The COVID-19 pandemic shifted the retail experience, possibly forever. Nearly three years after the onset of the pandemic, retailers adapted to consumer demands, offering improved online experiences, cashless establishments, and new automation tools at checkout.
And yet, for all that’s changed, some things continue to stay the same.
Several “retail trends” from decades ago stay true today: Shoppers continue to want a personalized experience and show loyalty to stores who treat them like a human — not a number. In addition, word-of-mouth marketing continues to influence the future of retail, with a direct correlation between positive reviews and a retailer’s success. Below, we share six retail industry trends that will hold true in 2023 and beyond.
Whether you’re a rising startup or a family-owned business open for generations, you need to stay on top of retail trends. Below, we share how to create a personalized, interactive shopping experience to attract new buyers and retain loyal customers.
Since the onset of the COVID-19 pandemic, more establishments have gone cashless, only accepting debit and credit cards as payment. According to a 2021 report by Square, Inc., the number of cashless establishments doubled from February 2020 to February 2021 in the U.S., Australia, Canada, and the U.K. Plus, in 2021, 74% of Square sellers accepted contactless payments (up roughly 10% from just one year prior).
What does this mean for retailers? Cashless transactions are here to stay. Even before COVID, cash usage was on a gradual decline, falling from over 50% of transactions in 2015, to roughly 40% in 2019. To attract repeat patrons, business owners need an easy, convenient way to collect card payments.
Today’s shoppers want retailers to treat them as a human being — not as potential revenue. Potential customers expect the retail industry to understand their own unique wants, interests, and needs, and to build a personalized experience based on that data. According to research by Salesforce, the majority (66%) of customers expect companies to know their unique needs and expectations. And yet, only 34% believe that companies treat customers as unique individuals.
Elevating the customer experience at an individual level requires time, energy, and internal resources — which puts a strain on small business owners. To create a personalized in-store experience, free up employee bandwidth by leveraging automation tools.
You can implement self-checkout kiosks so former cashiers can work the floor, greeting customers as they enter the store, inquiring about what they’re searching for, answering questions, and guiding them to the right section. Encourage team members to move throughout the store to assist more customers versus standing stationary at the checkout.
Even before the pandemic, online shopping was on the rise. In 2019, global online sales reached $3.35 trillion (or 13.6% of total retail sales). By 2024, this figure is expected to nearly double, reaching $6.39 trillion in online sales, representing 21.8% of total retail sales.
Retailers can meet customers’ demand for a superior online shopping experience by, one, investing in a user-friendly e-commerce platform and, two, by offering various pickup and delivery options.
Online e-commerce platforms should allow buyers to shop just as they would in physical stores. Organize your product line by category, and have a search feature so online shoppers can easily find items of interest. If you have delivery staff, implement same-day delivery (or consider hiring delivery personnel for peak seasons, like the holidays). Otherwise, create an omnichannel model where shoppers can purchase items online then do curbside pickup at your brick-and-mortar store.
Social commerce is on the rise, with more consumers learning about products and/or services through social media platforms. According to a survey by the NPD Group, consumers are discovering new products through platforms like Facebook (41%), Instagram (35%), Pinterest (21%), and TikTok (15%) before making a purchase in-stores or online.
To attract new buyers, ensure your retail business is active on social media. Conduct market research to discover where your target audience “hangs out” online. For example, if you target a younger generation, like Gen Z or Millennials, you might find success by partnering with influencers on TikTok or Instagram, while a strong presence on Pinterest or Facebook might help you attract Gen Xers or Baby Boomers. Likewise, if you run a B2B company, you might want to launch campaigns on LinkedIn.
Customers want to quickly find products they discovered online within your retail store. Attach barcodes to each product so employees can quickly look up in-store products for consumers. Educate team members on which products went viral online to help improve the customer journey in stores.
Over the past several years, consumers made a shift toward “voting with their dollars.” Research shows that 82% of shoppers want a brand’s values to align with their own, and roughly 75% reported parting ways with brands whose views didn’t align with their own.
To increase sales both online and offline, look at the vendors you stock in stores. Do these brands take a similar stance on social justice, environmental, and sustainability issues as your primary audience? If not, you may need to rethink your vendor partnerships throughout your supply chain.
In addition, if a particular vendor has undertaken considerable ESG (environmental, social, governance) initiatives in the past year, highlight them within your marketing strategy. Consider hosting an Instagram Live or a webinar with a vendor transforming society for the better to deepen your connection with potential buyers.
For decades, word-of-mouth marketing influenced consumer shopping habits. Today, consumers aren’t just leaning on recommendations from those they know — they’re listening to those whom they’ve never met. According to a recent survey, a staggering 95% of consumers look at online reviews before shopping, and over half (58%) say they will pay more for a product with positive reviews.
To optimize sales in stores and online, solicit happy, loyal customers for positive reviews. Launch an email campaign where you offer a special coupon to any customer who reviews your company online.
To create a larger pool of happy customers, shift your business model to free up employee bandwidth. Consider implementing new technology where customers can conduct self-checkouts, allowing team members to shorten checkout lines, eliminate human error, and offer better assistance to in-store shoppers.
Today’s consumers seek a personalized, efficient shopping experience — both in stores and online. To shorten customer queues, free up personnel, and create a better buying experience, consider implementing a self-order kiosk.
KioskBuddy poses a win-win experience for shoppers and small business owners alike. With KioskBuddy’s functionality, you create a contactless checkout to keep shoppers safe while offering a more personal experience on the floor. To learn more about KioskBuddy and how it can help attract new customers, start a free trial today. Or, if you have additional questions on how KioskBuddy can better serve your store, schedule a quick call with our expert team.