The Evolution of Retail and Customers

The Evolution of Retail and Customers

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  The Evolution ofRetail and Customers Retailing is undergoing two significant shifts. The first is technological, and the other is consumer behavior. Retailers that stay ahead of the curve at both fronts will thrive in the long-run. The Retail Evolution Retail 1.0 Physical Stores Self Service Single Channel Retail 2.0 Departmental Store Supermarket Hypermarket Retail 3.0 Technology Advancements eCommerce Boom Global Selling Retail 4.0 mCommerce and Social Media Multi-channel and Omni-channel Sensors and Beacons Retail 5.0 Reimagined Physical Stores Self-checkout System AI and Robots Generation of Customers Silent Option of Just Brick and Mortar Simply Come and Buy the Product Baby Boomers The Rise of Radio and TV Ads Started to Hold the Power Gen-X The Internet Boom Customers Became the King Millennials The Age of Omni-channel Now at the Core of Everything Current Shopping Trends E-retail Sales In 2017, e-retail sales accounted for 10.2 percent of all retail sales worldwide. This figure is expected to reach 17.5 percent in 2021. Digital Buyers In 2021, over 2.14 billion people worldwide are expected to buy goods and services online, up from 1.66 billion global digital buyers in 2016. Device Usage During the survey period, 11 percent of respondents stated that they shopped online via mobile on a weekly basis. Loyalty 75% of consumers said product information found on social channels influenced their shopping behavior and enhanced brand loyalty. Unified Experience 70% of consumers were more likely to recommend a brand if their experience with that brand was simple and there were unified communications across all channels (Schneider, 2015). What Matters Most in Retail Shopping? For Customers: • Personalized shopping experience • Hassle-free return policy • Automatically get the lowest price • Uniformity across platforms (digital and in-store) • Easy loyalty program For Retailers • Easily consolidate and manage any data • Build personalized purchase journey across all channels • Bridge the digital divide between online and physical store • Blend mobile, micro-location, voice assistants, and AI-powered technologies • Reduce time-to-market Technology Spending Rise approximately 3% over the next 3 years Omni-channel Retailers continue to build omni-channel capabilities Customer Experience Provide a modern, engaging customer experience Retailers must prioritize their omni-channel strategies to survive and thrive in today’s environment. Source: PCM Research 2016 2018* 2020*20172015 2019* 2021* 8% 10% 12% 14% 16% 18% Shareofe-retailsales 7.4% 8.6% 10.2% 11.9% 13.7% 15.5% 17.5% 2016 2018* 2020*20172014 2015 2019* 2021* 0.5 Never 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Once a year A few times a year Monthly Weekly Daily 0 1 1.5 2 2.5 3 Digitalbuyerinbillions 1.32 1.46 1.52 1.66 1.79 1.92 2.05 2.14 3% 3% 33% 16% 34% 19% 11% 21% 7% 8% 7% 38% 75% 70% of customers would PAY SLIGHTLY MORE if they got the top 3 benefits they liked from a retailer More than half of the customers say they would pay more if their top benefits were included in the customer experience. Millennials and Gen X’ers much more likely to pay a bit more for the experiences they value. Millennials 16-34 Gen x 35-49 Boomers 50-68 Silent 69+ 53% 69% $ $ $ $ 55% 37% 35% of customers would SHOP MORE OFTEN if they got the top 3 benefits they liked from a retailer The biggest impact of a great customer experience is loyalty. 77% of customers say if they received their top three benefits, they would shop at the retailer more often. Millennials are the most responsive group, with 89% saying the would be more loyal to retailers offering the benefits they want most. Millennials 16-34 Gen x 35-49 Boomers 50-68 Silent 69+ 77% 89% 82% 71% 57% Connected consumers shop omni-channel Starts in store store web web mobile mobile Ends in 74% 60% 40% 33% 26% 19% 6% 13% 25% References: https://eprints.qut.edu.au/110377/1/Retail-5.0-Check-out-the-future.pdf http://www.mytotalretail.com/article/re-imagining-retail-as-a-service-digital-economy. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-rd-thenewdigitaldivide-041814.pdf http://www.retailexasean.com/Pages/Detail/55127 https://blog.hubspot.com/sales/how-people-buy-evolution-of-consumer-purchasing-infographic https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/ https://www.statista.com/statistics/251666/number-of-digital-buyers-worldwide/ https://www.statista.com/statistics/692846/online-shopping-device-worldwide-frequency/ https://nrf.com/resources/retail-library/the-retail-customer-experience-%E2%80%94-which-elements-of-the-shopping-experience https://www.zebra.com/us/en/about-zebra/newsroom/press-releases/2018/zebra-technologies-ihl-group-study-reveals-retail-industry-sales.html https://aira.org/pdf/2016/NYPOR16/Materials/Session%205%20Industry%20in%20Focus%20Retail.pdf Desktop/Laptop Mobile Own the Digital World