Top Tech Mantras for Retail industry Success in 2022

Retail companies like most other sectors today have realized that to become successful and competitive, it is imperative to leverage technologies and apply them in their operations.

Going forward, we will see a dramatic increase in the deployment of new-age technologies, for efficiency, innovation, agility in addition to cyber-security.  Some Reports reveal the shift from physical outlets to online has accelerated around five years during Covid-19 pandemic.Extensive internet penetration and digital transformation enables retailers to enjoy all the advantages of what the online world has to offer.

Furthermore, the consumers across target groups are enticed by free deliveries, unlimited catalogs, multiple payment modes, easy returns, rural outreach, same-day delivery and more importantly the omni-channel experience among others.

In 2022, we will see an increase in the number of retail organizations deploying technology to connect better and profitably with their customers.

 Predictive Shopping is seen as a big thing

Retail industry players’ focus is more on customers, technology and general market forces that predict the future of their businesses.  With data collection from various sources about customer’s shopping patterns, availability of the product and its demand, retailers can predict the next purchase.  This is possible with Big Data and Analytics, which leverages AI and ML technologies.  Such analysis can assist retailers to benefit from the vast market opportunity.  Predictive analytics provides customer insights to enable retailers to understand and cater to the former’s needs.  Retailers can then sketch the shopping experiences of any specific target audience and gain customer loyalty leading to significant increase in sales.

According to Allied Market Research, the global big data analytics in the retail market generated US$4.85 billion in 2020 and is estimated to reach US$25.56 billion by 2028 at a CAGR of 23.1% from 2021 to 2028.

Immersive experiences grow in demand

Millennials are known to value experiences over material things with today’s consumers largely belonging to this group followed by digital natives driving retail brands to prepare to deliver better and immersive experiences to customers in 2022.  Technologies, such as Virtual Reality (VR), Augmented Reality (AR) and Extended Reality (XR) are leveraged to attract buyers by providing engaging, immersive and memorable experiences.

AR helps to create the right mix of real-world and digital shopping environments, and with technological innovation, the possibilities are innumerable.  From AR-powered virtual changing rooms to try-on clothes and various other customization options, such as for colors and accessories are some of the applications among many others.

Hyper-personalization gains further traction

As a good number of customers in 2022 are eagerly waiting to return to the physical stores, retail organisations are designing smarter ways to personalize the Customer Experience, consistently.  Research and experimentation to develop the relevant kinds of experiences that a consumer expects, is the key.  Today, the era of hyper-personalization, every customer wants to be made special.  Brands should strive to understand the customer’s needs and respond with the product accordingly, with advanced data analytics.

A research by Boston Consulting Group, personalization is crucial to convert occasional shoppers to regular customers.  Leveraging advanced personalization methods can become a key indicator to measure success in marketing efforts of the retailer.  Customizing content, product offerings and providing experiences in real-time are the various ways to treat customers as unique individuals.  Retailers have to analyse trends and customer behaviors to offer personalized customer experiences.  AI, Big Data and ML support in creating personalized experiences and will be leveraged by the retail community to stay ahead of the curve.

Deloitte reveals 80% of customers prefer to buy from brands that provide personalized experiences with hyper-personalization estimated to deliver up to 800% ROI.

Dramatic increase in CDPs

With customers demanding consistent, personalized experiences, the primary objective of the retailer is to offer the best Customer Experience.  This is possible only by getting access to relevant information and data of the customer from different sources and transforming it into actionable insights.

Customer Data Platforms (CDPs) can support in providing better marketing experiences by helping manage customer data.  CDP market size is increasing exponentially according to recent research reports.  Year 2022 will see a demand for CDP from business organisations.  These Platforms will consolidate all the relevant data pointers about the customer to provide a single 360-degree view of the individual.

Delivering personalized experience to customers could increase the probability of a repeat purchase by 50%.  A successful implementation of CDP can reap 5X ROI towards marketing spends.  CDPs can provide better visibility of the customer’s journey, help develop targeted marketing campaigns and enhance customer loyalty with long term customer success.

Retail industry is in the forefront of technology adoption in the digital age.  In the Year 2022, there will be a right mix of physical and online stores to provide the required customer experience for the omni-channel experience-seeking customer of today.

(The author Anjna Bhati is Director Data Analytics and AI, BluePi and the views expressed in this article are her own)