Evolution in consumer trends are continuing to push retailers in both brick and mortar locations and e-commerce stores to change and innovate at a rapid rate. Shoppers are presently reshaping the retail landscape faster than ever before which is why change and innovation are set to take the stage in retail in 2023. From interactive retail experiences to conscious consumers and self-serve commerce, 2023 is going to be chalked full of innovations in the retail space.
If you want to remain relevant in retail, you must be willing to embrace change and be open to growth. Keep reading to learn about 5 things that retail must get right in 2023!
It’s no secret that sustainability is now more important than ever. As climate change and global environmental catastrophes continue to plague the planet, sustainability is rightfully taking its place in the minds of millions of consumers around the world. Brands that greenwash or fail to take sustainability seriously will be pushed to the wayside as consumers continue to seek organizations that prioritize sustainability in their packaging, supply chains, and operations.
Eco-friendly brands that put the planet first are continuing to win over consumers’ hearts. Take Patagonia for example. Patagonia is one of the world’s most successful activewear retailers that pledges to do better for the planet. With repair centers around the world that increase the longevity of their products and reduce their carbon footprint, Patagonia continues to seek innovative solutions that help minimize their environmental footprint.
Brands and retailers that embrace sustainability have the potential to foster consumer satisfaction and increased loyalty over time when compared to competitors that are lacking. While being transparent and committing your organization to a more sustainable future is a start, 2023 is the time to act.
2. In-Store Automation
Many organizations are beginning to suffer from a dwindling workforce. The great resignation is plaguing industries of all kinds including retail meaning innovative solutions that uphold consumer experiences are a must. Fortunately, automation can be a strategic solution for retailers that are struggling with the labor shortage or looking to provide seamless transactions that mimic online interactions.
While the move towards automation will consist of investments in technologies that leverage (AI) or artificial intelligence to mimic necessary consumer interactions like customer service. AI will also become more prominent in brick and mortar locations to enhance in-store experiences, improve supply chain management, refine consumer journeys, streamline dynamic pricing, and to create personalized customer experiences based on consumer insights.
3. Tech-Enabled Customer Experiences
AI-generated personalized communication was not largely present in retail until recently. As AI continues to see rapid advancements, retailers are beginning to unlock new opportunities to deliver personalized and relevant digital marketing messages enhanced by first-party data in addition to customized in-store and online shopper experiences. As rapid advancements in technology continue to present themselves, retailers must jump on the bandwagon in order to remain relevant in 2023 and beyond.
Unlocking insights backed by AI enables organizations to understand the product and the consumer in tandem which leads to exceptional consumer experiences that lead to a greater level of loyalty. Tech enabled customer experiences are taking the world by storm in a variety of ways including smart screens that digitize the in-store experience, click, and collect services that create a seamless hybrid shopping experience, and self-service opportunities that mimic online transactions. Learn more about why you need AI solutions for personalized retail experiences.
4. Dynamic Pricing
In a post-pandemic world where layoffs are bountiful, and inflation is sky-high, dynamic pricing is now more important than ever. Consumers are becoming increasingly more aware of pricing strategies and retailers are having to be methodical in their pricing decisions. When products are overpriced, retailers run the risk of irate consumers, when they are underpriced, they run the risk of decreasing profits or failing to cover expenses. The key is finding a middle ground that works for both parties.
Introducing dynamic pricing. The solution to dynamic pricing lies in leveraging AI to create dynamic pricing strategies. Through surveys, social-media, and real-time interactive outlets, organizations can leverage AI to adjust their pricing in real-time. AI empowers organizations to analyze the success rate of various pricing models to determine if their pricing strategy is resonating among the indented consumer. This means having the power to adjust pricing and maximize opportunities to increase revenue as trends come and go, competition arises, or demand shifts.
5. Supply Chain management and Inventory Control
Supply chain management and inventory control go hand in hand. Successfully managing inventory enables organizations to meet demand with an appropriate amount of supply and inventory control ensures organizations never run the risk of displeasing consumers when they attempt to make a purchase that isn’t in stock. Technology, particularly machine learning (ML) algorithms can help retailers ensure that the products are where they can be found when the consumers are buying them. AI/ML can also help identify root causes that store operations or supply chain processes can solve either separately or together.
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The key to success for every retail business in 2023 is using data driven insights throughout the entire customer journey to improve user experiences while creating customized, meaningful relationships. Leveraging an AI-first approach, we strive to empower each and every one of our customers to transform into an intelligent enterprise that is equipped to make impactful business decisions based on data. As a pioneer and continuous innovator in the retail sector, we continue to empower businesses to transform into cognitively intelligent enterprises. Interested in learning more? Click here.