shopping experiences. Shopping habits have changed dramatically due to the cost-of-living crisis, the learnings from the pandemic and the impact of AI and social media.
I’ve written before about how customer experiences have adapted over the years, and it’s this point more than ever that is now the catalyst for innovation among retailers and brands to stay ahead of trends. The days of trudging from store to store to find what you’re looking for as a customer are fading fast, with customers taking to their smart phones to scour the best deal, the best product to fulfil their needs and wants – meaning retailers and brands need to differentiate and think outside the box with how they market their products to the right people at the right time.
Commercialising your assets with AI
AI is not an 'either-or' decision, it's a 'when-to-start' decision that will either put retailers very far ahead, or very far behind. But there will be many more ways in which the tech can disrupt than the customer service chatbots and copywriting capabilities which have featured heavily in this year’s discussions. Over time, AI will drive deep individual personalisation based on intent, location, and time, with offers that perfectly match a customer's 'time in market', making broad segmentation less effective.
AI can analyse vast amounts of data from various sources, such as social media, blogs and online reviews, to predict upcoming trends and this could help retailers anticipate what products will be in demand in the future and adjust their product development strategies accordingly. Essentially, AI will help retailers reach the right audience in the right places.
Elevating your brand
Being able to elevate your brand in this tech-volution driven shopping experience is key. This means micro-retailers adopting mobile apps that deliver more efficient inventory management and payment transactions and enterprise resource planning (ERP) systems that enhance record-keeping and order management.
The demand for hyper-personalisation from customers means an omnichannel retail transformation overhaul is on the horizon. UK DIY player Screwfix, for instance, transitioned to an omnichannel business model across digital, stores, and catalogue by establishing next-day-delivery and click-and-collect options. Learning from best-in-class players, Screwfix quickly became the fastest-growing company in the United Kingdom’s construction and retail market. Retailers that commit to a radical transformation of their tech function can both spark growth and increase performance.
The nature of the retailer
Truth be told, the very nature of being a retailer or brand is the requirement to reinvent yourself and making sure that your core brand lends itself to any new venture. And in this digital age, technology plays a huge part in aiding success for retailers. The need to provide personalised experiences to customers across all channels will continue to trend into 2024.
Bear in mind that customers shop ethically now more than ever, and this is set to continue into 2024 and beyond, so putting sustainable and ethical practices in place to ensure you are meeting customer expectations. Consumer demand for this transparency and ethical practices is higher than ever. Brands that have proactively incorporated sustainable and ethical practices into their operations are reaping benefits in enhanced brand reputation, increased customer loyalty, and improved financial performance.
And finally…
Retailers can ensure sustained growth and lasting consumer engagement by staying ahead of these trends and continuously adapting to the ever-changing market dynamics.
We wish our readers and retail customers a wonderful Festive Period and prosperous 2024! The Innov8 Team!