How top brands deliver personalized retail experiences
Personalized retail experiences drive customer loyalty, brand engagement, and the bottom line. See what brands are getting it right.
All signs point to 2024 being a pivotal year in the evolution of the retail industry. From the seamless integration of omnichannel experiences to the revolutionary use of AI for personalized customer engagement, the retail sector is undergoing a transformation like never before.
In 2024, omnichannel will be more important than ever for retailers, according eMarketer Insider Intelligence.
“Retailers should know where their audience is discovering products, where they’re learning more about them, and where they’re buying them,” analysts said. “No matter if that’s all happening in one channel or if it’s happening in many, any time a consumer interacts with a brand, it should feel consistent and flow from one interaction into the other.”
We’ll take a deep dive into four key omnichannel retail trends reshaping the industry:
- Seamless omnichannel retail experiences
- AI-driven personalization boosts retail
- Integrating IoT, AR, VR
- Data, data, data
From the groundbreaking impact of AI-driven personalization to next-level technology integrations and data-driven decision making, we uncover how these trends are redefining the way businesses connect with, engage, and satisfy their customers.
Whether you’re a retail veteran or new to the industry, this exploration offers a glimpse into the future of retail.
1. The rise of seamless omnichannel retail experiences
There was a time when brands could get away with inconsistent messaging and branding, and disjointed user journeys. In the early days of multichannel marketing, siloed teams and data meant that many email campaigns went out the door that didn’t quite line up with social. Or customers showing interest in Brand X’s denim jackets would be bombarded with spam about their new range of summer loafers.
Those days (thankfully!) are long gone. Customer expectation is at an all-time high and will only get higher as more brands strive to deliver a cohesive shopping experience that bridges the gap between online and offline, making this a top omnichannel retail trend in 2024.
Personalized shopping journeys are no longer a “nice to have”
Imagine walking into a store where the salesperson knows your name, style preferences, purchase history, and even your budget constraints. It might sound like a dream, but it’s quickly becoming the new retail reality.
However, recent research from SAP Emarsys reveals a startling truth: 40% of retailers are struggling to deliver relevant product recommendations.
The key to overcoming this challenge? Deep customer knowledge.
It starts with customer data and our ability to unify it and create holistic customer profiles. These profiles help retailers break down data silos and build a thorough understanding of how customers are engaging across both digital and physical channels. This way, they can provide customers with relevant product recommendations, delivered via channels customers engage with frequently.
The days of generic shopping experiences are fading fast, giving way to personalized omnichannel journeys tailored to each individual’s preferences and needs.
Merging the digital + physical for omnichannel retail
With each passing year, the boundaries between the digital and physical worlds become more blurred. In the early days of the internet what we did online stayed online. Nowadays, our digital selves are present in the physical world every time we tap our cards, order an Uber or walk into a retail store.
This is especially true for customers who frequently use digital wallets. Mobile wallet campaigns are an effective way for retailers to connect customers’ physical and digital selves. By sending digital vouchers, coupons and tickets direct to customers’ mobile wallets, retail brands can drive footfall in-store, identify those customers in-store, and know information like their product preferences and purchase history at a glance.
Integrated touchpoints boost customer convenience
The integration of touchpoints across channels is crucial for improving customer convenience. This means creating a network of interconnected touchpoints – from websites, mobile apps, social media platforms, to physical stores – that all work in unison.
For example, a customer’s online shopping cart should be accessible from their mobile device, allowing them to pick up where they left off, regardless of the channel. Similarly, customer service should be unified across platforms, ensuring that a query raised on social media can be seamlessly addressed in-store or via an app.
2. AI-driven personalization boosts omnichannel retail
AI has undergone some truly staggering leaps and bounds over the past two years. Though people are often quick to point out the many bizarre, inaccurate and nonsensical outputs tools like ChatGPT are guilty of producing, when you consider the fact that five years ago a small handful of people even knew this technology existed, it’s impossible to know where AI will take us in five years’ time.
Ironically, while it’s difficult for humans to predict where AI will go next, AI is becoming increasingly proficient at predicting human behavior.
Omnichannel retail trend: Predicting customer actions with AI
Predictive AI is enabling marketers to send emails with product recommendations that feel like they’ve been handpicked by a friend. Retailers are doing this by using sophisticated algorithms to analyze past shopping behavior, browsing patterns, and purchase history.
In a sense, AI is undoing the decades of harm that blanket, one-size-fits-all marketing campaigns did to consumer trust. It’s the death of spam.
This trend makes good on the original promise of marketing: connecting customers with products and services that improve the quality of their lives.
Which is the long way of saying if you aren’t actively integrating predictive AI into your sales and marketing strategy, you need to bump that up your list of priorities in 2024 because as any AI pundit will tell you, “AI won’t take your job (READ: customers), but someone using AI will.”
Personalized product recommendations
What if every product recommendation you saw online was tailored to your tastes, interests, and budget? That’s the power of AI in the retail world.
By using machine learning algorithms, retailers are now able to offer personalized product recommendations that resonate with individual customers, and are carefully curated based on their unique preferences.
This omnichannel retail trend not only enhances the shopping experience but also increases customer engagement, loyalty, and, ultimately, sales.
Instantly answer customer queries with AI chatbots
There’s no quicker way to annihilate your brand’s reputation than to make an angry customer navigate a tangled maze of “Press 1 for…” prompts and endless hold music. AI-powered chatbots are changing all that.
These chatbots are revolutionizing customer service by providing immediate, 24/7 support. In some instances, they’re coded so seamlessly that humans aren’t even aware they are speaking to a bot.
Whether it’s a question about a product, a concern about delivery, or assistance with a return, these intelligent chatbots can handle a wide range of queries efficiently. The result? A smoother, more satisfying experience that keeps customers coming back.
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3. Omnichannel retail trend: Integrating IoT, AR, and VR
The world we live in is much like an onion. The physical world we inhabit is the surface layer. Underneath that are an infinite number of digital layers all interacting with one another seamlessly, invisible to the human eye.
Technologies like augmented reality and virtual reality have the ability to make the digital visible. AR enriches the world around us by superimposing a layer of information onto the physical world. This can help us find our way in a new city, for example, or see information about items we’re browsing in a supermarket.
IoT makes its mark on the retail landscape
Imagine your fridge notifying you when you’re running low on milk and then suggesting adding it to your click-and-collect basket at your preferred grocery store. Tap “yes” on your smartwatch and it’s done.
IoT is connecting everyday objects to the internet, enabling them to send and receive data. This integration is revolutionizing retail in ways we never thought possible.
This trend means that in the not-too distant future, we could well be living in a world where tills, both human operated and automated, become a thing of the past. When you combine intelligent shelf technology with sensors using IoT technology that can accurately identify opted-in customers, you could simply enter a grocery store, pack a basket with the items you need and walk out while your bank account is seamlessly debited in the background.
IoT can also be used to optimize inventory management and offer personalized promotions based on in-store behavior. The potential is enormous – from smart shelves that alert staff when stocks are low to interactive dressing rooms that suggest clothing based on preferences and previous purchases.
AR + VR create next-level customer engagement
Sure, the VR future we’ve been promised seems to be approaching at a snail’s pace, but VR naysayers would do well to remember that it took 15 years for touchscreen technology in phones to reach a point where physical buttons started disappearing from devices.
Can you picture trying on clothes or testing furniture in your home without ever leaving your couch? AR and VR applications are making this a reality.
These technologies are creating immersive shopping experiences that are both engaging and informative. AR allows customers to visualize products in real-world settings – like seeing how a sofa looks in their living room before buying it.
Meanwhile, VR offers a fully immersive experience, such as a virtual tour of a store or a 3D product demonstration. These powerful tools are bridging the gap between physical and digital retail, providing a unique and interactive omnichannel shopping experience.
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4. Data-driven decision fuels omnichannel success
In a world inundated with data, how are successful retailers turning this information into actionable insights that give them a competitive advantage? The answer lies in data-driven decision making, a cornerstone of high-performing retail marketing and a top omnichannel retail trend in 2024.
Data-backed insights power real-time personalization
Imagine being able to adjust your marketing strategy on the fly, responding to real-time customer behaviors and market trends. This agility is now a reality for retailers who leverage data-driven insights.
By analyzing customer data, retailers can quickly identify emerging patterns, preferences, and behaviors, allowing them to tailor their marketing efforts in real time. This approach not only enhances customer engagement, but also ensures that marketing strategies are aligned with customer needs.
Close partnerships between marketing and IT
Synergy between marketing and IT is crucial in today’s retail environment.
SAP Emarsys research highlights this trend: 82% of surveyed companies now hold regular, routine meetings between marketing and IT departments.
Furthermore, 88% are streamlining their data infrastructure to reduce dependency on IT, while 85% use interdepartmental shadowing to foster better understanding and collaboration. This partnership is essential for harnessing the full potential of data, ensuring that both departments work together to drive innovation and customer satisfaction.
Omnichannel coordination + execution
But what are the tangible benefits of this data-driven, omnichannel approach? The results are compelling.
Our research found that 46% of surveyed firms saw an increase in customer lifetime value, 35% observed higher customer retention, and 45% witnessed increased customer engagement. These statistics underscore the significant impact of a well-executed omnichannel strategy, one that’s informed and constantly refined by data.
AI: Turning raw data into customer insights
A significant 59% of businesses surveyed are now integrating insights from sales, marketing, and IT, thanks to AI. This technology is a game-changer, transforming raw data into valuable insights that power deeper customer engagement and foster long-lasting loyalty.
By leveraging AI, retailers can gain a more intimate understanding of their customers, personalize experiences more effectively, and make smarter, data-driven decisions.
Staying ahead of the curve
The competition in retail is relentless, so brands have to do everything they can to cut through the noise and remain relevant. Keeping up with constantly changing customer expectations and rapidly advancing technology is essential.
With the right approach to omnichannel marketing, retailers can future-proof their business by engaging customers with personalized experiences that drive loyalty that lasts.
