Millions of people and businesses have indeed been influenced & disrupted by the digital transformation. It may entail changes to the business‘s infrastructure, operations, and work culture in order to adapt to the digital economy and new customer needs.
Technology isn’t simply transforming retail; it’s entirely transformed the way users retail, forcing the industry to reconsider its business strategy.
Nowadays, retail industries have become much more reliant on new technologies to offer a simple and wonderful user experience as a result of the waves of technological innovations. The retail industry’s digital transformation is currently gaining steam, and retailers must try to keep up with evolving trends in order to meet modern customers’ demands.
This blog will cover some of the most important retail technology trends that will have an impact on the whole retail industry.
- According to Statista, total retail sales in the United States are expected to reach $ 5.94 trillion by 2024.
- According to Businesswire, the number of individuals redeeming discounts through QR codes will reach 5.3 billion by 2022, indicating that this is a technology trend worth investing in.
Before discussing top technology trends transforming the retail industry, let’s discuss,
Why Is Digitalization Important in the Retail Industry?
In the retail industry, digitalization is driving innovation. When the COVID-19 pandemic suddenly hit, it affected not only how people interacted but also drove more retail shoppers online.
To meet customers ’ expectations and encourage repeat purchases, modern retail businesses use a combination of automation and individualized service. Retailers must use consumer data to study customer behavior and improve marketing effectiveness.
According to Statista, total retail sales in the United States are expected to reach $ 5.94 trillion by 2024. Customers’ buying journeys are being shaped by technology. It enables consumers to make wise and timely judgments, as well as retail businesses to assist customers and obtain vital information for making shopping decisions.
The Benefits of Tech Transformation for Retail Businesses!
Well, there are many benefits of technological advancements in the retail industry. Below, we’ve listed a few of them.
Give valuable insights
Now seems to be the time to put data analytics to work for you if you haven’t already. The more information you gather, the better the consumer experience will be. To increase sales, you can create an ideal, data-driven experience.
Artificial intelligence (AI) and machine learning will help you better understand what your consumers are looking at, what they’re buying together, and other important details. You may then use this information to improve conversion rates by analyzing consumer preferences. By providing streamlined dashboards and integrating information, technology is also assisting individuals in the retail industry in gaining an in-depth view.
Ensures personalized experience
According to Mckinsey, 80 percent of consumers seek personalization from retailers as personalization now encompasses the entire customer experience.
Customers want brands to cater to their specific wants and desires. Every engagement with your brand adds to your customer’s profiles, allowing you to better service their requirements and increase brand loyalty. To give clients a better experience, these communications should be contextualized, tailored, and promptly useful.
Retail is being transformed by automated retail technologies such as robots, drones, and automatic checkout, according to Emerj research. Drones can slash delivery costs by 86 percent, warehouse robots can cut human labor expenses by 70 percent, and over half of buyers would use unattended checkout due to speed advantages alone.
Strengthen marketing efforts
Data processing and analysis can streamline retail marketing efforts. You begin to comprehend how different levels are unlocked. The appropriate customer data educates your marketing campaigns about what the customer values most.
You can use a range of sales strategies, such as discount coupons, testimonials, and money-back guarantees, for things you already know your customer is interested in by properly understanding your customers.
A retailer’s ability to collect and analyze data from all phases of operations is enabled by successful transformation. It reveals trends, patterns, resource consumption, waste, and bottlenecks from all departments in an easily readable and actionable format. It means you can see specifically where profits are being wasted, and processes are becoming obsolete.
Digitalization in the retail industry is not only an innovation but also demonstrates where new ideas are needed across the board.
Some other benefits are: –
- Retailers could use digitization to improve their in-store and online experiences. Brands may provide unified, individualized customer service using big data analytics, location-based services, eCommerce, and mobile apps.
- Technology advances at a breakneck speed. Building and maintaining the flexibility required for future success will rely heavily on the capacity to quickly leverage digitalization initiatives.
Top Tech Trends That Are Transforming the Retail Industry!
Below, we’ve put up a list of retail technology trends to watch in 2022 and beyond. Have a look!
Customer service bots are also becoming more popular in the retail industry. Customers nowadays prefer texting to phone conversations, making AI bots more relevant and useful.
Chatbots, for example, can improve the customer experience by resolving issues without the need for human participation. This retail technology trend is an excellent approach to connect customers’ offline and online experiences.
Read More: Retail Chatbot Development for your Business
By 2022, voice shopping will count for $40 billion in consumer spending in the United States.
Consumers are moving to speech channels for product search, purchasing, and comparison shopping, with voice assistants like Google Home, Apple Siri, and Microsoft Cortana gaining traction.
Consumers may search for products faster, more comfortably, and hands-free with voice assistants, providing a new dimension to your retail approach.
Augmented reality (AR) is a technology that will completely change the way people purchase. It allows the physical and digital worlds to merge. There are a variety of augmented reality applications available today. They’re typically used to apply fun filters to real-time selfies.
In the retail industry, augmented reality is becoming a far more valuable tool. Augmented reality (AR) is becoming a term in the e-commerce industry for a variety of reasons, including immersion, engagement, and efficacy.
Customers can leverage augmented reality to visit virtual showrooms, digitally touch, feel, and explore items, and this can provide a compelling incentive for them to visit your online store, completely changing the buying experience. Customers can virtually try on items or visualize how a piece of furniture would look in their home.
Contactless stores refer to a set of techniques and service experiences that retail chains have deployed to reduce customer friction and delays at numerous touchpoints, as well as human contact throughout the buying process, E-commerce, purchase online, pick up in-store (BOPIS), self-service checkout kiosks, NFC-based payment cards, mobile wallets, and cashier-less checkout experiences like Amazon’s GO is an example of technologies and procedures that facilitate a contactless buying experience. Retailers may need to assess bandwidth availability depending on the degree and scope of contactless shop installation.
To function effectively, contactless stores necessitate a slew of technologies. Computer vision, artificial intelligence-enabled cameras, RFID strips, infrared lead sensors, microphones, and mobile apps all work together to allow customers to stroll into a shop and walk out without having to check out.
Readmore: Omnichannel Customer Experience Guide
Virtual fitting rooms
Retailers can use virtual fitting software to generate custom-sized charts that help clients identify the sizes and style profiles that best suit their needs. This technology is particularly advantageous for fashion retailers, as it allows customers to “test on” and purchase goods without having to leave their homes. It’s being taken advantage of by big merchants like Adidas, with good results.
Two-way QR code
According to Businesswire, the number of individuals redeeming discounts through QR codes will reach 5.3 billion by 2022, indicating that this is a technology trend worth investing in.
Retailers profit from the adaptability of two-way QR codes since they improve the whole shopping experience for customers while also collecting data on their activity. Instead of receiving basic information by scanning a QR code, the Two-Way QR code gives a more engaging experience by delivering information that is relevant and specific to the scanner. Customers who scan the QR code, for example, may receive customized product recommendations based on their previous interactions with the retailer.
Retailers can use facial recognition technology to understand their customers’ preferences better. As per Forbes, facial recognition can be used to track customer behavior in stores, establish demographics, and even detect theft. Retail business executives can build a store layout that is most productive for their customers by observing where most customers initially go in stores.
Big data analytics
The demand for big data analytics solutions increases in tandem with the amount of data collected by businesses. Consumers now produce data points at the point of sale when they use credit cards, redeem rewards, and scan product barcodes. Data collection is no longer limited to product and customer purchases; all activities, including social media and purchasing habits, are included in big data.
Businesses can use the data they collect to understand more about their customers and what they want and need. Patterns can be discovered, and accurate data can help people make better judgments.
Businesses that do not evaluate their data using advanced analytics technologies may find themselves in the dark. Large retailers, for instance, have collected a plethora of data on their customers and business processes. They understand which aspects of their companies are successful, which items sell well, and how to improve their operations. They also comprehend what their competitors are up to and where they should focus their resources in order to stay on top.
With the rapid progress of technology, the retail industry has become very competitive. The key things that the industry chooses to focus on are satisfying client needs and providing the finest purchasing experience. The retail industry may now grow quicker while spending less money, thanks to technological advancements.
Business executives that can handle all of the changes, integrate various technology, and develop fresh possibilities for their business will stand out among their competitors. If you’re confused about which trend to follow or want to choose retail software development service for developing a retail solution, you can contact us.
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