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2019 Retail Trends: Transactional to Relational

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As the world changes, so does customer behavior. And as customer behavior changes, the ways they want to shop do, too. And perhaps no industry needs to remain more on top of shifting customer trends and behaviors than retail.

Retail, which has already been turned upside-down by the advent of e-commerce, now must adapt to whatever 2019 has in store. With U.S. retail sales up 5.9% in 2018 from a record mark of $5.7 trillion in 2017, retail brands will need to stay sharp to keep growing. According to Daphne Leprince-Ringuet of WIRED, here are some key trends retailers should consider when looking towards the future.

Sustainability Will Be Important to Shoppers

From “hippies” to countercultural “hipsters,” environmental responsibility and sustainability have always been important to certain shopping demographics in society. But in 2019, ecological sustainability will become a major selling point for brands and retailers looking to see a little more “green” themselves. Leprince-Ringuet cites the example of British luxury fashion brand Elvis & Kresse, which reclaims thousands of tons of out-of-service fire hoses in London each year, repurposing and recycling the hose leather to create new premium goods.

“We live in the age of the circular economy, recycling materials instead of letting them go to waste at the end of their life,” Leprince-Ringuet says. “It’s [already] an upcoming trend in retail.” Brands that can position themselves as environmentally sustainable could bolster their profits, too.

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Removing Friction with Strategic Partnerships

With competition stiffer than it’s ever been, and most markets increasingly saturated with choices, brands will need to continue to compete on the strength of their customer experiences – not just on price and product. In fact, a recent PwC study found that consumers will spend an average of 16% more for a better retail customer experience. And that may mean exploring new strategic partnerships for many brands. “Everything we do needs to be done for the customer, to remove friction – whether that means integrating Google Pay, or working with [partners] to develop technologies we don’t have the capacity to work on ourselves,” says Cliff Cohen, Chief Information Officer at ASOS.

What other sorts of “frictionless” experiences will customers expect?

  • “Invisible” payment. Look at Uber. With payment linked directly to customers’ credit cards, users never even think about paying for their ride. It’s taken care of automatically. And that removes part of the friction that makes Uber so attractive compared to, say, going to an ATM and calling a taxi.
  • Multichannel experiences. Today, customers expect brands to recall the entire history of that shopper’s interaction with them and be able to offer them promotions, coupons, and suggestions based on that personal history. And if your brand can’t do this today? Partner with someone who can. Citing one retailer’s strategic CX goals, Leprince-Ringuet says, “The technology is beyond the retailer’s technical capacity, so the company has teamed up with [a strategic partner] – all with the goal of making the customer experience better.”
  • Third-party payment. Not unlike “invisible” payment, millennial consumers are increasingly comfortable storing their payment information with a third-party and allowing that third party to provide that information when they “pay” for things, like Mint and Apple Wallet. This functionality can help make your brand stand out from the crowd.

Physical Stores Becoming Experience Centers with Innovation

With the online purchasing process faster by-and-large than in-store for many brands these days, brick-and-mortar stores are shifting to effectively occupy a new role: experience centers, where customers can touch, try, taste, and be tempted by your products in person. “Future retail is moving from transactional to relational,” says Emilie Colker, Executive Director at IDEO. “Brands will use the offline space to create more opportunities for people to connect with the products.”

For many brands that were once digital-only, like by-mail eyeglasses retailer Warby Parker or online mattress retailer Casper, creating physical spaces for shoppers to interact with their products adds authenticity to their brand’s perception, and is a clever way to create customer experiences that they just can’t replicate online. And to succeed with experience centers, retailers need to be agile, flexible, and ready to innovate. “In the current climate, speed matters,” says Kerry Liu, CEO of Rubikloud. “Tools that can give retailers insight into inventories, financial forecasts, technological skill,” anything that helps create a single point of visibility into marketing supply chains will be tremendously helpful.

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Yes, retail is changing.

But by understanding the most important retail trends before they happen, and by establishing partnerships that prepare your brand for success, companies of all sizes can make 2019 their most successful year yet.

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Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

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Retail Marketing Trends to Watch in 2018

2018 is set to be a big year for the retail industry. New tax laws mean many brands are reinvesting in their marketing efforts and looking for ways to stand out from their competition this year.

By keeping a few select trends in mind, and properly prioritizing the efforts that add value for their customers, retail marketers can stay ahead of the pack and realize more revenue. That’s according to Pamela Danziger of Forbes, who shares the most important marketing trends that retail experts have predicted for 2018.

Shifting Roles for Brick-and-Mortar

Brick-and-mortar stores for decades were by default the main revenue source for retailers, and online and e-commerce avenues supplemented these operations. “In the early days of the internet, retailers incentivized shoppers to spend money online by offering lower prices at their websites,” says Danziger.

Now, customers simply expect to find lower prices online, as well as a more convenient point-and-click shopping experience. “To justify the expense of their brick-and-mortar stores, retailers need to start giving time-starved consumers a reason to travel and shop in-person,” writes Danziger. These “reasons” now often include gifts with purchase and special in-store promotions.

Further, brick-and-mortar stores are poised to continue shifting towards becoming “experience” centers, with “experiential” marketing booming in importance. “Giving customers a deeper and more differentiated brand experience,” writes Danziger, is the new big value proposition for brick-and-mortar retailers. Using eye-catching displays, print and promotional materials, and special point-of-sale branding will help draw customers back into brick-and-mortar stores.

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The Rising Role of Marketing Logistics

As Danziger describes them, logistics are “not the sexiest topic in retail, but logistics will be a defining issue in 2018.” She explains that “as shoppers come to expect that all of the best stores are omnichannel, the ability for brands to deliver products quickly and painlessly will separate the strong from the weak.”

Well-managed marketing logistics, made possible by a highly-optimized marketing supply chain, allow brands to be truly responsive to customer demands and proactive about upcoming trends.  It also enables them to offer their customers value-adding perks, like in-store pickup, promotions, and branding mirroring what they’ve experienced online, and engaging, easy-to-navigate displays. “Nobody wants to revisit a brand that makes shopping feel like work,” Danziger writes.

By partnering with a trusted marketing logistics expert like NVISION, your brand can consistently deliver these high-value retail experiences on-time, within budget, and in a way that builds loyalty among your customers. That’s one 2018 trend that everyone can get behind.

Subscribe to the Blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE