The changing face of consumer behavior raises a red flag for retail brands.
When I think back even just a decade ago, the demands of retail customers were not so different from the decades before. Essentially most retailers could add a functional web site and consider themselves adapted to the consumers of 2010. However in the last ten years the way we shop and consume has transformed dramatically. Most retailers – whether global chains or one-off specialty stores – are struggling to stay abreast of these changes in consumer behavior, let-alone adapting their businesses to keep-up.
PSFK’s have just released their Future Of Retail 2020 report looking at ‘retail as a personal utility’. The report provides a strategic roadmap for brands and retailers to deliver hyper-personalized service that meets the unique needs of every customer in what they call this ‘post-experiential era’. PSFK offers a business intelligence platform to help brands identify and leverage innovation opportunities by providing trends reports, immersive events, insight-rich newsletters, and research.
In research developed for this report PSFK found that:
• 78% of consumers are interested in receiving personalized recommendations or offers that are relevant to their current needs whilst they’re shopping in a store.
• 70% of consumers expect a retailer to offer them the same level of personal service whether they’re shopping in a physical store, online or on a mobile device.
• 57% of consumers are willing to share their personal information in return for customized offers, 52% would do-so for tailored product recommendations, and 53% to enable a personalized shopping journey*.
Each of these findings provides opportunities for retailers agile enough to adapt their service offering to meet the changing needs of consumers. Whilst retailers of the last generation have been able up until now to hold-on to their customers without significant innovation. The rate and degree of change we are talking here is material, to such an extent that it threatens to split the category into two: those who can adapt and stay relevant to the new generation of consumers, and those who can’t and will fade into the pages of history. As never before, the spoils of success in the decade ahead will be shared among those retail brands who can successfully evolve their marketing and branding strategies.
David is the founder of Truly Deeply, a branding agency with 25 years experience working with brands to position them for growth. His deep expertise is in the creation of high engagement brands that attract the attention of their audience and stand out from their competitors. David has extensive experience working with corporate, retail, food & beverage and entrepreneurial clients. Find out more here
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You can find the Future of Retail 2020 report here.
Photo by mentatdgt from Pexels * Source SalesForce.