By Sean Turner, co-founder and CTO, Swiftly
It’s no secret that the retail industry moves fast. Factor in inflation, shifting consumer behavior, and ever-evolving technology, and retailers may find it challenging to plan their next move.
As we respond to the trends that are rising from the ashes of the pandemic, it’s clear that the future of our industry weighs heavily on new technology, agile strategies, and a focus on the customer experience.
The Rise of the Hybrid Shopper
By adopting evolving technology solutions, brick-and-mortar retailers have a real opportunity to thrive. Rising costs have enticed shoppers back into stores, with 90% choosing to complete their purchases in-store. While e-commerce isn’t falling by the wayside, its momentum is slowing. In fact, a recent Mastercard study reported that online retail sales rose 2.2% in May 2022 compared to May 2021. In-store purchases, however, jumped up 13.4%... a sign that it’s time to hustle.
Today’s shoppers have become significantly more tech savvy—and more reliant on their smartphones—and they’re not looking back. While it would seem that domination by e-commerce and retail giants would follow, the reality is very different. Shoppers aren’t willing to give up the in-store experience. Rather, they want online and in-store options that provide convenience and savings
What’s evolved is a hybrid shopper, who uses both options to plan and complete their purchase. According to the 2022 Shopper Experience Index, 64% of consumers have hybrid shopped in the past six months. This positions brick-and mortar businesses to thrive, provided they invest in the technology options available to help them deliver what shoppers want.
The Brick-and-Mortar Advantage
Brick-and-mortar retailers trying to navigate this influx of technology have something the e-commerce giants don’t have: a physical presence. Adding robust digital systems and tools to their existing business will help them compete with their online-only competitors. It will also help them add new customers, build loyalty through personalization, and increase revenue per customer.
When you also consider the fact that customers are opting out of delivery services due to rising fees, the advantage of today’s brick-and-mortar retailers becomes even clearer.
Retailers must choose the right technology partners and adopt the tools that build brand and customer loyalty, while generating new revenue streams. When done correctly, these solutions create the perfect formula to seamlessly bridge the digital and in-store experience, meeting shoppers exactly where they are.
The Customer Is Still King
No matter how evolved technology becomes, we should take our cues from our customers. People want to shop on their terms and to feel connected to the brands they interact with. By giving them an integrated and personalized experience across every touchpoint—from browsing and buying to targeted content and rewards incentives—you’re building a long-term relationship that boosts sales.
Additionally, with shoppers relying on their phone to navigate every decision they make, retailers need to move fast to offer the tools and real-time information they’re looking for. Without a comprehensive technology strategy that links the digital and in-store experience, you’ll struggle to build and retain a loyal customer base.
By adopting the right omnichannel retail technology strategy, you’re showing the forward-thinking agility that’s going to be key to industry survival.
Data Equals Dollars
Not only does the latest retail technology provide your customers with the best shopping experience available, but it offers your business valuable data and added revenue streams that can boost sales, loyalty, and your bottom line.
The first-party data that comes from owning your customer and their omnichannel shopping behaviors can also strengthen your brand relationships, helping them personalize the customer experience based on purchasing patterns. Add to that rich brand content, promotions, recipes and targeted deals and you’re creating an opportunity for success for everyone involved.
By building your own retail media network—and tapping into high-margin retail media dollars—you’re also taking ownership of your share of revenue that can significantly impact your business. It’s estimated that the retail media network market is expected to reach $41.37B by the end of 2022 … where do you want to land in that equation?
Retail media isn’t the only place where data can fuel your bottom line. With the right technology, you can gain access to real-time deep data insights to help you further drive personalization, recommendations and increase basket size.
Clock’s Ticking
To succeed in this new tech-forward environment you need to get on board. The industry has never moved faster, and it will be very easy to get left behind. Find trusted technology partners that have the resources to give you a plug-and-play solution that can compete with retail giants and focus on building lifelong customers through one-on-one connections. Lastly, never stop looking forward. Watch the trends, stay agile and trust that the investment you make now will pave a path to success for years to come.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.