(Expansion) – For retailers, 2022 holds both promise and challenge: it could be a banner year for shopping, with e-commerce on the rise. But they will have to overcome some obstacles, including supply chain problems, staffing shortages and the unpredictable trajectory of the pandemic.
They will also need to consider new consumer patterns and expectations, the aim and purpose of the industry moving forward, and the increasingly important role of technological innovation in their business strategy.
The analysis called “The retail landscape in 2022: conquering the challenges of the future” found elements that could help rebuild or strengthen customer relationships to maximize success in 2022 and have a clearer vision of the future. In it, they highlight five changes to take into account to meet short-term objectives.
1. Personalization is a requirement and requires data
To keep up with shopper expectations, retailers need to offer a near-personalized approach, with high-quality content, data-backed recommendations, and even specific products.
Personalization depends on the data. Strategies for collecting product attributes should be considered to create a comprehensive data library that uncovers customer needs, preferences, and intentions.
Then combine that data with other data (demographics, purchase history, loyalty programs, etc.) to create a robust customer genome: a living profile that evolves in real time to provide an accurate picture of your customer. That is, create smart personalization strategies.
2. Stores are here to stay, but their purpose is changing
The goal of brick-and-mortar stores is no longer to move product, but to provide brand-building experiences and deepen customer understanding, and customers want to go to stores that make shopping easier and faster for them. The key is a hybrid model: physical stores that offer a different experience.
Another change shaping the future is the rise of the store as a media model, with retailers using a combination of technology (QR codes, smart mirrors, smart screens, digital signage, and mobile phones) to transform stores into shopping machines. interactive and immersive marketing, designed to send personalized messages and promotions.
3. Customers are independent of the channel = generate omnichannel strategies
Consumers expect seamless shopping experiences: if something goes wrong, they can walk away from a store or brand forever. So then, retailers need to adopt omnichannel strategies that keep customers connected and engaged at all touchpoints, enabling near-continuous data collection that will help drive more personalization and customer insight, and find new ways to engage with customers. add value.
Technology plays an important role in creating hybrid experiences. Retailers are leveraging a combination of AI and AR to create memorable and meaningful moments. As such, more retailers are likely to strive to become single platforms, aligning inventory, pricing, and shopping information across channels.
4. Gen Z write the future and care about brand values
Generation Z expects brands to understand and meet their expectations, and they are accelerating the pace of brand innovation. This generation tends to be an informed shopper, especially when it comes to health and beauty. With multiple tutorials at their fingertips, this generation is eager to find and distribute information. As such, social media, including live trading, will continue to grow in importance for retail traders.
Another belief, which transcends generations, is the importance of diversity and inclusion, as well as transparency. Therefore, retailers must invite customers to understand their supply chain, manufacturing processes, product ingredients, etc., in order to meet this expectation and demonstrate their own brand values.
5. Tech Partnerships Could Make or Break a Retailer
Given the responsibility of delivering personalized omnichannel experiences, leveraging advanced technologies, and continuously collecting and activating customer data, brands are increasingly relying on technology partners for innovation projects, data collection, and more. Building the right tech stack and ensuring the right experience will help them stand out from the pack.
While no one can predict the future, it is clear that as an industry we must rewrite the old rules of retail and adapt agile and flexible tools and processes to understand and keep up with market changes.
Those who stay focused on building and preserving strong customer relationships and mastering the use of data and technology to create exceptional experiences will be the ones who emerge victorious.
Editor’s note: Sampo Parkkinen is the CEO and founder of Revieve®. Follow him on . The opinions published in this column belong exclusively to the author.
