5 TRENDS EMERGING IN THE EVOLVING RETAIL SCENE
Retail, at its core, is a transaction between a consumer and a provider of a product or service. It will always serve to facilitate the meeting of needs and desires, however the way that this takes place has changed dramatically over the last few decades. Our day-to-day lives are saturated with information, making us more informed and providing almost limitless options on our path to purchase. This in turn has forced retailers to consider new ways to communicate and engage with their market, making it more important than ever they stay ahead of the game to meet the growing needs of the consumer.
To make sense of these changes and what they mean for the retail industry, we’ve singled out 5 of the most important trends to have emerged over the last few years that are impacting the way we buy and sell.
1. THE EMPOWERED CONSUMER:
The digital revolution is responsible for the democratisation of information: we have unlimited knowledge at our fingertips, accessible to us wherever we are, and we are literally swamped with buying options.
Our growing need for faster and more convenient transactions to fit with the pace of our lifestyles demands greater openness in the way products are created, a higher level of engagement, and unique, personalised experiences.
Brands can no longer rely on their name alone or traditional channels of communication with their customers; an open information environment means that consumers want to discover and learn before they purchase.
The relationship between the brand and the consumer is now a collaborative one, and the customer’s desire to engage should be cultivated at every level of communication.
The empowered consumer wants to be reached at the moment when they are thinking actively and paying attention; According to Google’s Zero Moment of Truth, engagement with the customer today is understanding that you must be present in a conversation when they want to have it, not when you want to.
As online purchasing informs the consumer, it also provides highly useful information to retailers in the form of data.
Data insights can be used to improve marketing strategies, identify sales opportunities, meet customer’s needs and expectations, and improve the overall experience.
Every customer wants their retail experience to benefit them, defined and dictated by their preferences; data enables this level of personalisation.
When utilised effectively, data has the potential to build new, ‘living’ services that adapt and change to the needs of the individual.
Retailers who make use of smart data are able to create a ‘context’ that is targeted and highly relevant to the consumer; this can be delivered to the customer at exactly the right moment in exactly the right place.
As mobile technology advances, it is increasingly a means of discovery for the consumer; studies show that mobile investigation and assessment are happening before the customer sets foot inside the store.
The sales of mobile devices and time spent on these devices already outpace the traditional PC market; figures show that almost 20% of consumers are making purchases whilst in store using their smartphones (IDC 2014), and almost 50% (Cisco, 2014) of all shoppers use mobile devices as an integral part of their shopping experience.
‘Show-rooming’ is a growing trend in mobile users, with 70% of consumers checking prices on their phones and 53% looking for deals whilst in store (IDC, 2014).
When it comes to consuming content, smartphone users are eager to do it anywhere, anytime. The trend of ‘digital snacking’ is both a result of and a contributor to shorter attention spans, and the switching between multiple channels of information which is now commonplace.
Retailers who wish to respond successfully to the ubiquitous mobile trend need to provide a sharp and relevant online presence in collaboration with their offline stores, recognising that the mobile shopping space is separate from the bricks and mortar shop, and that both need to work in cohesion in order to provide the consumer with a valuable experience.
The rise of the social consumer is one of the most significant outcomes of the digital age, because it presents a challenge to e-commerce players; social media giant Facebook boasts a user base one sixth the size of the world’s population, yet remains unable to effectively monetize its audience.
Marketing and news find us through online channels and social media; the message must be crafted carefully by media companies to trigger an emotional reaction, making us want to share and re-share it.
Social networking and the trend of sharing information means that consumer decision-making is a more collective experience than ever before; online reviews, social media channels and blogs results in consumers relying on objectified opinions and digital word of mouth to inform their purchases.
Brands that effectively address the increasing sociability of retail are strong in their online presence and boast top-level engagement with their audience; social connectivity is key to survival and success in the current market.
5. THE EXPERIENCE FACTOR:
Retailers are now in a position where they both have the opportunity and are required to provide their customers with a highly valuable overall experience that offers much more than the product or service alone.
The role of the store is no longer about the transaction but about the interaction; retailers should create an emotional connection between their customers and their brand; inviting people to linger and enjoy social experiences on premise is a powerful strategy.
The evolution of retail marketing has meant that the relationship between a brand and consumer is no longer one-dimensional “push” advertising, but a collaborative experience that provides highly relevant and targeted material.
Omnichannel retailing focuses on creating a seamless balance between in-store, online and mobile shopping experiences, by making use of data collection to improve consumer’s online behaviour as well as point-of-sale retail technology.
Understanding your brand is the first step; developing ways to communicate this is the second step; and the final stage is providing an integrated experience that engages consumers at each level of their shopping experience.
WHERE DO WE GO FROM HERE?
Digital and mobile technology has been hugely disruptive to the retail industry, creating consumers who are educated, socially engaged, and demanding. The experience offered by retailers must centre on this new consumer reality, and traditional methods will give way to new ways of creating and enhancing an interactive experience. While e-commerce may very well take the lead in the number of sales transactions, stores will evolve to become multi-media showrooms, distribution centres, and destinations for consumers to network and engage with other consumers and the brand itself.
Retailers best positioned for success in the current and future markets will focus on offering consumers a value-based experience defined by convenience, collaboration, and choice.
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