While data-driven experience, real-time inventory, AI and regional adaptation are predicted to be critical for in-store retailers.
Payment convenience, same-day delivery, instant returns, and streamlined checkout experiences also made the list for online retailers, while staff training and fast checkout in-store are predicted to be critical for brick-and-mortar providers.
On the predictions, Restive founder and managing director Stuart Oliver said, “Online shoppers are seeking convenience, personalisation and an unforgettable, seamless shopping experience,”
“They’re being careful where they spend their money, and retailers must earn shopper loyalty now more than ever,” said Oliver
“One critical driver of online customer loyalty is sustainability and it’s not enough for the product to be responsible. The retailer, along with their packaging and logistics partners are as important to customer satisfaction and sustainability,”
“The recommerce and marketplace trend also plays into this, with growing demand from consumers for recommerce options for the products they buy and no longer need.” he said.
Restive’s predicted trends for online retailers are (in order):
- Personalisation: from tailored product recommendations to personalised email marketing campaigns, customers expect retailers to anticipate their likes and interests and adapt their marketing and online experience accordingly.
AI is enabling retailers to analyse data points like browsing habits and purchase history which allows retailers to personalise the customer experience and drive loyalty.
In terms of why this is critical for retailers now, 69% of consumers are more likely to shop with a retailer that makes personalised offers. - Same-day delivery and instant returns: Demand for multiple delivery options, including same-day, and instant returns will continue as consumers seek an instant and flexible online retail experience.
- Payment convenience: Customer preference is for payments to be convenient, instant and secure. Mobile payments will soon be consumers’ preferred way to pay worldwide and demand for split payments, gift card integration, deferred payments continue to increase.
- One-click checkout: Most online retailers today offer streamlined checkout experiences to protect their online shop from the 73% of customers who abandon at cart.
Demand for this will increase over the next 12-months with consumers responding well to guest checkout, minimal form fields and one click checkout for returning customers. - Sustainability: Customer preference for sustainable retailers continues, with their expectations extending beyond a product’s sustainability credentials to sustainable packaging, package recycling, carbon-neutral shipping, and the product’s ethical standards.
73% of customers are willing to pay more for sustainable products, with this trend significantly impacting customer loyalty and satisfaction. - Recommerce: Growth in demand for recommerce options from online retailers will continue to build as consumers become increasingly mindful of the retail industry’s environmental and community impact.
- Conversational Commerce: the trends that will build on the popularity of chatbots and messaging apps will be voice and smart home integration that allow for personalised recommendations in real time even when a consumer is away from a screen will soon be essential for online retailers to retain customers.
47% of shoppers are open to buying based on recommendations from a bot, as long as it’s expert advice. Bots for customer support are here to stay as well.
Restive’s predicted trends for in-store retailers are (in order):
- AI: In-store retailers will benefit from continuing to automate repetitive tasks like inventory, pricing, and cashless checkout.
Ai offers retailers analytics and forecasting that can help them navigate the volatile market playing out worldwide right now, while consumers trust Ai for assistance, guidance and helping them save. - Up-to-the-minute inventory: tracking stock levels in real-time between online and in-store will continue to be critical for in-store retailers this year ahead, with consumers expecting to be able check stock levels and view where items are located in aisles and on shelves.
Out-of-stock incidents are still costing retailers millions, so meeting customer demand on real-time inventory is essential. - Data-driven personalisation: in-store data collection via WIFI tracking and loyalty programs will become more mainstream as customers reward in-store personalisation with their loyalty.
Retailers will also increasingly utilise in-store and online data to provide customers with targeted cross-channel recommendations. - Regional adaptation: bricks and mortar retailers need to incorporate localised strategies that allow for localised markets, product preferences, shopping habits and cultural norms.
- Checkout experience: up to 30% of customers are abandoning their purchase due to long queues at the checkout, so more retailers will be investing in intelligent, in-trolley and in-basket checkouts, as well as mobile point of sale systems and native wallet integration for loyalty cards so all customers need to do is tap-to-pay and claim rewards.
- Staff evolution: Shoppers are increasingly valuing in-store staff who are knowledgeable, seeing in-store retailers invest more heavily in training programs.
On the key trends for in-store retailers, Stuart said: “The checkout experience is proving just as important for in-store retailers as it is for online providers, with shoppers dissatisfied with long queues – they’re seeking intelligent check-outs and tap-to-pay.
They’re also wanting help from staff who are well-trained and knowledgeable about their products, so staff need to be a value-add when it comes to in-person shopping and they want real-time inventory, down to the aisle and shelf.
Oliver says personalisation is a key trend for instore retailers as much as it is for online providers, with customers responding to localisation strategies that allow for local preferences and habits, as well as loyalty programs and facial recognition.
“AI has a huge role to play for all retailers as it does in other industries, repetitive tasks can be automated instore and the analytics and forecasting tools,”
“It offers to retailers are allowing them to anticipate the market and trends to a level this industry has never experienced previously.” said Oliver
Restive is Australia’s fastest growing tech consultancy, working with clients including Coles, Sportsbet, Viva Energy, JB Hi-Fi, Liberty Finance and CarSales, among others.
It has delivered 600% revenue growth for a major Australian homewares brand and a leap to $1.5 billion in online sales for one of Australia’s leading retailers.
The tech consultancy has grown 170% year-on-year since its launch in 2018.
Restive, founded in 2018 by Stuart Oliver has expanded from a handful of consultants in Melbourne to an ecosystem of more than 400 tech experts who are masters of their craft and solve clients’ problems with simple, innovative strategies that increase their revenue.
Meanwhile, the company has delivered more than 240 client projects to date for clients across the retail, FMCG, finance and automotive sectors, including 600% revenue growth for a major Australian homewares brand and a leap to $1.5 billion in online sales for one of Australia’s leading retailers.
