Retail Industry Digital Marketing Today
Digital marketing is one of the biggest mistakes that retailers can make in this age of rapidly changing technology.
Brick-and-mortar retailers must think about selling their products and marketing them in the digital market if they want to grow and be competitive with more prominent organizations. Online marketplaces are visited more often than physical stores, and customers make larger purchases. To thrive in this industry that is rapidly evolving, retailers today must integrate digital marketing strategies into their business plans.
In retail, there is a direct link between revenue and marketing. Due to the absence of digital platforms, retailers worldwide miss thousands of business opportunities every year.
Retail marketers can use digital marketing to gain a competitive edge. Businesses are more likely to attract and convert their target audience if they use a combination of offline and online marketing channels.
Retail Industry Challenges
Technological advancements have given consumers a lot of power. With a variety of options, todays consumers have more ways than ever to find products and services.
Retail has become more challenging and competitive as a result of digital expansion. Three elements are essential for businesses to consider.
Customer Expectations
Modern customers are used to a variety of online platforms and expect them to be able to make purchases from any location at any time.
Customers who need help making a purchase are more likely to become dissatisfied with the product and move on to another retailer. Retail marketers need to improve the customer experience to meet client expectations.
There are More Competitors
The competition in this industry has grown fierce with the emergence of global digital retailers. In the past, businesses may only have had a handful of competitors.
Due to globalization, they will likely face hundreds, or even thousands, of rivals. Marketers need to improve their competitive advantage by using digital marketing to provide the best value for customers.
The Importance of Digital Marketing in Retail
The digital marketing revolution has changed consumer perceptions. A digital marketing strategy and conversion rates is essential for any business to thrive and remain competitive.
Retail businesses can benefit from a well-planned strategy of digital marketing in a variety of ways. These are some of the key benefits.
Customer Experience Enhancement
No matter how big or small the retailer is, they need to invest heavily in digital marketing. This will ensure that buyers have a great experience.
The user experience includes everything from pre-purchase to post-purchase. To maximize efficiency and convenience for consumers, every interaction with the brand must be seamless and pleasant.
New Opportunities to Leverage
Retail marketers now have many new opportunities available to them that they did not previously. Now, companies can attract customers beyond geographic boundaries, lower their marketing costs, improve support services, and more.
To maximize potential, retailers must take advantage of all these tools.
Brand Metrics: Improve your Brands Performance
A strong brand can help retail businesses stand out from their competitors. By investing in branding awareness, reputation, image, and other aspects, digital marketing allows a business to enhance the perception of a product or service among customers.
Increase Conversion, Retention, and Acquisition Rates
Other digital platforms can be used by retailers to connect with prospects and customers at the best time and place and to retain and acquire clients.
Businesses can interact with customers in a personal way to promote purchases.
Unify Your Team to Beat the Competition
With digital marketing, small- and medium-sized businesses can compete with large retailers even if they have limited resources.
Retailers with a small budget can easily reach customers across the country and promote their brands.
Ten Retail Trends that Will Impact the Retail Industry by 2023
E-commerce is gaining in popularity, even though many people still visit stores. More than 25% of people in the world shop online, and 75% do so at least one time a week.
When we look at the whole customer journey, nearly two-thirds of all shopping trips (63%) begin online. Digital marketing is, therefore, a critical factor in attracting customers via online media at the start of their purchasing journey.
Many retail businesses have been forced to concentrate on their web presence due to the stiff competition among brands.
Online retail sales may be lower than those in stores. Still, the e-commerce market has grown significantly in recent decades. This trend is expected to continue shortly.
You can get a good idea of the retail landscape in 2023 by looking at trends. You can prepare better strategies for your business by knowing which trends will impact the market and which you could apply to you.
Trends will also give you a better idea about what customers expect from companies like yours.
You can, for example, come up with solutions to address the needs of consumers who will demand more privacy protection and data security.
By staying up to date with retail trends, you can identify new growth opportunities. This will help you beat the competition and we can hire a digital marketing consultant.
Shortly, what can consumers and retailers expect? The retail industry will be impacted by several emerging and continuing trends in the next few years.
Retail Media: The Rise of Retail Media
In 2023, retail media will be a significant new digital channel. Retail media networks are being leveraged by major retail companies such as Amazon, Walmart and advertisers to increase revenue, reach out to new audiences and diversify revenue streams.
Retail media networks can also provide insight into the future of stores, including their performance (in-store impressions and visits).
In the future, retailers will use off-site media to reach customers, utilizing different formats such as streaming TV.
By 2024, media spending on retail is expected to reach $60 billion.
Focus on Privacy and Data Protection for Consumers
In 2023, it will be a top priority to find ways of protecting consumer data and privacy. The threat of cyber-attacks is the main reason for this move.
Retail is the top target, and there are concerns about how social media channels and websites collect and use consumer data. Other factors come into play, including consumer awareness of how their data will be collected and used, as well as companies need to provide better choices to customers, giving them an edge in the market.
To meet this need, the government is stepping in and enacting laws such as the General Data Protection Regulations (EU-GDPR) and the Consumer Privacy Act to safeguard consumer privacy.
In addition, retailers are adopting the latest technology to safeguard customers from fraudulent transactions.
Expect to see more and more companies stepping up privacy initiatives. This will bring with it challenges, such as how best to collect consumer data and gain potential customer trust.
Shop Hybrid
Hybrid shopping channels, which combine physical and digital experiences, will likely grow in popularity by 2023.
In the US, 75 percent of consumers are omnichannel users. They do their research online stores and make purchases in both offline and online channels. In addition, many consumers still do their research on the internet before purchasing a particular product.
This is why retailers need to provide seamless hybrid experiences for their customers.
Flexible Payments
Consumers today expect retailers to provide more options for payment. Retailers must therefore step in and introduce new payment methods other than credit cards.
Layaway or Buy Now, Pay Later plans are two options.
TikTok, Gen Z, and Social Commerce: A Significant Impact
TikTok users, particularly Gen Zs, have been a critical driver of this social proof growth. Its expected that by 2023 there will be ten million additional social buyers on social platforms.
The King of Personalization is Still You
Brands can offer their customers unique experiences through personalization. Businesses can leverage personalization to influence the purchasing decisions of their audiences, boost engagement, cultivate customer base, loyalty, drive sales, customer reviews, customer engagement and increase revenue.
It would be best if you had a strategy to prepare you for this new trend. Consider technologies that will help you collect data to improve your personalization.
Round-the-clock Customer Support
Businesses will be able to provide better customer experiences by providing 24/7 support. More than delivering exceptional customer service is required.
Your customers should be able to contact your company at any time, from anywhere. Youll have the ability to address any customer concerns immediately, preventing their escalation. Here, new technologies, like AI and chatbots, can be used to provide superior customer service.
Metaverse: The Metaverse is Growing in Popularity
Metaverse will play an essential role in the future retail sector. Its estimated that Gartner estimates that 25% of the population will be spending at least an hour a day on Metaverse by 2026.
By 2026, 30 percent of companies will have product reviews and services that are metaverse ready.
Empowering Workforce
In 2022, workers left in droves. In July 2022, 4,18 million Americans left their jobs due to factors such as low wages and poor working environments.
In an attempt to provide better solutions for their employees, retailers have come up with innovative approaches to employee empowerment. In the future, we will likely see retailers using new technologies to automate or streamline tasks and create better work environments.
Read More: What is Digital Marketing? How to leverage Digital Marketing?
Ship Transparency
Consumers are attracted by free shipping and rapid delivery. Transparency in shipping can also be a critical factor in logistics, which will help to build customer loyalty and attract new customers.
Customers want to be informed about delays and shipping times. Seventy per cent of consumers will not continue to do business with retailers who dont tell them about delays.
Retailers should strive to provide customers with realistic and clear delivery dates. Retailers should also use new technologies or tools to provide accurate information about shipping and delivery.
Retail Trends for 2022 that Will Last Until 2023:
1. Despite the Pandemic, Consumer Sales have Been Henerally Strong
The worlds economy will gradually reopen in 2021. Deloitte describes it as "the high street reopens. Retail management strategies are helping many consumers to shop more because there are so many non-essential shops.
Spending money that would usually be spent on travel, they are instead spending it on home improvements and consumer product description. In many places, restrictions are being relaxed on the hospitality industry.
There is Still a Threat of Store Closures
In the last couple of years, weve seen a flurry of closures. The trend started long before the COVID outbreak and became inevitable when online shopping took off.
The pandemic, however, has increased the trend, especially with the closure of shops for long periods in lockdowns.
This trend is not likely to be reversed by a return "to normal" after COVID. While the rate of closure may be decreasing, many closures will continue to occur.
According to analysts, we could see more closures of stores in 2023 due to inflation and an upcoming recession. Some mid-tier retail stores may have to close their doors as sales start slowing.
2. Move Towards Online Shopping
Online sales have increased as a result of the closing down of brick-and-mortar stores.
In 2022 the US eCommerce spending grew by 10.8% YoY in the third quarter, totalling $251.71 Billion. The exact numbers in 2021 were $227.23.
Amazon Prime Day was one of the factors that contributed to the growth. It fell during the third quarter instead of the 2nd as is usual.
Many retail stores now adopt a "digital-first" approach. They place more emphasis on their digital store than their physical shop.
These retailers have heavily invested in digital technologies and built warehouses that are only available online.
3. Most Consumers Expect free Shipping and Fast Delivery
There currently needs to be a connection between the expectations of consumers and COVIDs reality. Despite the fact that consumers are doing more shopping online than ever before, they want to receive their orders as quickly as possible.
Many online retailers, including Amazon, are working hard to speed up deliveries.
COVID, unfortunately, has caused a global shipping crisis with delays in delivery. We should see an improvement in global logistics as we transition away from COVID.
Average delivery times will also drop.
Online shoppers cant resist free shipping. Ninety per cent of online shoppers say that theyd shop more frequently if free shipping were available.
Additionally, 24 % of consumers say theyd spend more money to get free shipping. Free shipping companies have 20% more conversions than their counterparts without it.
4. The "At-Home" Economy Expands
The "at-home" economy was born during the pandemic and appears to have remained, even though restrictions are being loosened.
The consumer has shifted spending to areas like home cooking, shopping online, and digital products.
There may be fewer people working at home today than there were a year earlier, but many still enjoy not having to commute.
They continue to do so at least two days per week.
5. Retail Spaces are Being Redesigned to Make Customers Feel Safe
Stores have redesigned their space to separate customers and make them feel safe. Some of the changes will be reversed once COVID is gone, but many others will stay in place.
Customers still prefer brick-and-mortar stores. They love the experience of shopping in-store and like to interact physically with products prior to purchasing them.
They need to be safe, however, before entering a shop.
This can range from simple changes, such as installing Perspex screens in the checkouts, to more complex changes, like rearranging the layout of the store with different entrances and exits.
6. Increased Use of Self-Checkouts in Stores
Self-checkouts are one example of a store redesign.
Customers will enjoy a more convenient shopping experience with self-checkout. Some shops have moved from using static POS counters to mobile payment systems.
Forty-five per cent of retailers have expressed interest in adopting self-check-outs instead of traditional cash registers.
Self-checkout kiosks are not only beneficial to consumers and retailers. Self-checkout kiosks allow retail associates to concentrate on higher-value and more complex tasks.
81% believe self-checkout areas offer better experiences for customers.
7. Paying with Contactless Cards is Growing
The popularity of contactless payments is expected to continue growing in the near future. The market for contactless payment terminals is projected to be worth it.
Chatbot is one obvious example. According to estimates, 91% of Internet users engage with chatbots every day.
8. The Use of Voice Search and Personal Assistants is Increasing
Voice search and the increasing use of personal assistants are other specialist applications for AI.
Google reported that 27% now perform a voice search on mobile devices. Millennials and Generation Z prefer to speak on their phone rather than typing.
9. The Popularity of Live Streaming Has Grown
Live Streaming is an excellent way for consumers who shop online from home to engage. The consumers spent hours watching influencers and celebrities host entertaining shows about various topics to promote sales.
10. The Seniors Finally Adopt New Technology
Seniors are traditionally the last to adopt new technologies. In their last years, they are resistant to change because they have lived most of their lives without technology.
Seniors are also the most vulnerable to COVID, and they have been forced to adjust to the post-pandemic world.
Pandemics have forced older adults to adopt retail technologies, such as telehealth and online shopping. Others have turned to smart devices, such as home assistants and digital cameras, to get around nursing homes.
Even as the economy opens up, this trend will continue.
11. The Popularity of Private Labels is Increasing
Private-label products are now the first choice for many budget-conscious consumers. They would prefer to pay a lower price for an unbranded product that works well than pay a higher price for one with a brand name.
Private-label products are not just for the rich anymore. Private label sales now exceed branded product sales by three times.
Private label products are more profitable for retailers than branded goods, allowing them to make 25-30% greater margins.
12. Instacommerce: Increased Social Commerce on Instagram
Instagram is the most sophisticated (Western-based) social network for social commerce. Instagrams announcement about Instagram Shopping and its ability to purchase directly from the app itself is groundbreaking.
Now retailers can easily make their products discoverable via Instagram. Your story can be told, and your products highlighted. The moment people discover your products, they can begin to shop.
This will propel them along the buying journey.
Social commerce allows retailers to personalize and customize the shopping experience. A checkout on Instagram or other social sites allows retailers to offer their customers a one-stop-shop experience.
Brands can then interact with their customers, offer personalized discounts, get feedback and ultimately sell without ever having to leave Instagram.
13. Omnichannel Marketing is a Common Practice Among Retailers
Weve written before about the rise of Omnichannel Marketing. Businesses that adopt omnichannel marketing strategies have 91% higher customer retention year over year than those that do not.
Nearly 50% of consumers regularly use more than four touchpoints.
Instead of focusing solely on one or two channels, many retailers and firms now spread their marketing campaigns over multiple platforms.
A brand may reach a consumer through different channels depending on where they are in their buying cycle. Omnichannel marketing doesnt just mean using different channels to run a campaign. Your marketing channels should interact so as to provide a seamless experience for the customer.
Retailers can use AR and virtual reality to enhance the in-store shopping experience and their online presence. You can, for example, use AR to preview products before you buy them.
14. The Importance of Shopping That is Based on Experience Increases
Retailers are increasingly providing more than a product; theyre creating an experience. Due to the increasing popularity of online shopping, especially with big players such as Amazon, traditional smaller stores must develop a unique selling point to stay afloat.
You need to understand your customers, your product, and your store in order to provide them with the best possible experience.
Lidl uses the Treasure Hunt experience as a marketing tool. This allows people to come into the store knowing that they will find unique products and offers, but these items will only be available for a short time.
About 20% of the store is dedicated to Lidl Surprises. This includes a rotating selection of limited-quantity goods.
Some stores are geared towards building community. Some stores encourage customers to read their books in the store.
Last Thoughts
Retailers who optimize their plans using Retail marketing trends can reap huge rewards.
Retailers should seek the help of experts to succeed and thrive in a competitive industry. Professional digital agencies not only help connect buyers with interested products and increase sales, but they also enhance brand awareness worldwide.
A marketing agency can help retailers reap the benefits and make the right moves.
Retail companies are facing increased challenges due to the availability of multiple selling channels, such as company websites, social networks, advertising online, and various devices used by consumers, including smartphones, tablets, laptops, etc.
In the old days, there was only one option for customers to make purchases - by visiting a physical store. There are now dozens of options to find and buy products and services. In the last few years, online shoppers have preferred to shop online over visiting physical stores.
Businesses must be active on all of these devices and channels to maximize their potential.
