Trends and Technologies that Build the Future of Retail

Aug 16, 2022 | Blog

The Future of Retail

The future of retail is constantly changing and evolving with new technologies and trends, and we can be sure that it will continue to do so.

Technology has always played a fundamental role in the retail industry, however never before have technology and innovation been so important to the success of a business.

Nowadays, technology encompasses everything from the administrative aspects of the business, to the relationship with customers and the customer experience.

Customers are using technology like never before and making purchasing decisions in new and different ways. In the future, we can expect even more technological advances that will affect the way we shop.

In this article we will discuss 5 key technologies for the future of retail: some of the trends that promise to continue shaping the retail industry and that should be on the radar of retail companies to anticipate strategic decisions and continue growing.

Important Trends and Technologies for Retail Companies

Being up to date is important, as both the competitiveness and the market position of retail companies depend on it. 

Among the main market trends and technologies, advances in artificial intelligence and machine learning stand out, allowing retailers to better personalize their customer experiences.

Recommendation engines will become more intelligent, capable of making more precise suggestions based on previous behaviors and preferences, in addition to search engines allowing alternative searches such as voice and images increasingly better and more options for retail.

Additionally, virtual reality and augmented reality will play a larger role in retail, offering customers new ways to experience brands and their products.

Retailers will also start experimenting with blockchain technology, which could help them create more secure and transparent supply chains, coupled with RFIDs powered by the Internet of Things (IoT).

Likewise, the ‘hyper’ personalization of experiences will be a key trend, coupled with the so-called Internet of Behaviors (IoB), which emerges as an enabler of customer experiences, as more data is available on customer interactions, not only with brands and products, but with related topics from which an artificial or human intelligence can infer a need.

Taken together, these trends point to a future of retail that is more personalized, immersive, and more efficient and pervasive than ever before.

Upcoming trends  

Stores will continue to use technology to enhance the customer experience, such as the use of interactive displays, apps and social media to connect with customers and ensure the best possible experiences.

A trend that promises to continue is the increase in online sales. More people are buying products online, and this is likely to continue as retailers improve their websites and e-commerce and offer more online shopping options with better experiences.

Another important trend is the Customer Experience, it has been a trend for stores to become more experiential. Shoppers are looking for better experiences when they shop, and retailers are responding by offering more unique store layouts and activities like classes or events.

With more and more people using smartphones, it’s no surprise that mobile payments continue to gain more and more popularity. We can also see more and more retailers exploring Live Selling and Social Shopping.

Retailers who have worked with RFID for their distribution and supply chain know the advantages that the Internet of Things (IoT) brings, both to improve operations and to improve the personalization of customer experiences.

5 Key Trends and Technologies in the Future of Retail

When new technologies and trends come together, wonderful things happen in what we could call Wow moments!

Thus, of all the retail trends and technologies, we select 5 that we are sure will be key for retail companies in the future.

1. Hyper-personalization powered by Artificial Intelligence

Personalization has always been a key element in the retail industry, from person-to-person interactions, informed and empathic feedback on a purchase decision by sales people, to personalization of online channels, powered by intelligence. artificial and machine learning.

Machine learning and artificial intelligence capabilities are growing along with customer expectations for hyper-personalized care.

Boosted by AI, retail personalization offers a unique experience optimized for higher customer engagement as well as higher conversion. Each customer experiences a different version of the eCommerce site, dynamically personalized from the first click.

Beyond CRM, retail companies need to manage and order their data to be able to personalize the experiences of each of their customers, transactional data, demographics, product type preferences, purchase history, loyalty programs, as well as behaviors purchase, providing an increasingly personalized experience.

2. Predictive Analytics to Manage the Supply Chain

Retail businesses will always have a need for faster product delivery and better inventory control. Predictive analytics can reshape supply chain and inventory management by analyzing existing data and customer behavior to ensure that the retail business always has the right stock; that is not understocked, and is not overstocked.

Combined with Big Data technologies and advanced analytics, retailers can improve efficiency on their shelves, through simulations to discover the busiest times of the month and thus schedule inventory management.

3. Augmented Reality and Virtual Reality

Augmented reality allows customers to view products in a digital environment before making a purchase. This technology can be used to provide additional product information as well as customer reviews and ratings.

Virtual Reality has been gaining popularity in recent years, with many people predicting that it will soon become a mainstream phenomenon. Retailers could use virtual reality to create a more immersive experience for customers, allowing them to view products in different settings and learn about them from different angles.

4. Customizable Products

Advances in digital and 3D printing and production technology, allow brands to offer their customers the ability to personalize items, both online and in-store.

Personalization further strengthens the customer experience, inviting them to become part of the product creation process. The Deloitte Consumer Review shows that more than 50% of customers are interested in buying personalized products.

Retailers that offer their customers the ability to personalize products have more opportunities to generate more business.

5. Visual and Voice Search

By combining Artificial Intelligence with Natural Language Processing and Machine Learning technologies, retailers can offer their customers alternative ways to search, using images instead of keywords, as well as enabling better voice search capabilities.

With technologies similar to Google Lens, where you can search for information related to an uploaded image, retail customers will increasingly look to the ability to upload images, for AI to sift through inventory and offer matching proposals.

This is how ASOS StyleMatch works, it finds the perfect match in the store’s catalog, based on an image uploaded by the customer. This way, more and more retailers will be able to allow their customers to interact with their inventory using voice and images.

What can we expect in the future?

The future of retail is exciting and constantly changing. The growth of e-commerce and mobile commerce are trends that are not going away any time soon. On the contrary, they will continue to grow. Retailers need to ensure that their websites and apps are mobile-friendly and offer a great online shopping experience.

The importance of customization is increasing. Customers want to feel that they are special and that their needs are taken into account. Retailers need to find ways to personalize the shopping experience for each customer.

The boom in experiential trading will continue to grow. As the retail industry has evolved, so has the consumer. Today, customers are looking for more than just a product to buy; they want a personalized and unique experience at each point of sale.

Retailers that want to remain competitive must focus on creating an engaging customer experience, achieved by combining technologies that will strategically achieve business goals while keeping customers happy.

It is essential that retailers incorporate innovative technologies that allow them to create better innovative experiences, which their customers want to share with their friends and followers on their social networks.

Get on the trends of the future of retail from the experts.

At Teamwork Commerce we are aware of the most innovative trends and we help our clients to incorporate them into their businesses, improve their operations, their performance and the experience of their clients.

Contact us to schedule a demo and discover how to be part of the future of retail technologies.

https://www.teamworkcommerce.com/demo-request/

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