Retail is always changing to keep up with consumer preferences and demands. Businesses who want to stay competitive must recognize these desires and adjust their operations to meet them. Here are five trends to look out for.
Personalization
Personalization is a trend that has continued through recent years and shows no signs of slowing. Customers appear to have largely embraced the concept and want even more of it. According to Mood Media, 52 percent of consumers say that their satisfaction increases when their shopping experiences are more personalized, 77 percent prefer brands offering personalized data-based experiences, and 75 percent prefer when retailers use personal data to enhance their shopping experiences.*
Consider utilizing data analytics and artificial intelligence to identify patterns and preferences so you can deliver customers a more personalized experience that meets their expectations.
Niche Influencers
Influencer marketing is changing. It's still big business, but it appears that more consumers are becoming more interested in niche influencers as opposed to those with huge followings.
According to Josh Howarth at Exploding Topics, influencer marketing is still a growing marketing channel.**
"And one that many marketers rely on," he writes. "However, the way consumers interact with and buy from influencers is changing. Specifically, consumers now seek out recommendations from social media influencers that may only have a small, niche audience. An industry study by HypeAuditor found that social accounts between 1k-5k followers get 2x more relative engagement on each post than influencers with a larger following. This is why we're seeing an increasing number of brands seek out 'micro influencers.'"
Increased Delivery Demand
Consumers have been increasingly demanding delivery since the pandemic kept them in their homes. It's a trend that hasn't gone away and is likely to continue rising in the future as more and more businesses strive to meet that demand and not risk losing business to competitors.
"Delivery speed directly ties into convenience and is now top of mind for retailers given all the advances since Amazon's initial overnight e-commerce arrival," says Judy Mottl at RetailCustomerExperience.com.*** "Consumers are now not only expecting fast delivery — they'll easily move on to another brand if they can get the needed item quicker. Yet there is one factor that can change the delivery requirement — free shipping — a big consumer want. A Kearney report noted 80% of consumers would prefer free shipping over fast shipping when shopping online."
Physical and Digital Convenience
Physical and digital retail experiences will continue to merge with more businesses allowing customers to make purchases using digital means, even within physical stores. Some major retailers already offer apps that allow consumers to skip checkout lines by scanning their purchases with their phones. This is increasingly appealing to consumers, so nobody should be surprised as more businesses embrace these types of experiences.
The same goes for other types of self-checkout options and the acceptance of more payment types. Consumers want convenience, and once the right tech is in place, this can also be a boon for businesses providing it.
A Return to the Store?
While there is no doubt that digital shopping and home delivery are major wants from consumers, it might be that we see an increase in people going to physical stores. At the National Retail Federation's NRF 2024 conference, a point was made that consumers are getting tired of problems with the digital world with the rise of scams, deep fakes, privacy concerns, etc. This could drive more people to seek real world experiences that make them feel more like they're living in reality. Retailers must make their stores worth going to for consumers who are already used to doing much of their shopping online.
Businesses must recognize existing and emerging trends in order to stay on the cutting edge and remain competitive. Many of these trends are rooted in technology, so if you aren't taking advantage yet, now is a good time to begin researching how to implement the right tech for your best consumer experience.
* https://us.moodmedia.com/resources/retail/retail-2024-next-level-personalization-ai-and-harmony/
** https://explodingtopics.com/blog/consumer-behavior
*** https://www.retailcustomerexperience.com/articles/top-consumer-behavior-trends-in-2024/
