[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.19.4″ background_image=”https:\/\/moodmedia.com\/wp-content\/uploads\/2024\/01\/2024-predictions-hero4.webp” background_position=”top_center” background_color_tablet=”#cccccc” background_last_edited=”on|desktop” background_enable_color_tablet=”on” background_blend_tablet=”screen” collapsed=”off” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
[\/et_pb_text][et_pb_button button_url=”#contact” button_text=”Contact Us” module_class=”mbutton” _builder_version=”4.19.4″ _module_preset=”default” background_layout=”dark” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.4″ _module_preset=”default” background_color=”#eeeeee” collapsed=”off” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n
Two out of three shoppers walk into a store open to discoveries and hoping for inspiration. Customers look for social experiences where they can discover new products, feel them, imagine them in their homes \u2014 and purchase and take them home immediately. After all, seeing is believing \u2014 and 52% of customers appreciate<\/a> connecting tangibly with products they plan to buy.<\/p>\n Retailers, meanwhile, are seeking innovative ways to create the right atmosphere that puts customers at ease, encourages exploration and delivers an exceptional experience. What\u2019s driving the retail industry\u2019s rapid evolution? Technological advancements and evolving consumer expectations. Together, these two ingredients enable stores to present their inventory in ways that appeal to all the senses.<\/p>\n This white paper explores key predictions for 2024, specifically focusing on trends including next-level on-premise personalisation, the symbiotic relationship between humans and artificial intelligence (AI), and the need for harmony among all systems.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” background_color=”#c9c9c9″ custom_padding=”30px|30px|30px|30px|false|false” border_radii=”on|10px|10px|10px|10px” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Personalisation” module_id=”personalisation” _builder_version=”4.23.1″ _module_preset=”default” collapsed=”off” global_colors_info=”{}”][et_pb_row column_structure=”2_5,3_5″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”2_5″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n AI-driven technologies are already expanding the boundaries of immersive and interactive shopping experiences. Customers appreciate the effort, with 52% agreeing that their satisfaction increases as digital experiences with brands grow more personalised.<\/a> Over three-quarters (77%) of consumers prefer brands offering personalised data-based experiences,<\/a> and 75% prefer it when retailers use personal data to enhance their shopping experiences.<\/a><\/p>\n Retailers are strategising ways to elevate and personalise the shopping experience and journey with the following technology.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.19.4″ _module_preset=”default” custom_margin=”0px||0px||false|false” custom_padding=”0px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_divider color=”#eeeeee” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n Recommendation engines use behaviour and product information to offer personalised recommendations, helping connect shoppers to products and services they\u2019ll likely enjoy. Virtual try-ons with computer vision algorithms power virtual fitting rooms and make-up try-on tools, enabling customers to experiment with items before purchasing.<\/p>\n Computer vision uses gesture controls to power interactive displays, mirrors and screens, offering virtual product visualisations to create an immersive, in-store experience. This technology is very popular with shoppers, with 75% saying they would use interactive screens to discover a retailer\u2019s online product portfolio and 69% saying they love the \u201cwow\u201d factor they get from seeing a large video wall in-store.<\/p>\n Natural language processing (NLP) helps chatbots engage in conversational commerce, answering product questions, suggesting purchases and mimicking human sales assistants. ML algorithms deliver personalisation by analysing shopper data and behaviour to create a tailored shopping experience with customised navigation, product suggestions, promotions and search results.<\/p>\n Predictive analytics leverages algorithms to study sales data and external factors to forecast demand, helping stores optimise inventory and provide targeted promotions. Dynamic pricing also uses algorithms to adjust prices based on competing options, inventory and consumer demand; retailers use flexible pricing to strike the perfect balance.<\/p>\n [\/et_pb_text][et_pb_divider color=”#eeeeee” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n Perhaps a better question about IoT sensors is not where you can find them but where they aren\u2019t used. This technology has found a home in many aspects of retail.<\/p>\n Interactive windows and displays create an immersive external experience to pique customers\u2019 curiosity and draw them into the store. Once inside, more technology helps retailers record shopper behaviour. Pressure-sensitive floors can track in-store paths to analyse traffic patterns and engagement. Motion sensors on store shelves track customer behaviour like products touched or time spent looking at a particular area. Digital signage equipped with proximity sensors can detect approaching customers and change the current content or offers on display.<\/p>\n Bluetooth beacons placed throughout stores connect with smartphones to offer location-based promotions. RFID tags on items enable sensor-driven interactivity and provide data on purchasing behaviour. Interactive displays and shelves detect weight changes when an item is picked up or moved, triggering related visuals, product information or recommendations. This technology is popular among 75% of shoppers, with interactive kiosks in grocery stores encouraging nearly a quarter of shoppers to consider purchasing.<\/p>\n Smart mirrors with built-in sensors allow patrons to try on outfits virtually and get feedback on different styles and custom recommendations. Smart fitting rooms equipped with sensors also provide feedback on fit or style and allow shoppers to request different styles. Our study found that interactive changing rooms encourage 43% of shoppers to revisit a fashion store and prompt 30% of department store customers to consider buying.<\/p>\n [\/et_pb_text][et_pb_divider color=”#eeeeee” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n Think of beacons as lighthouses that continually transmit signals for other devices to pick up and see. But rather than a light beam, beacons broadcast radio signals (comprised of numbers and letters) at consistent, short intervals.<\/p>\n Retailers can place beacons around the store to detect when customers approach certain products and departments and send relevant offers and information to their smartphones to drive targeted engagement. Over 70% of customers want real-time recommendations as they browse the store.<\/p>\n Retail apps using beacon technology can provide on-premise navigation, pointing shoppers toward items they want \u2014 and other popular products \u2014 to make in-store shopping more immersive. Almost 75% of shoppers want to use (or already rely on) their mobile devices to help navigate stores.<\/p>\n Retailers can even put beacons on apparel, enabling consumers to build a virtual fitting room on their smartphone to try on items digitally. For streamlined, frictionless transactions, beacons enable secure mobile payments from smartphones without a customer needing to use the checkout line.<\/p>\n Some retailers gamify the shopping experience by allowing customers to \u2018check in\u2019 to departments via beacons to earn points or collect rewards, incentivising engagement. Beacons can also trigger nearby digital displays or mirrors to show product information and recommendations when someone picks up an item from a shelf. Finally, beacons collect interactions and location data, providing retailers with valuable insights into customer behaviour and enabling teams to offer more customised experiences.<\/p>\n These technologies enable marketing teams to tailor product recommendations, curate and deliver tailor-made shopping experiences, and obtain real-time information and insights to make adjustments that enhance customer satisfaction and maintain brand loyalty. The data backs up evolving customer expectations:<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_4,1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_circle_counter number=”60″ bar_bg_color=”#5bc4ba” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_circle_counter][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” text_orientation=”center” global_colors_info=”{}”]<\/p>\n 60% of customers say personalisation influences shopping decisions (Mood<\/a>).<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_circle_counter number=”71″ bar_bg_color=”#5bc4ba” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_circle_counter][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” text_orientation=”center” global_colors_info=”{}”]<\/p>\n 71% of customers want businesses to provide personalised experiences; 76% grow frustrated when the delivery falls short of expectations (McKinsey<\/a>).<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_circle_counter number=”86″ bar_bg_color=”#5bc4ba” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_circle_counter][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” text_orientation=”center” global_colors_info=”{}”]<\/p>\n 86% of customers indicate personalisation influences purchasing decisions (Infosys<\/a>).<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_circle_counter number=”56″ bar_bg_color=”#5bc4ba” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_circle_counter][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” text_orientation=”center” global_colors_info=”{}”]<\/p>\n 56% of online shoppers gravitate toward companies offering personalised recommendations (Invesp<\/a>).<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.19.4″ _module_preset=”default” custom_margin=”0px||0px||false|false” custom_padding=”0px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\n Retailers can increase revenue by over 25%<\/a> when they offer individualised product recommendations. According to research from Barilliance, product recommendations account for as much as 31% of e-commerce revenue.<\/a> Shoppers engaging with recommended products generate 70% higher conversion rates<\/a> than those who don\u2019t.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”AI” module_id=”ai” _builder_version=”4.19.4″ _module_preset=”default” background_color=”#000000″ collapsed=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/moodmedia.com\/wp-content\/uploads\/2024\/01\/2024-predictions-ai.webp” title_text=”2024-predictions-ai” force_fullwidth=”on” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” background_layout=”dark” global_colors_info=”{}”]<\/p>\n Over three-quarters (77%) of customers prefer to speak and interact with human representatives<\/a> versus AI-powered chatbots when shopping online. But customers also prefer a mix of self-service and assisted shopping choices,<\/a> with 28% of consumers more likely to patronise non-grocer merchants offering self-checkout. Another 20% expressed an interest in completely self-service stores.<\/p>\n So, while AI is increasingly critical in advancing personalisation, the human touch remains essential. Humans can perceive subtle emotional cues and respond with compassion, empathy and situational understanding AI cannot replicate. Human touch builds connections. A warm human touch conveys brand values more effectively because customers are drawn to connect with the people behind the brands \u2014 not the tech itself.<\/p>\n Customers also need to trust the recommendations and personalisation retailers share. A friendly human touch showing genuine care cultivates trust more than an algorithm. Humans also think creatively outside the box in ways that often defy pure data-based logic, allowing for innovation and the ability to surprise and delight shoppers with personalized recommendations they might not expect.<\/p>\n Retailers must seamlessly blend tech and human expertise to create responsive, personal experiences, which can sometimes pose a challenge. But here are some suggestions:<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_4,1_4″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Use AI to analyze data and identify customer preferences, trends and intent. Let human experts curate final recommendations informed by the AI insights.[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Employ virtual shopping assistants powered by conversational AI to engage customers. Have human agents seamlessly take over for complex or sensitive customer issues.[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”1||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Set up omnichannel concierge services staffed by experts who can access customer data and journey history to provide personalized advice and recommendations.[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Enable store associates with mobile tech to look up loyalty program data, order history and product recommendations for customers in-store. [\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_4,1_4″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”w||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Implement AI-powered chatbots for swift customer service at scale. Empower human agents to step in for dissatisfied chatbot users and rescue the experience.[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”||fa||900″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Offer customers smart mirrors with tailored outfit suggestion capabilities, but have fashion specialists on hand to provide an expert human perspective.[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.19.4″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]Apply machine learning to monitor inventory and product demand. Allow buyers to make the final call on purchases and allocation based on their category expertise.[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb use_icon=”on” font_icon=”||divi||400″ icon_color=”#5bc4ba” image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” _builder_version=”4.23.1″ _module_preset=”default” body_text_color=”#FFFFFF” body_font_size=”16px” global_colors_info=”{}”]<\/p>\n Send AI-optimised promotions and offers through marketing automation. Design campaigns based on human insights into customer motivations.<\/p>\n [\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Systems” module_id=”systems” _builder_version=”4.19.4″ _module_preset=”default” collapsed=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}”]<\/p>\nIN THIS ARTICLE<\/b><\/h3>\n
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Next-level, on-premise personalisation<\/b><\/h2>\n
Machine Learning (ML) algorithms<\/h3>\n
IoT sensors<\/h3>\n
Beacon technology<\/h3>\n
AI needs human involvement to succeed<\/h3>\n
Creating harmony among systems<\/h3>\n