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How to Unlock More Value in the Changing Retail Landscape?
08.09.2022
5 min
The major shifts in the retail landscape, payment habits, and consumer behavior that arose during the pandemic are expected to continue solidifying their presence in 2022 and onwards. For merchants, this calls for agility to stay on top of emerging trends and insightfulness to understand how to make the most out of them.
This overview will help you get a grasp of the latest retail transformation milestones. It will also suggest effective ways of seizing the opportunities that come together with these exciting changes. Make sure not to miss out on all the valuable insights!
Drastic Transformation of the Shopping Experience
During the past few years that were spent with strict social distancing measures, consumers had to adjust the way they shop to the restrictions in force. Some of these adjustments included:
- Ordering products online with home delivery or in-store pick-up
- Choosing contactless payment methods and self-service checkout
- Using QR codes instead of printed menus and price lists
These changes in consumer behavior are driven by major industry trends, such as:
- Increasing buying power of Gen Z. With people born between 1995 and 2010 now gradually joining the workforce and getting in control of their finances, merchants should take their distinctive preferences into consideration.
- Growing popularity of mobile shopping. An increasing number of consumers turn to mobile devices to browse, shop, and pay. What’s more, it is true not only for online orders but also for brick-and-mortar experiences. In 2022, 34.3% of shoppers admitted to having used smartphones to assist their in-store purchases1.
- The rising demand for omnichannel commerce. Implementing an omnichannel approach is essential for retailers who wish to attain a competitive edge, as it offers flexible, frictionless, and convenient shopping experiences that modern consumers expect.
- Task automation. Nearly 1 in 3 retailers are concerned about being able to attract and retain staff in 20222. One method of dealing with this is to decrease the amount of time the employees spend performing manual tasks by automating them, which 72% of merchants are already using or planning to implement in the near future3.
With these factors in mind, it is safe to state that the world of commerce is not going to be the same as we knew it before 2019. But how to make the most out of the rapidly changing retail environment? Read on to find out!
3 Key Areas of Focus for Modern-Day Retailers
Knowing the main trends that are affecting retail is essential to keep your retail business competitive. By analyzing these tendencies, you can build an effective long-term business strategy. Below are three critical focal points that you definitely shouldn’t miss out on in your action plan:
1. Customer Experience Personalization
It is no secret that personalization of the shopping process is a powerful tool that boosts conversions, brand loyalty, and revenues. In fact, 80% of customers are more likely to purchase from brands that offer custom experiences, and 92% of consumers claim to have been convinced to buy items that appeared in personalized shopping cart recommendations4.
Tailoring the shopping experience to match unique customer needs is conducted through the collection and analysis of consumer data. However, since Google announced the end of third-party cookie support by 2024, merchants face the need to come up with new methods of gaining insights about their clients’ history and preferences.
One way of doing this is by implementing a token management service. Such software connects payment transactions, client data, and other network tokens into a single one. The introduction of such a service enables retailers to achieve a 360-degree view of every client’s purchase behavior across sales channels and offer them personalized ads, payment options, and so on.
2. Advanced Fraud Prevention
Changes in the retail landscape inevitably go hand-in-hand with new risks, especially when it comes to payment processing. Systems with a low level of security are prone to breaches which can irreversibly undermine the reputation of a brand and cause a lot of issues for its clients.
Luckily, the right tools and data can help retailers prevent fraud effectively. For instance, Payneteasy’s payment gateway not only provides fast and smooth transaction processing but also ensures that it is conducted in the safest way possible with the help of the following features:
- 3D Secure verification
- 150+ customizable fraud filters
- State-of-the-art consumer behavior analysis
- Ethoca integration for chargeback prevention
With such software at hand, retailers can be sure that the data and funds that belong to their business and customers are secure at all times.
3. Continuous Innovation
Yet another critical point that is closely intertwined with the ones mentioned before is the need for retailers to continuously stay up-to-date. This applies to factors like:
- Industry trends
- Payment regulations
- Latest technological solutions
- Consumer demand
- Promotional methods
For example, merchants that are moving in step with the times are already actively harnessing the power of social media, working with contactless payment and delivery methods, and implementing an omnichannel approach in their business operations.
The Future of Retail Is Here - Ready to Seize the Momentum?
And there you have it - simple yet effective action points to implement in your business strategy to ensure your store is in sync with the ongoing retail landscape transformation. The tips we’ve listed are sure to help you be agile and have clear areas of focus during the time abundant with technological breakthroughs and significant global events.
1 - Cybersource - 2022 Redefining Retail Report
2, 3 - Morning Brew - What’s in store for retail: the top 8 trends in 2022
4 - StartupBonsai - 55+ Top Personalization Statistics: Facts And Trends For 2022