Omnichannel Consumers and Retail of the Future

Business 2 Community – Retail is continually evolving to embrace new technology, the rise of ecommerce and changing consumer shopping trends. With these continual changes, the tactics used by retail marketers are also adapting.

The Rise of Ecommerce

eCommerce continues to grow at an unprecedented pace. In 2017 it reached around $2.3 trillion and is expected to hit $4.5 trillion in 2021 (according to a Statista report). In the US alone, ecommerce represents almost 10 percent of retail sales — a figure that is growing by nearly 15 percent each year.

Retailers can’t expect to remain competitive unless they are present on their customers’ preferred channels. Investments in online, digital and mobile channels is a necessity. In fact, eCommerce/digital influences up to 56% of in-store purchases. Many consumers are also shopping online via their mobile devices. As much as 11 percent of online shoppers now shop online via their smartphone on a weekly basis, and 35 percent say it will become their main purchasing tool. (source – Shopify)

Amazon continues to be a major player. According to a report by Walker Sands, a third of consumers (32%) now receive one or more Amazon packages per week, and one in ten (10%) consumers receive three or more Amazon packages per week. Millennial consumers ages 18-35 are even more likely to receive multiple Amazon packages regularly — in fact, nearly half (43%) report they receive at least one Amazon package per week.

The Personalized Experience

Personalization is a top priority for marketers – consumers are in control and want and expect a personalized experience. However, as new concerns over privacy emerge, brands are beginning to take a new look to balance personalization with data privacy.

Despite the many studies that cite consumers want personalized messages, studies also exist stating that consumers only want personalization if it’s done right – meaning not overly creepy or overly invasive. Personalization on their times. This can be challenging for brands – knowing how far to take it and what may be crossing the line.

In a study by Salesforce, 51% of respondents stated that they were more mindful of balancing personalization and privacy than they were two years ago.

Marketing Personalization

McKinsey recently performed a study to better understand consumers’ reactions to privacy. In looking at industries that consumers receive personalized offers from, the industries they receive personalized communications from and those they wish they did are fairly in sync. Topping the list are consumer goods brands, restaurants and bars, and fashion retailers and department stores.

Read the full article: Omnichannel Consumers and Retail of the Future 

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