In today’s dynamic world of retail, technology has changed how businesses operate, and customers buy products. Different retail technologies are reshaping this industry from the inside out, streamlining buyers’ journeys, and finding new marketing methods. It’s estimated that the retail tech industry will expand from $22.6 billion in 2021 to $68.8 billion in 2026, tripling in size and growing in popularity.

This blog helps you navigate the intersection of technology and retail, explaining how these trends affect the future of this industry.

Groundbreaking Retail Technology Trends

As a customer’s shopping experience is empowered and customer engagement is evolving, different technologies have revolutionized the world of retail in the following ways.

1.   Artificial intelligence

The dominance of AI in retail has led to the introduction of chatbots, automating customer service. It seems that 95% of customer interactions will be AI-powered by 2025. Predictive analysis, personalized recommendations, and similar AI-driven services are now helping retailers stay competitive.

Moreover, AI allows retailers to bolster logistics, optimize operations, and manage inventory more effectively. For instance, retailers can easily forecast customer demand and adapt their inventory quantities accordingly. AI also gives retailers an accurate understanding of customer preferences.

2.   Managing digital assets

Visual marketing drives every major retailer’s marketing campaign. Inspiring videos and clear-cut pictures influence your average buyer’s purchasing journey and boost your brand’s credibility. Harnessing the true power of your visuals requires a dedicated digital asset management (DAM) system. It helps you deliver the right digital experience to your audience to win their loyalty. Here’s how investing in the Acquia DAM for retail businesses can help you successfully manage your digital assets:

●       Improved content management

Acquia DAM can help retailers to more easily manage their digital assets, such as images, videos, and documents.

●       Using data analytics

Acquia DAM can help retailers to make better decisions about their marketing and product strategies by leveraging analytics.

●       Centralizing your assets

Your visuals are stored in and controlled from a centralized library.

3.   Automation

Automation means letting machines perform mundane, repetitive tasks so human workers can focus more on creative pursuits for their employers. Now, surveys claim that more than 50% of all retail tasks can be automated by reducing human errors and streamlining inventory management.

Similarly, automation can take over several aspects of marketing and promotion, i.e., customers usually respond better to personalized emails, and machines tirelessly go through customer data and produce personalized promotional materials. Automation, therefore, is the future of retail now.

4.   TikTok marketing

Influencer marketing won’t stop growing more influential in the retail industry. However, newer social media platforms will continue to claim the title of the site with the most marketing potential. Today, TikTok dominates the world of influencer marketing with one billion active monthly users. No wonder TikTok users are more likely to purchase a product advertised on the platform than any other brand, even surpassing Facebook and Instagram in their influence over users via:

• Letting retailers create engaging content
• Offering limited-time offers and deals on products
• Starting hashtag challenges to create user-generated content
• Collaborating with other retailers and brands to reach more audiences
• Share positive customer reviews and testimonials in creative video formats

5.   Augmented reality

Augmented reality (AR) provides customers with a virtual experience of brick-and-mortar stores. While bridging the gap between offline and online purchasing, this technology allows people to indulge in a more immersive shopping experience. It makes real-world shopping seem out of the world!

Here’s an example: We know that AR adds computer-generated pictures to real-world objects. So, you can shop for new clothes and then use AR to check how they look on you, i.e., virtually trying them on while shopping. Data shows that over one-half of Gen Z is willing to spend more money with companies offering them virtual fitting rooms.

6.   Omnichannel customer journey

Retailers have to consider omnichannel approaches to reach out to more potential customers. Surveys show omnichannel customers shop 1.7 times more than regular, single-channel consumers.

Omnichannel purchasing makes a buyer’s journey more flexible, convenient, and streamlined, letting them easily switch between online and offline channels like a dream. Similarly, retailers can combine these two channels, providing customers with a blend of online and offline shopping. Give your customers more options in e-commerce to get a competitive advantage over your industry rivals.

7.   QR codes and RFID

QR codes combine the benefits of omnichannel purchasing with effective inventory management. Also, radio-frequency identification (RFID) makes brick-and-mortar stores smarter, allowing customers to not just shop for products but learn about similar items without missing a beat. These technologies are making the retail industry look more futuristic with these fascinating applications:

• Instant shopping: Amazon’s just-walk-out shopping strategy will allow customers to choose a product and just walk out of the shop with it. This gadgetry uses camera sensors to detect the chosen item and deduct payment from the buyer’s digital wallet.
• Product Education: Thanks to RFID, customers can scan the tags on clothes in fitting rooms to learn more about the product, gets details like size, and look for similar items.
• Theft prevention: Retail items are tracked using RFID and prevent store theft.

8.   Cashless shopping

As of May 2023, more than 50% of Americans use some form of contactless payment. It’d be realistic to claim that one day most of the civilized world will switch to cashless payment as the dominant way to pay for services and products. The trend of cashless shopping existed before 2020, but the pandemic accelerated its mass acceptance as it lets customers pay for stuff without fearing cross-contamination.

Many retail customers prefer paying with their mobile phones, showing that even credit cards may get obsolete in the future. That’s why more retailers should provide cashless payment options to potential customers.

Conclusion

This blog discusses some amazing applications of technology in retail that have changed this industry for good. Artificial intelligence, augmented reality, contactless shopping, and influencer marketing are merely a few examples of how deeply technology has penetrated the world of retail. QR codes, automation, and digital asset management (DAM) systems efficiently make a buyer’s journey more streamlined.

Investing in these different retail tech trends is the best way to grow your business in 2024.