How Retail Transformation is Being Driven by Digital Trends?
The digital consumer has Retail Transformation the look of retail and retailers are trying to adapt to the changing consumer.
The brick-and-mortar tradition of retail is threatened by digitally enabled mobile and online channels. But, just adding digital channels won’t aid. A deeper analysis shows that a company’s longevity is dependent on moving away from a one- approach, or even a multi-channel one to an omni-channel approach since consumers are looking for the same brand experience and seamless experience across channels and devices. Digital technologies are central to this change, success requires careful planning and collaboration across a variety of retail tasks. An attentive analysis of trends and consumer behaviour that are driving this shift can assist retailers to maintain their focus, and gain tangible results.
These are the most important trends retailers must look at to ensure that they are achieving meaningful change.
Mobile apps are propelling omnichannel retailing forward
Mobile-based purchases have outpaced the growth of online retail. According to a report from Javelin Strategy and Research1, commerce will be expected to increase from USD 122 billion in 2023 to nearly USD 319 billion by the year 2025. eMarketer2 estimates that smartphone retail sales from m-commerce within the US alone will grow over 50 percent in 2023, reaching USD 102.14 billion.
In addition to the fact that larger phones with more power can provide faster and more convenient shopping Mobile is also becoming an extremely strong connector between all retailers, seamlessly connecting to both online and in-store. Below are some other aspects of commerce:
Rewards Programs, Loyalty Programs, Coupons Mobile apps, which have their own space in phones of consumers they are regarded as tools to build loyalty. Wish-list functions allow retailers to understand a customer’s preferences and preferences, and to offer coupons and deals that are targeted and help consumers to earn rewards more quickly.
Mobile payment apps are becoming more popular
Mobile-based retail transactions could be made in the store at the point of sale (also known as mobile proximity payments) or remote payment (also called peer-to-peer or P2P transactions) which are done through mobile applications or web browsers. P2P payments make use of Near Field Communication (NFC) technology as well as mobile wallets, such as Samsung-Pay, Google-Wallet, Apple-Pay and Google-Pay. The P2P area has apps that are branded that are issued by credit card and banks companies, as and third-party suppliers.
Mobile payments offer customers a seamless experience when shopping with their mobiles, and therefore are an essential option for retailers to implement. An additional Javelin Strategy & Research study on mobile payments claims that in 2016, mobile payments for retail including in-store and online exceeded USD 170 billion. They will increase to USD 40 billion in 2023.
But, given the variety of mobile payment services available, choosing one that is simple to set up and encourages rapid user acceptance will be an important choice.
Here are a few of the most important drivers for retailers and consumers of mobile-based transactions.
Easy and Convenience, The user can carry his credit/debit and gift cards in digital wallets, which are easy and convenient. Furthermore, proximity mobile transactions are quicker as the user only needs to carry his or her mobile near to the reader. This can reduce the amount of time spent at the check-out counter.
Security and Compliance:
Methods like tokenization replace bits of decryptable data to show the details of the cardholder Biometric authentication utilizes methods such as pulse and voice recognition, as well as fingerprint vein scanners. In addition, there are fewer possibilities of losing or stealing cardslost. For instance, Apple-Pay uses a form of tokenization that secures the personal information of consumers as well as Google-Wallet, which encrypts the information using Secure Socket Layer (SSL) technology. According to the MasterCard survey that found the majority of Americans are confident in their payment providers.
Discounts and Rewards:
Businesses offer discounts and rewards when the purchase is made with mobile wallets, thereby encouraging making use of mobile wallets for payments.
Reduced Operational Costs and Greater Efficiency: The frictions associated with payments like credit card fees and waiting times are minimized by using mobile-optimized payments. The floor space that is free allows retailers to generate more revenue. In addition, sending e-receipts by electronic mail can help cut down on costs for paper and guarantee authentic information
Enabling mobile-based payment options is likely to be a pre-requisite for competing. By implementing a secure, solid payment system that is user-friendly and permits bundling of related offerings (such as tracking purchases and loyalty rewards) retailers are able to significantly improve the customer experience. Also, it reduces the chance of the skimming of data (practice of using fraudulent methods to obtain card information) through employees thereby keeping brand image intact
Retailers could keep customers loyal to their brands through points and rewards in connection with purchases made using wallets.
Marketing personalisation and location-based advertising are becoming increasingly prominent
Personalization is the most important factor in retention and loyalty of customers for retailers in the present. There are no geographic limitations in the products and brands they can purchase, customers put a great deal of importance on value, convenience and individualization when making purchasing decisions.
In-store experiences are an excellent way to increase personalization. Beacons, for example, are gaining popularity in the retail sector, with retailers employing them to boost personalization throughout the shopping experience.
Content marketing and social media marketing can have an impact on purchasing behaviour.
Social media can benefit retailers by providing an increase in traffic, exposure and loyal fans and can generate leads while reducing marketing costs. Top platforms like Facebook, Pinterest, Instagram, Twitter, and YouTube have been aligned with the commercial goals and their buy buttons allow for the impulse purchasing behaviour of customers.
According to a study, the majority of customers go online to research a product before making a purchase. Millennial are extremely driven by and trust the opinions of users on social data. So, Retail Transformation have begun posting reviews on their websites as well as apps to market their products. Content marketing is a natural method to improve customer interaction. It involves the creation of value-added consistent and relevant content for websites, emailers and social media platforms. Content that is effective not only improves the search engine Optimization (SEO) efficiency of the websites of retailers but also increases awareness and increased engagement from customers which plays an important part in the buying habits of customers.
Trend 5 :
For retailers, reversing show rooming is a well-known and lucrative trend.
Show rooming the potential for shoppers to browse the store and purchase online was initially thought to be a threat to brick-and-mortar retailers However, it has been discovered that the reverse is becoming more well-known. As per Business Insider, 69 percent of the population living in the U.S have completed reverse show rooming, whereas only 46 percent have tried show rooming. Reverse show rooming, also known as clicking to bricks, happens when a buyer browses online and studies products but then purchases them in the shop. It’s most common when it comes to clothing and furniture.
In addition, it provides buyers the chance to feel and touch the item before purchasing it, this benefits Retail Transformation too. The fusion of offline and online information allows Retail Transformation to comprehend the purchasing habits of customers and aids in providing them with more personal ways. This could lead to more cross-sell and up-sell possibilities and an improved customer service.
Trend 6 :
IoT is used to gather intelligence and improve corporate efficiency.
The Internet of Things (IoT) allows for the tracking and collection of information from sensors that are deployed throughout the value chain of retail, including points of sale inventory management, point of sale and planning supply chain. Analytical tools process the gathered data to gain information about business parameters such as the movement of customers purchasing behavior, as well as social networks, and develop business strategies that improve efficiency and business continuity. For instance, simply keeping track of an item’s location package might be straightforward however IoT-enabled devices that have sensors record temperatures and pressures, and also detect lights.
The most widely employed sensors of the present are cards readers, cameras scanners, beacons and scanners. smartphones and non-contact NFC tags, as well as in-store digital promotions systems.
The following benefits for Retail Transformation are driving the rapid use of IoT:
- Up-sell (practice of offering customers the choice of buying something that is superior to the item they are contemplating) or cross-sell (act of offering other items to go along with their current purchase) possibilities and conversion rates rise in line with the current consumer behavior and the purchase history of customers.
- Real-time promotions for products are now feasible through the analysis of buying habits
- Customer and product movements indicate that the most searched-for items are that will allow retailers to alter the display to reflect this.
- Information on seasonal and mobile-driven purchases helps retailers evaluate the rewards or points that are available to customers
- Real-time inventory insight helps assess and evaluate the performance of every store
The way we shop is changing due to voice recognition and virtual reality.
Voice-enabled searches on Microsoft’s Cortana as well as Apple’s Siri and the Amazon Alexa and Google’s assist are fast changing the way people browse for products from retailers. Google has revealed that as of 2016, 1 of every five searches conducted using android apps within the U.S. was the result of a voice search. In the retail sector search, searching for products and services with natural voice will make the whole process quicker for the consumer and with intelligent home assistants such as Alexa absolutely seamless. While household goods and groceries are the areas which will experience the most rapid increase in sales using voice search, however, all retailers must be quick to ensure that their products are discovered using natural voice-led searches.
Another important aspect is the way marketers are using voice recognition to boost sales, employee as well as operational efficiency. Companies in the field of technology like Theatro have been equipping retail staff with earpieces to allow them to effectively communicate with each other and, most importantly they are able to seamlessly connect with the vital inventory software and point-of-sale software which acts as the primary source of the entire product’s information. This results in unwavering attention to the customer.
Virtual reality is rapidly becoming a major force in retail, because it permits retailers to change the way customers shop. It doesn’t just change the way consumers search for and browse the products on the internet, but also provides full immersion. It gives Retail Transformation the chance to communicate their brand’s message without distractions, and leave an indelible impression in the mind of the customer. eBay and Myers, the Australian retailer, introduced the first virtual reality store in the year 2000. Customers can browse through the collection by using the app of the retailer on their smartphones and also a VR headset s8.
Now is the Time to Act:
The rapid change we witness in the world of retail today is highlighted by the rapid growth of digital technologies , and the subsequent impact on consumer behaviour. An example of this is m-commerce, and its rise to the forefront. It has opened new opportunities for retailers to ingeniously and quickly engage with customers and to provide a higher degree of personalization within their offerings. The convergence of offline and online is creating the omni-channel strategy for retailers who are cleverly utilizing both channels to provide an unrivalled customer experience and boost sales.
The ability to adapt to changing conditions has been a requirement to survive and grow in the current retail environment that is constantly changing. In a time that is constantly evolving in technology it is crucial that retailers understand technological trends and assess the impact they have on businesses and their customers. Retail Transformation has been moving out of physical stores to customers’ homes and their hands, and could be moving soon to the fourth dimension of virtual stores. Retail Transformation must act now to ensure that their company is prepared for the future by ensuring that their brand experiences are consistent and their customer loyalty maintained.