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Fast-forward four years from now and there will be a very different set of shoppers who have adopted a very different way of shopping.
The pace of change is faster than ever and shows no sign of slowing. Combined with economic growth, this makes retail an exciting place to be, but to keep on top and compete effectively, marketers must have their eye on the future.
Retailers have to revamp, and in some cases, reinvent their businesses to successfully respond to the new ways we are all shopping, turning challenge into opportunity.
To prepare for a new era of retail in 2020, here are three key themes to consider.
Pace of technological change
It’s hard to keep abreast of the amount of change. Technologies come and go, sometimes before consumers have even had chance to get used of them – QR codes and Google Glass are just two of the casualties. Here are a couple of trends we anticipate are here to stay.
Know me love me– Particularly prevalent among millennials, there’s an increasingly high expectation that once shoppers have provided their details, they expect to be known and recognised – to be loved. Insight and data are key to differentiation, but they must be used wisely, and to the benefit of loyal customers – recognise and reward with tailored and personalised marketing, products and offers.
“Insight and data are key to differentiation, but they must be used wisely, and to the benefit of loyal customers”
Sue Benson, The Market Creative
Geo-targeting– While geo-targeting, or location-based marketing, has been slow to emerge, its ability to help retailers bridge online and physical stores by delivering useful content and promotions to customers in close proximity, should put it on your wish list for 2020.
Consumers in charge
Overriding societal changes affecting consumers have heightened their position, putting them well and truly in charge of their relationship with brands.
One button shopping– A convenience society is placing greater emphasis on devices becoming simpler to use. One button shopping is gaining traction in the US with apps enabling pizza delivery in a ‘single-tap’ and favourite household goods can be re-ordered using the Amazon Dash Button.
This is about focusing on how you can use digitisation to make shopping simpler, easier and tuned to personal preferences.
“Social and shopping are already intrinsically linked, and the depth and sophistication of this relationship looks set to develop even further”
Sue Benson, The Market Creative
Social– Social and shopping are already intrinsically linked, and the depth and sophistication of this relationship looks set to develop even further.
Savvy retailers are already seeing large increases in social commerce sales, to captialise you must ensure your social channels are integrated into every step of your customers’ journey.
Brands fighting back
In a market driven by consumer demand, brands are working collaboratively to create rich experiences. As a result some wonderful trends are emerging.
Faster together better together– For a bricks-and-mortar retailer moving to an extensive omnichannel approach it will be daunting, expensive and present a significant skills gap. This is one example of where collaboration can be invaluable; think eBay collection points in Argos and Starbucks in Uniqlo.
The question for all businesses with no doubt stretched budgets and resources must be, whatever the function – ecommerce, fulfilment, data – why build your own when you can either buy-in the almost finished article or collaborate?
“But the key to successful experiences is successful brand building; the marriage of customer insight and knowing what motivates customers with brand strengths”
Sue Benson, The Market Creative
Community experience– Experience and theatre have long been talked about in retail because of their power to engage and encourage dwell time.
But the key to successful experiences is successful brand building; the marriage of customer insight and knowing what motivates customers with brand strengths. Increasingly the strongest brands are being built through their retail community.
Rapha Cycle Club is one success story. The future of retail will be about consumption, but also about having a community and a shared experience.
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