Navigating 4 Shifting Retail Trends that Retailers Should Prepare for
Where are the retail trends in 2024 heading? Let’s explore in this article.
Typically, the retail industry is fast-paced and highly competitive. In the present day, the retail landscape is further intensified by the impact of AI, driving changes in the industry. Retailers must constantly evolve to keep pace with emerging trends and technologies.
In this article, Sertis explores four directions of retail trends in 2024 to help retailers prepare to thrive and grow amidst these changes.
1. Emphasizing Hyper-Personalized Experiences
In the past year, AI has played a pivotal role in various aspects of retail operations, particularly in data analysis. This has allowed retailers to derive insights for creating hyper-personalized product recommendations and experiences. As we move into 2024, retailers must continue to prioritize the development of hyper-personalized experiences for their customers. Furthermore, the integration of more advanced AI technologies will enable even more comprehensive and tailored experiences.
In 2024, personalized experiences are expected to become a standard in the retail industry. To distinguish themselves from competitors, retailers must invest in hyper-personalization throughout the customer journey. Real-time data analysis is crucial for understanding customer needs and staying up-to-date on changing trends. Additionally, crafting personalized and compelling marketing messages, tailoring product recommendations, up-selling and cross-selling before checkout, and presenting personalized promotions to influence purchasing decisions and encourage customer retention are essential components of this strategy.
For further insights into personalized marketing, explore more in ‘Personalization in Marketing: The Key to Winning Customers’ Hearts’
2. Utilizing Generative AI for Extraordinary Experiences
Generative AI, capable of understanding natural languages and executing language-based tasks, has proven invaluable in various industries, including retail. It possesses the ability to generate diverse content types, such as images, text, and voices, within seconds. In retail, Generative AI has been successfully applied to tasks such as organizing product data, creating chatbots for customer services, and translating content.
As we enter 2024, customers are increasingly seeking more extraordinary experiences in their retail interactions. The implementation of generative AI enables experiences that precisely match customers’ needs. For instance, generative AI can be employed to create images and generate innovative content ideas, including copywriting, product blog posts, and product descriptions. These generated ideas can then be developed into compelling content. Moreover, generative AI can enhance the capabilities of customer service chatbots, serving as intelligent personal assistants throughout the entire shopping journey.
3. Focusing on Speed
According to Accenture, 64% of customers demand faster retail services across various processes, including product inquiries, shipping, and returns. As we step into 2024, retailers should prioritize accelerating their processes to meet this demand.
Retailers can harness the power of AI to expedite and streamline customer-facing operations. This includes using AI to assist customers, predict their needs, manage inventory, and plan shipments, thereby speeding up customer services and issue resolution. Additionally, AI can be leveraged to collect customer feedback, enabling retailers to better understand customer needs and stay abreast of emerging trends, ultimately enhancing their ability to meet customer demands.
4. Returning to Offline Stores
In recent times, we have become accustomed to the surge in online shopping trends, with goods delivered right to our doors. However, as we approach 2024, there is a noticeable resurgence in offline shopping trends. This shift is driven by the increasing challenges associated with product returns and high shipping fees. According to PwC, 40% of customers express interest in returning to offline shopping due to affordability concerns related to shipping fees and impatience with waiting times.
To address this shift, retailers should strategically refocus on offline stores by creating seamless omnichannel experiences. Furthermore, they need to offer customers hyper-personalization experiences on online platforms while delivering exceptional service in offline stores. Establishing a connected database of customer profiles and maintaining real-time updated purchase histories is crucial for ensuring consistent experiences.
AI can play a pivotal role in organizing and updating customer data in real time. Additionally, it can enhance the online shopping experience by introducing features like the ‘find-in-Store’ option on product pages, guiding customers to the physical location of the product offline. This interconnected approach, facilitated by AI, ensures a smooth transition from online to offline experiences.
For further insights on leveraging AI to understand customer behavior in offline stores, explore more at ‘Maximize Sales by Understanding your Customers with Video Analytics’
Sertis is a leading AI and data solution provider for the retail industry, with a proven track record of successful partnerships with leading retailers. Leveraging our insightful understanding of the industry and expertise in AI and data, we deliver solutions that drive businesses towards a better future, especially during times of change.
Learn more about Sertis’ solutions for the retail industry: https://www.sertiscorp.com/ai-retail
