The ever-evolving mobile-centric shopping experiences and the growing need for a seamless experience across various channels have facilitated retailers to embrace digital transformation and utilize advanced technologies to leverage customer experiences, stay ahead of the curve, and drive business growth.
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AI, ML, and Generative AI
The emergence of AI algorithms
Artificial Intelligence (AI) and Machine Learning (ML) have become increasingly prevalent in the retail industry. From optimizing operations to gaining insights into customer behaviors and preferences, AI and ML empower retail organizations to make better data-driven decisions. Besides, the emergence of Generative AI has taken personalization to the next level by generating tailor-made content and product recommendations.
According to Forrester, we can expect more bespoke, enterprise-ready AI solutions that combine clients’ first-party data in 2024. From intelligent AI-based chatbots providing more informative and engaging responses, customers can now enjoy a more sophisticated and seamless engagement on their shopping journey.
Embracing personalization
According to a 2023 study of 150 retail decision-makers conducted by Coresight Research, immersive experiences would emerge as a top 3 priority investment area for retail organizations in 2024. Within immersive experiences, data/AI-enabled content allowing for personalization is considered the top investment priority.
The same report also indicated that 71% of US-based retailers have already taken advantage of data/AI-enabled content for personalization. Among these surveyed retailers, 77% said they had seen remarkable or moderate gains in online sales.
Large retailers like Walmart, Shopify, Instacart, and Snipes are already trying to adopt Generative AI in their operations to draft product descriptions. This allows customers to generate and refine shopping lists, or add products to carts by text or speech.
Augmented Reality (AR) & Virtual Reality (VR)
Augmented Reality (AR) allows brands to build smart retail experiences, changing how customers interact with brands and products. AR significantly merges the physical and virtual worlds, enabling customers to browse and explore products before buying. This technology breaks the walls between online and physical shopping, facilitating seamless and engaging experiences for customers. Meanwhile, retailers have applied Virtual Reality (VR) widely for many years to simulate customer interactions and product demonstrations.
The maturity of AR and VR technology is providing opportunities for retail companies to engage with customers by immersing them in highly engaging experiences. Although AR is currently implemented by 4% of retail and wholesale workers at least weekly, Forrester forecasts this figure can double by 2024.
Blockchain
Blockchain is the latest trend in retail, enhancing transparency and security for the whole operation.
This technology is a type of distributed ledger that allows retailers to record transactions in a verifiable and permanent way, as well as securely store and share information in a private network. Once the data has been recorded, only the members of the network can access it without granting control to any specific party.
According to “Applications of Blockchain to Improve Supply Chain Traceability” research, Blockchain will increasingly become more vital to supply chain management systems, and one of the reliable systems for tracking products. In 2024, the broader application of Blockchain will further enhance transparency and traceability of material and product flows from retailers, customers, and supply chain participants.
Intelligent Automation
Many retailers have embraced Intelligent Automation (IA) to optimize operations, further leveraging processes such as inventory management, order processing, and customer relationship management.
As a tool that provides end-to-end processes for retailers, retail businesses that focus on developing IA strategies in 2024 can reap several benefits. This includes seamless and personalized customer journeys, streamlined operations, reduced costs, etc. IA allows retailers to automatically handle and make use of complex customer data to offer recommendations tailored specifically for customers.
Significantly, IA is not about replacing employees. Rather, the advanced solution can eliminate silos in the operations and unnecessary tasks such as data entry, inventory tracking, and order processing, empowering workers to focus on more strategic projects. In 2024, those organizations that successfully invested in IA can continue to build a more efficient and empowered workforce.
Read more: As Intelligent Automation Evolves, Retailers Is Reshaping The Industry
Predictive Analytics
Predictive Analytics is another technological trend that can shape the future of retail. Taking advantage of advanced analytics and machine learning algorithms, retail businesses can analyze massive amounts of data to gain insight into business and customers, retail industry trends, and product demand.
Retailers embrace Predictive Analytics to estimate possible future outcomes. By analyzing historical sales data, item levels, or economic conditions, retailers can take action to adjust their inventory accordingly and prevent the risk of unexpected out-of-stocks.
Additionally, businesses can also make use of Predictive Analytics to determine optimal pricing strategies. By analyzing competitor pricing, market conditions, and customer behaviors, retailers can establish optimal prices that maximize revenue and profit while staying competitive.
Besides, retailers can use Predictive Analytics to detect and prevent fraudulent activities. By analyzing transaction patterns and identifying anomalies, retailers can flag any fraudulent transactions in real-time, enhancing the security of the system.
Conclusion
In 2024, technological advancement in retail will be incredibly promising. The emergence of several engaging technologies will revolutionize the way consumers shop and interact with brands. As almost 75% of organizations are adopting automation and advanced technologies, retailers are transforming and optimizing operations to stay ahead of the competition and drive business growth.
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References
5 Trends That Will Shape the Retail Industry in 2024
2024 Retail Predictions: 5 Trends to Watch
Technology at the heart of retail: trends shaping the industry in 2024
2024 Retail Predictions: 5 Trends to Watch
The Retail Technology Trends Predicted To Dominate 2024
akaBot (FPT) is the operation optimization solution for enterprises based on RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 20+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, and Logistics…, akaBot is featured by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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