Top 11 Retail Technology Trends for 2024

#3 Social Media Shopping

Social media shopping is predicted to gain great popularity, opening vast opportunities for smaller businesses. According to Accenture, social commerce is foreseen to grow three times faster than traditional e-commerce in the next four years. Using their favorite social media platforms, users can seamlessly explore brands and their offers and buy them without leaving. Instagram, Facebook, TikTok, Pinterest, and Snapchat allow retailers to sell items directly through their platforms, reaching their target audience and enhancing social media presence and brand awareness.

Example:

In 2018, Facebook introduced the entire marketplace where businesses are able to create personalized storefronts and promote shopping through the messenger app. Businesses also have the opportunity to receive valuable insights into the shopping behavior of their customers and sell accordingly. 

#4 Augmented Reality (AR) and Virtual Reality (VR)

Augmented and virtual reality are among the latest technology trends in retail as they have many advantages to offer. While users have a better picture of the product that they’re going to buy, they are more likely to convert and have fewer risks of returning the product. Instead of seeing a mannequin wearing clothes in an online store, users can see themselves trying on different outfits to choose what looks the best on them. The level of customization also significantly increases the conversion rates.

Example:

IKEA was one of the first to adopt AR for online shopping with its IKEA Place app launched in 2017 that allows shoppers to place objects in their homes with 98% accuracy. By simply pointing the camera at their surroundings and choosing any object from the IKEA catalog, users can test the size, shape, and appearance of the new item. Such a “try before you buy” experience keeps users engaged and makes them complete a purchase faster and more confidently.

#5 Visual Search

Only a few years ago, shoppers used text-based site searches. Today, the majority choose a faster, and simpler option that also brings great results - they just take a photo of the item they want to buy and upload it to the web. According to market predictions, the Global Visual Search Market is expected to reach over $14,7M and will continue to grow, gaining special popularity among younger generations.

Example:

ASOS implemented visual search into its app called StyleMatch to enhance the browsing experience for its customers. They need just to upload the image of the apparel into the app and they will immediately get the perfect match from the ASOS catalog. The artificial intelligence built in the app is able to recognize over 800 different brands and more than 80k products which helps ASOS widen its target market.

#6 Predictive Analytics

Large amounts of data are generated in the retail sector. With the help of predictive analytics, retailers turn this structured and unstructured data into actionable insights to understand consumer behavior and preferences, predict sales growth, and market trends. Machine learning algorithms allow users to track customer behavior across various channels to find out when and where they browse in offline or online stores, offer them personalized loyalty programs, product recommendations, etc.

Example:

Amazon is quite an obvious example of leveraging technology in retail. While users are navigating through their website, Amazon collects data, and analyzes how much time was spent on a particular page, demographic details, the items that were searched for, and so on. If residents of New York order a lot of pairs of gloves in December, Amazon will fulfill its local warehouse center in advance to cut the delivery time. The same, they stocked the warehouses with facial masks when the pandemic started.

#7 Fast Delivery

Rather than calling it one of the retail technology trends, we’ll call it retail must. Ensuring fast delivery is nowadays impossible without digital transformation. Starting with inventory management, data analytics allows retailers to find out when to pull or push stock, what needs to be removed, and what items will be in higher demand. The condition of factory equipment can also be automatically tracked to anticipate maintenance and repairs.  

In supply chains, business owners can build the fastest and safest roots based on congestion, weather, etc. to serve customers in time and cut down on fuel consumption.

Example:

Through the deep data analysis, UPS discovered that their trucks which used to turn left were more likely to get stuck in traffic jams. As a result, they consumed more fuel and more frequently failed to deliver in time. UPS decided to build routes that almost eliminated turning left. Now drivers go straight or turn right in 90% of cases which saves UPS 10 million gallons of fuel and boosts the delivery rate to 350k more packages annually, also decreasing emissions.

#8 Personalization

According to Gartner, 42% of customers in the US and EU consent that the customer experience they had with a brand is more important than the price of the purchase. What is more, Oracle’s study has shown that 90% of buyers severed their relationship with the company with service of which they weren’t satisfied. And lack of personalization played a crucial role in their decision. 

E-commerce sites can offer their users personalized recommendations based on their age, sex, weather conditions in their country, search history, and purchasing behavior.

Example:

Starbucks has been concentrating on building personal relationships with its customers for a long time. In 2011, they launched an app-based customer loyalty program that offered different types of rewards and enabled users to order and customize their drinks. In 2014, they introduced gamification to engage with users more and then personalized them. The introduction of the reward system brought Starbucks revenue to $2,56 billion grateful to the AI-based engine that generated individualized offers for their users.

#9 User Data Protection

As e-commerce stores collect, store, and use vast amounts of personal data. So, first of all, they must have website terms, conditions, and a well-written privacy policy available for users. Cybersecurity is another crucial feature that must be implemented in e-commerce sites in order to protect customers from XSS attacks, hijacking, SQL injections, card frauds, and many other threats. Proper security safeguards will help you protect your customers and business from them.

#10 Artificial Intelligence and Chatbots

Contrary to employees who stick to working shifts, chatbots are available 24/7 to answer customers’ questions at every stage of their journey. AI-powered chatbots not only answer the customers’ questions and guide them but also learn from them and build a relationship. They can also send customized promotional content on the touchpoints your customer is the most interested in and increase annual revenue by 7 to 25%.

Example:

With a chatbot named StyleBot, Nike boosted its average CTR by 12,5 times and the number of conversations with customers by 4 times during the launch of their AirMax Day shoes. The chatbot allows Nike’s customers to easily find the shoes based on their preferences and even create their own designs. Afterward, users could share it with others or even buy it.

#11 Indoor Positioning Systems (IPS)

Indoor Positioning systems became one of the technological trends in the retail industry that is currently gaining more popularity. According to MarketsandMarkets report, the global indoor location market is predicted to grow to $44 billion in 2022. While a large number of people shop online, still a considerable number of buyers opt for offline retail.

In-store navigation systems create customers a more personalized shopping experience by simplifying the process of getting to the needed store in very big shopping malls, using top-notch in-store navigation, and sending targeted ads.

Business owners, in return, get advanced visitor statistics and item location analytics needed to stimulate sales. 

Example

By analyzing customers’ location, the K-supermarket chain reminds customers about items that they might have forgotten to add to their shopping list via notifications in the mobile app. The analytics has shown that 25% of shoppers buy the product they receive a notification about.

Summary

The implementation of technology into retail is much more than a trend. Convenience, speed, and personalization it brings, totally transform the shopping experience of your customers and boost sales, conversions, and brand loyalty.

When shopping, customers are not only interested in the items you sell but the whole process you give them.