Retail Consumer Behavior Patterns and Shifting Dynamics: The Future of Retail & Retail Trends
The Retail market landscape has seen significant changes in retail trends and shifts in consumer behavior since the coronavirus breakout, but the industry now appears more optimistic about the growth prospects. Shoppers have readily adjusted to the “new normal,” whether it’s a higher reliance on e-commerce, a surge in-home delivery, rapid adoption of curbside pickup, an increase in contactless payment, or other modifications in their behavior.
Here Are The Ten Emerging Retail Trends We Predict For 2022
1. Adoption of the omnichannel distribution system and cross-channel marketing
Online shopping is gaining more momentum around the globe, with a growing number of new companies using social media platforms and marketplaces to launch their novelties. They are actively executing their online marketing and promotional activities to capture remote buyers, lure “stay home consumers”. Customers who turned to online shopping to quell their thirst for store window shopping turned to their online apps and favorite marketplaces to snap the latest products from agile vendors who excel in hassle-free web orders, contactless drop shipping, and faster delivery capabilities.
In an industry where traditional store-based retailing is still predominant, manufacturers are coping with the changing dynamics of consumer behaviors, business models; and automation. With consumers becoming more at ease with virtual space interactions, retail businesses have no choice but to ramp up their digital strategies and touchless technologies to meet the pent-up demand for seamless omnichannel operations.
Self-service check-ins and checkouts have become the new norm, saving time and money for retailers. You may want to consider creating a hashtag for people who want to tweet their latest photos or hire a social media influencer to promote your brands, customer stories, catalogs, new arrivals, etc.
2. Personalization in the data mining age
To meet the right customers, retailers use Facebook and Google ads that are personalized and highly targeted. The same applies to B2B marketing when you rely on ABM (Account-Based Marketing) to target corporate accounts, decision-makers, etc.
Access to marketing automation software will result in a rise in customized SMS and email marketing from all brands. Offering customized customer communications, applicable discounts, and connecting with customers through video content, for example, video content, can help you have a better shopping experience and improve your customer relationship.
Retention takes center stage for retail businesses; retailers can enhance their post-purchase experiences, streamline fulfillment, and increase their communications with current customers.
3. New Look Stores
Many retailers are investing in their technology infrastructure to ensure they can adjust for the long term, placing ad-hoc changes in store permanently to meet consumers demand whenever and wherever they choose to shop. Retailers are also now tasked with turning temporary store hacks into longer-term standards. While many retailers appointed a store associate to physically count foot traffic to adhere to the occupancy rule, some retailers added floor markers that are spaced 6 feet apart and installed customized plexiglass shields at all point-of-sale.
Walk-out mobile checkout technology and real-time mobile chat allow associates to interact with shoppers during social distancing. The store experience is a big part of REI’s success. The outdoor retailer began to reopen shops that launched zero-contact bike shop services, virtual events, and a pilot program for virtual outfitting.
4. Social media marketing: from casual browsing to visual identification tracking
By encouraging retail businesses to market items that are specifically tailored to suit the needs of culturally specific regions, social media platforms are becoming the new playground for marketers to harvest consumer data. Because of a large number of internet users on social media platforms like Instagram, Facebook, Alibaba Express, TikTok and Twitter, retail businesses can think globally and act locally.
Since millennials are known as the “digital natives,” they spend more time on social media platforms, where they follow their favorite celebrities, native brands, and social influence stars. AI-driven apps for visual recognition are being used by followers to scan images and social media posts to dissect and identify each apparel worn by their favorite entertainer, sports athlete, etc.
5. Emphasizing micro-fulfillment & smart delivery
Consumers want it now, and they can get it now with online shopping, which is available 24 hours a day, seven days a week. Many companies are fiddling with the idea of acquiring delivery drones to expedite web order fulfillment and zero contact deliveries.
The rise of remote spending in pandemic times can be attributed to people becoming reluctant to mingle with other customers who might be infected. The rise of Contactless fulfillment and Buy-now pay-later (BNPL) purchasing methods will become popular. In 2022 consumers expect to see the option at checkout rather than find delight in it.
6. The race for Prime CX is the new battleground
If at-home consumption is the new normal nowadays so is the ease of use and convenience. With the introduction of same-day delivery, retailers are under so much pressure from Amazon-like players who have taken velocity to new heights. To stay current, Retailers can use real-time trackable ecommerce solutions and user-friendly retail software to scale.
The world of retailing is shifting as a result, retail store operators must find new ways of catching consumers’ digital attention, including curbside & BOPIS, clienteling, personalization, social marketing, loyalty, interactive web design, Livestream shopping, and the evolving user experience. It will be easier if they wish to offer adequate retail solutions that are compatible with the new Customer Journey patterns in cyberspace.
7. Realtime In-Store Intelligence
To improve the shopping experience, tech-savvy retailers may use visitor identification technologies to better understand their customers’ browsing behaviors, profiles or invest in augmented reality dressing rooms, showcase the new collection of smart wearables, deploy self-checking counters and touchless payment options.
Eye-tracking can tell retailers where the customer looks, while Radio-frequency identification (RFID) trackers can measure what the consumer picks up. Inventory management and customized customer information will also benefit from these data-driven solutions. The same goes for online monitoring; there are plenty of intent-driven tools to help you record and analyze each online visitor to your website.
8. AR in the retail industry & live viewing: the promised land
Customers will watch as their products are chosen in real-time during live shopping experiences. Live shopping apps and platforms offer customers a new way of interacting with the e-commerce vendors in realtime; the same way video platforms have served as the main communication channel in business meetings.
The virtual reality of seeing, touching, feeling, and interaction with a virtual world is still evolving. As a starting point for developing the virtual reality experience, retailers should install try-on technology. Brands are experimenting with new platforms like voice-powered shopping to address increasing acquisition costs and advertising volatility. They’re also emphasizing on customer retention, rewarding and incentivizing current customers to spend more.
While livestream shopping, VR technologies are popular in many Asian markets, retail stores, and North American retailers in general still cherish their one-to-one contacts, and they are going to adopt this approach in the upcoming year.
9. Loyalty vs instant gratification
The concept of loyalty has evolved. The customer needs to be compensated right now, not until they have accumulated enough points to earn anything. Daily freebies would delight the patients and clients. Consider benefits that add value, such as coupons and discounts instead of air miles.
As the market becomes more competitive, retailers search for goods that do not clash with online competition. The brand and demographics determine whether the product is luxury, customized, or exclusive. Over the next few years, touchless technology solutions, user experience, mobile, social media marketing and remote shopping will continue to boost the contactless economy in the Next Normal.
10. Think locally & act sustainably
The desire to live in a safe, healthy, and sustainable environment will continue to haunt us for a while. Consumers want to know who made the product, what ingredients it contains, how long it will last, and the product journey. Several applications provide consumers with tracking applications to scrutinize, rate, and compare products. It is essential for brands to invest in sustainable packaging for manufacturing and fulfillment methods.
Environmentally friendly goods will continue to increase in popularity. Many anti-global movements and voices worldwide are being mobilized around the importance of clean energies, circular economy, veganism, upcycling, etc.
Acceleration” stands at the top of the retail priorities. Retail 5.0 which includes interconnectivity, Big Data, robotics, AI, business automation, VR, and advanced MarTech solutions, were already helping companies transform their omnichannel operations in everything from customer journey mapping, instant product discovery, price management, predictive sourcing, and real-time decision making are all essential ingredients of success in the data-driven age.
Multidev Technologies is one of the best omnichannel/ERP/ POS software developers to offer a turn-key curriculum specialized in digital transformation and step-by-step guides on implementing contingency plans, touchless technologies, or stepping up remote retail strategies based on your retail needs.
If you are looking to step-up your retail operations and digital transformation at the same time, you no longer need to hop from one retail show to another to find the right fit, you can book a remote demo at the comfort of your own showroom. So, stop looking for prepackaged products to boost your retail operations and start looking for a reliable omnichannel partner like Multidev Technologies who could help you fend-off any disruptive trends and harness your overall efficiency. To schedule a free consulting session or demo with a retail management expert, please log on https://chaindrive.com/free-live-demo/ to book a live simulation.