2020 took so many retail stores by surprise. Entrepreneurs began the year optimistic about the future of retail and restaurants, highly focused on the value of cutting-edge retail technology.
Then, the pandemic changed everything.
While devastating, it was also transformative: A loss of foot traffic pushed businesses — and even entire industries — into the depths of digital transformation. Many retailers were forced to temporarily shutter, negotiate with landlords and vendors, and completely rethink their business models.
But after two years of change, retail locations are finally finding their sea legs. Sales are rebounding as retail businesses find new customers, but that doesn’t mean things have been easy.
Where does this leave retail in 2022? Well, those who adapt, persist.
Ultimately, brick-and-mortar stores are on the brink of a number of exciting advancements — and many of these changes are slated to last far beyond the ongoing public health crisis.
In 2022, brands can expect to see these four retail technology trends persist not only throughout the year but through the next decade as well.
Like it or not, social media plays an integral role in the retail experience, especially for omnichannel brands. Since 2020 brought a surge of demand for online shopping, Facebook and Instagram deployed shop capabilities on their platforms. It’s a trend that’s only going to grow as shoppers demand efficient online checkout options.
Social commerce shops have since become known as custom storefronts — or digital storefronts — that allow consumers to purchase products they see in Facebook and Instagram ads at the tap of a button.
On the retail side, brands can leverage social commerce to:
Build virtual shelves for their online marketplaces and inventory
Offer digital sales
Link ads directly to their e-commerce sites
Talk about efficiency! It’s no wonder retailers are moving away from billboards and radio spots in favor of social media.
But what does this mean for businesses?
Moving forward, retailers can easily sell their products while gathering shopper insights, implementing custom campaigns, and turning to targeted product placement to further connect with their audience.
In other words, they can curate their content in a way that appeals to shoppers who have already converted into loyal customers.
Speaking of social media and retail, let’s take a moment to acknowledge TikTok: the platform that swept everyone off their proverbial feet in 2020.
By the new year, the app touted 1 billion monthly users — a 47% boost from 14 months prior. TikTok has grown a great deal in the last year or so, with many retailers relying on the interactive platform as a high-engagement marketing tool.
The trick?
Retailers are using their own staff to market their business on TikTok. And from here on out, brands can expect to engage their very own employees with this new type of retail technology. Whether it’s via livestream or a hashtag challenge, retailers are turning to TikTok to connect with shoppers outside of physical stores.
For example, makeup giant Sephora preapproved a group of employee influencers (later dubbed the “Sephora Squad” by Vox) to use the platform. Dunkin’ launched the Crew Ambassadors program in the summer of 2020, which is an employee influencer network that pays employees to post on TikTok. And other retail workers are getting active on the platform du jour as well.
Why the massive focus on TikTok? The app has boundless employee influencing potential. And since everyone is glued to their cell phones, it’s good business sense to promote your brand with content. Seemingly innocuous videos can quickly go viral, and the focus on authenticity and humor offer levity despite the new decade’s uncertainty.
Artificial intelligence (AI) has all but disrupted the retail space. The term AI is prevalent in many industries today, but few understand its true meaning.
In retail, AI refers to the automation technologies that allow brands to collect and analyze real-time data. Companies can then go on to leverage this data, predict future trends, and make the most accurate and informed business decisions.
What might this look like? AI-driven shopping generally includes four essential features: demand forecasting, guided discovery, emotional analysis, and customer engagement.
With demand forecasting, brands can leverage AI to mine data from consumers, the retail industry at large, and their competitors.
From there, retailers can use business intelligence tools to predict industry changes and manage their marketing and inventory more effectively. If you need help managing your bottom line, demand forecasting with AI is a must.
Now more than ever, customers want to be confident in their buying decisions. This is where automated assistants come in.
This type of AI-enabled retail technology can guide shoppers through the selection process, making recommendations based on their needs and preferences.
Did you know that AI can interpret customers’ facial, audio, and biometric cues? If you didn’t, you do now — and all retailers should take note.
These interfaces can pinpoint how shoppers are feeling in the moment and recommend the right products (or even offer support) as needed. For example, if you want to know whether your holiday seasonretail display is hitting the right notes, AI emotional analysis will give you the actionable insights you need.
Retail and AI-driven Internet of Things (IoT) retail technology go hand-in-hand. IoT-fueled tech offers deep insights into consumer behavior in the subtlest ways — for instance, by helping brands glean data and make decisions accordingly. That might mean revamping your loyalty programs, overhauling in-store signage, or engaging shoppers with in-store touchscreens.
With the right data on your side, engaging your customer base is a breeze.
Here’s an example: Have you ever placed an order online or via a retail kiosk and come across a list of the business’s “Most Popular” items (or perhaps “Common Pairings”) based on a product you’ve already selected? These lists are more than likely the result of AI-enabled data — leveraged to keep customers engaged and eager to move forward at the point of sale (POS).
Globally, the AI retail market is expected to increase to more than $17 billion by 2028. From behavior prediction to satisfaction tracking, it’s all about using analytics to enhance the consumer’s store experience.
Contactless payments are the future. In any case, they’ve certainly become a pillar of the retail and dining industries. Some say they’re poised to grow even more prevalent in 2022 and beyond.
How so?
A recent study conducted by Juniper Researchreveals that contactless payments will account for more than half of all global point-of-sale transactions by 2025. This is in large part because the retail technology’s speed, security, and ease of use lay the foundation for a truly seamless customer experience. After all, it minimizes the need to pass a credit card back and forth for each transaction, opening the door to options like self-checkout and other new retail technology.
In a retail setting like a shopping mall, contactless payments allow the public to move freely without worrying as much about the health risks that are still present due to COVID-19. These solutions also reduce the need for extra staff, keep things running smoothly, and help lower stress.
Maybe your team is anxious about training employees or about the cost of onboarding an extra cashier during peak hours. Maybe you want to keep your customers comfortable in these final stages of the pandemic. Or maybe you simply want to maximize efficiency.
Regardless of your objectives, a contactless payment solution may well be the retail strategy you’ve been waiting for this year.And with self-service kiosks like KioskBuddy, retailers can put their staff and customers at ease, deliver the flexibility both parties deserve, and focus on what matters most: their core business.
Businesses are transforming the way they market to customers and handle their day-to-day operations thanks to retail technology. With the emergence of social commerce and employee influencer marketing, many businesses are using online storefronts and social media posts to engage with their audiences. Some companies are even using data from AI to better understand and predict trends.
But one way you can implement technology in your business today is by adopting contactless payments through a self-service kiosk. KioskBuddy can help. Start your 30-day free trial with KioskBuddy today.