The COVID-19 shutdown has flipped the retail world on its head.
To be sure, no one knows what the future holds. Whether things go back to how they were or some kind of “new normal” emerges is anyone’s guess.
But no matter what happens, retailers aren’t starting completely from scratch as the world starts to open back up.
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Rather, we’re likely to see a number of trends pick up right where they left off before the coronavirus reared its ugly head.
In this article, we’ll revisit a Deloitte article written before the shutdown that discusses the retail marketing trends to look out for in 2020 and beyond. For each, we’ll talk about why the trend came about in the first place, how the shutdown affected it, and what you can do as we move forward in these uncertain times.
Let’s dig in.
Retail Marketing Trend #1: A Quick and Convenient Shopping Experience
The modern consumer thrives on convenience and ease—especially when it comes to the actual act of shopping.
As Deloitte explains:
“People want to ‘outsource’ the work of getting products. Instead of focusing on the act of purchasing products, they want to focus on the act of using them.”
And this makes sense. As consumers, we derive value from the products we buy after we buy them—not while they’re sitting on a shelf waiting for us to find them.
For retailers, then, it’s crucial to bring your customers value from your products as quickly as possible.
The shutdown has ramped up the need for a quick and convenient shopping experience across the board. Presently, consumers aren’t looking to take their time browsing through brick-and-mortar retail stores; they want to get in and get out with their purchases as fast as they can.
As expected, the shutdown has led consumers to become even more reliant on eCommerce retailers—with convenience playing a major role in the equation. From Amazon and Target to smaller online stores, the nature of eCommerce has enabled many digital businesses to continue providing some level of convenience to their customers throughout the pandemic.
Shutdown or not, your goal is to figure out what your customers want when shopping in your store—and make it super easy for them to get it.
Retail Marketing Trend #2: Digital Merchandising and the Omnichannel Experience
A huge part of providing convenience is in seamlessly delivering information to your customers.
For eCommerce retailers, this means product information management and digital asset management are more important now than ever before. Many online retailers have begun relying on AI-assisted technology to deliver relevant information and offers to individual customers based on their specific needs.
Online retailers are also focusing on ensuring that their digital content is displayed effectively, regardless of the platform or device a customer uses to view it. Because the average consumer typically uses numerous devices along their path to purchase, it’s vital that eCommerce retailers create an omnichannel digital experience that’s completely device-agnostic.
The brick-and-mortar retail world is seeing digital merchandising become more prevalent in a number of ways. We’ve talked before about how stores like Nike’s House of Innovation are revolutionizing the brick-and-mortar scene—and this trend is only likely to continue once the shutdown ends.
Digital interactive signage is also becoming a reality in retail and grocery stores around the world. Cooler Screens, for example, allows stores to showcase beverages and other refrigerated products in an innovative and engaging way.
For one thing, this allows brands and stores to showcase contextually-relevant ads and draw consumers toward specific products. Additionally, these highly visible digital displays cut down on the consumer’s need for hands-on browsing—something that retailers will need to be conscious of even when things start to open back up.
(As data from Clickz shows, stores that have adopted Cooler Screens’ technology have seen a twofold increase in sales of refrigerated products.)
With this increased use of digital signage, retailers must now be more connected to the brands whose products they sell. The idea is for both parties to become aligned on what information is being showcased to the customer, and how it’s being showcased at locations.
Again, this goes back to digital asset management. Both retailers and brands need to set a standard for their digital signage that ensures the content is delivered as effectively as possible.
With a strategic approach to digital merchandising in place, your customers will be able to quickly find what they’re looking for—and get on the fast-track to conversion. Add to that a comprehensive omnichannel experience in which your customers can dive deeper into your brand’s content on their own, and you’ll almost certainly keep them engaged and moving forward in their buyer’s journey.
Retail Marketing Trend #3: Strategic and Automated Demand Fulfillment
It’s no secret that the modern consumer doesn’t typically love waiting to receive a product once they have their heart set on it.
For retailers, the idea of providing such instant gratification can cause a number of logistical challenges. From stockouts to deliverability issues, a lot can go wrong on the way to fulfilling a customer’s order as expected.
Deliverability issues can also lead to spoilage and other problems that can essentially render products worthless. Unfortunately, we’re seeing this play out in the food industry as the current global crisis continues to unfold.
In recent years, we’ve seen companies attempt to tackle these issues in a variety of ways. In fact, one of the key reasons the D2C sector recently exploded is because the nature of direct-to-consumer retailing allows brands to take more control over the supply chain.
Regardless of what a given retailer’s supply chain looks like, though, it’s essential to keep it running smoothly. To facilitate this, both online and brick-and-mortar retailers are turning to AI and machine learning technology. This allows fulfillment teams to take the guesswork out of their processes, determine the best course of action at all touchpoints, and consistently deliver value to their customers as intended.
Specifically, retailers are using AI and machine learning to:
- Match supply to demand for different geographic locations
- Streamline all stages of the fulfillment process, from receiving to delivery
- Own the narrative around product availability and deliverability
Regarding this last point, the idea is for retailers to become more transparent and open with their customers as far as fulfillment goes. Among other benefits, increased transparency can help soften the blow should things not pan out as hoped, and can also lead to more authentic marketing campaigns revolving around urgency and scarcity.
Rather than manufacturing scarcity (e.g., showing “only ten items left in stock” when that isn’t actually true), AI- and ML-powered retailers can create messaging based on demand forecasts and actual stock levels. Not only will this enable a quick purchasing decision, but it’ll also leave customers better prepared should they not be able to order their desired product at the current moment.
One last fulfillment-related trend to mention is the increase in BOPIS (buy online, pick-up in store) and similar options that allow customers to receive orders on their terms. We’re definitely
seeing more retailers hop on board this trend throughout the shutdown, as it allows customers to quickly get in and out of stores with minimal public exposure.
Again, these trends were already picking up steam before the shutdown began. The current crisis has made it even more clear that strategic fulfillment will factor into the success of your retail company both now and in the future.
Retail Marketing Trend #4: Data-Driven Everything
As AI, marketing automation, and other technology continues to advance, keeping data at the center of your marketing efforts is only going to become more crucial.
For one thing, the data you collect—on your customers, your competitors, and your industry as a whole—provides concrete evidence upon which to base your marketing decisions. This, of course, will make your path to success clear as day.
Secondly, in collecting high volumes of quality data on an ongoing basis, your team will become more responsive to both large and small fluctuations within your industry, allowing you to quickly become a driving force.
It’s too early to tell if things will go back to normal, or if the Coronavirus pandemic is ushering in a new era of retail marketing altogether.
What we do know is that for the time being, things have changed drastically throughout the retail world.
Wrapping Up
It may feel like the global shutdown has caused the retail world to undergo a “hard reset” of sorts.
Though the current landscape doesn’t look much like it did mere months ago, many of the strongest trends throughout the retail world persevere still. Retailers must continue adapting to these trends based on the current circumstances we’ve all found ourselves in.
So, your marketing team has two goals here:
For the short term, stay laser-focused on your customers’ needs and expectations as they become acclimated to the current situation.
For the long term, take what you’ve learned in the past and throughout these turbulent times to continue providing top value to your customers.
Retail trends will come and go—whether due to a global pandemic or a simple shift in tides. The successful marketing team knows it’s not the trend, per se, to pay attention to; it’s the reason the trend came to be in the first place that’s worth noting.
If you can identify why a trend has come about, you’ll easily be able to stay ahead of the next one coming down the pike. As a result, you’ll always be a step ahead of your competitors—and become the brand your audience relies on to fulfill their needs at all times.
