We’re already almost two months into the year, and even though January felt more like a marathon than a sprint, February seems to be flying by. Experience tells us that we’ll blink and it’ll be December again. So what can we expect from the retail industry in the next 10 months? Which trends are here to stay and what developments are on the horizon?
Let’s take a quick look at the key trends shaping the future of retail in 2023, and how you can take advantage of them to boost your business!
Trend 1: Omnichannel
Gone are the days of keeping your offline business separate from your online business. In today’s world, an omnichannel strategy is essential to satisfying customers and improving their shopping experience.
If you haven’t started thinking about your omnichannel strategy yet, it’s high time you started. Today’s customers expect a seamless shopping experience. Whether they’re shopping online or offline. They want to see the same prices they see online as they do in-store, and they also want to be able to use the loyalty program or discount codes whether they’re using their phone or visiting a retail location.
With a solid omnichannel strategy, you can satisfy those demands by connecting different channels and optimizing customer interactions across all channels for a seamless overall customer experience.
Trend 2: Personalization
You’re probably already collecting a lot of information about your customers, but are you using it? By using this customer data effectively, you can create personalized experiences for your customers that can help to increase their loyalty and willingness to buy.
One way to leverage customer data is to create customer segments based on interaction patterns, purchase history, or geographic locations. These customer segments can then be used to offer customized options, special recommendations or special discounts.
For example, if you know a customer regularly buys your products, you could offer them special deals or discounts to increase their willingness to buy. Or if you know a customer lives in a specific region, you could send them promotions tailored to their specific needs. Overall, using customer data effectively can help you better understand your customers and increase their satisfaction and loyalty.
Trend 3: Artificial intelligence
ChatGPT isn’t the only form of artificial intelligence that’s trending this year. There are other forms of AI that will have a major impact on the future of the retail business. AI has the potential to automate and optimize both back-end and customer-facing processes. This can help your business run faster and more efficiently.
One example would be the personalization of customer service using chatbots. And that’s not all! AI can also help you optimize processes by, for example, analyzing data from customer feedback and making recommendations for improvement. Last but not least, AI can also improve inventory management by automatically placing orders for products with low stock levels. The possibilities are endless! It’s worth exploring how you can take advantage of them.
Trend 4: Subscription models
The subscription economy is growing fast, and it’s not just for B2B anymore. Consumers are open to paying a monthly fee for access to products and services, instead of purchasing them outright. Some customers even prefer subscriptions over a one-time purchase because of the flexibility as well as the cost and time savings involved. The best part? The resulting predictable revenue stream is great for your business!
Trend 5: Embedded products & services
Go beyond your core products and turn your retail business into a one-stop shop by embedding complementary services and/or products into your offering. It’ll give customers additional value and save them time while also giving you a leg up on the competition.
Need an example? Try embedded insurance! With Hakuna, your customers will be able to add product protection to the products they’re buying, right when they’re buying them (at the point of sale). They won’t need to look for insurance separately, and they’ll be able to enjoy their purchase to its fullest because if something happens, it’ll get repaired or replaced.
Interested in learning more about what embedded services like embedded insurance can do for your retail business? Arrange a call with Hakuna today.
Let’s go
As an early adapter, you have the opportunity to differentiate yourself from the competition before you get left behind. So what are you waiting for? It’s time to take a closer look at how these trends (and technologies) can be applied to your business and make the most of 2023!
