NRF 2024 is the retail industry’s biggest show and an event that should be on every retail leader’s calendar. However, if you were unable to attend NRF 2024, you can still access the most valuable insights from this year’s conference.
MJV Innovation, a leading global customer experience, design thinking and data analytics consulting firm, sponsored the NRF for the second year in a row. More importantly, the team has created a detailed report summarizing the insights gleaned from the world’s largest retail conference. Here are some excerpts from the NRF 2024: Retail’s Big Show report.
Customer loyalty is more important than ever
We all understand the value of customer loyalty, which is why retailers are constantly looking to increase customer retention and reduce churn. Several speakers at NRF 2024 presented interesting data on customer loyalty, revenue impact, and the value of providing secondary services such as POS finance.
For example, if a customer returns an item to a store, they are 70% more likely to get the full refund, which can be up to 20% more expensive than the original purchase price. Another hot topic at NRF 2024 was the use of loyalty programs and cashback to increase conversions. For example, Amazon offered his 5% cash back card with no annual fee, but it was only available to Amazon Prime subscribers.
Looking for more ways to strengthen loyalty? Then be sure to download the full report.
phygital is the new standard
Phygital is the integration of physical and digital sales channels. Rather than treating these media as separate elements, a phygital strategy sees them for what they are: cohesive components of the customer’s journey. The trick is to provide a diverse physical experience that seamlessly blends digital and physical components.
Consumers are highly opinionated about what kind of digital interactivity they want while shopping in-store, so they can’t just focus on one or two physical products. For example, 15% of shoppers prefer to use a brand’s mobile app even when in-store, 12% prefer scan-and-go devices to avoid checkout lines, and 16% of consumers prefer self-service. We believe kiosks are your favorite checkout method.
Therefore, multiple digital channels need to be integrated into the physical shopping experience. Start with a great mobile app that offers product scanning and search functionality. Take it from there and explore other ways to immerse in-store shoppers in the shopping experience.
Omni challenges due to omnichannelization
Most retailers are becoming multichannel, meaning they operate on both digital and physical fronts. However, only 11% have a sophisticated omnichannel strategy in place. What’s the difference? Multichannel simply means giving consumers multiple ways to interact with your brand.
Omnichannel brings together multiple channels into a unified experience. Omnichannel increases the fluidity of the customer journey and reduces friction points, thereby increasing conversion rates and sales volume.
To make your sales strategy omnichannel, you need to update outdated experiences. For example, your point of sale may need to be modernized to provide the speed and convenience of service that customers enjoy while shopping online. Omnichannel means merging digital and physical experiences.
Personalization is becoming mainstream
You might be thinking, “Haven’t retailers been investing in personalization for years?” The answer is yes. But personalization in retail is about to take its next big leap, thanks in large part to the rise of artificial intelligence. AI and machine learning technologies are making hyper-personalization a reality.
Hyper-personalization involves personalizing nearly every aspect of a customer’s interaction with a brand, from the emails they receive to the content they target online. However, personalization involves more than just AI and ML technologies. You also need the right data. “When you combine data and AI, magic happens,” said Rob Garf, VP and General, Retail Salesforce.
Taking personalization capabilities to the next level can be a game-changer for your business. According to data shared during NRF 2024, 80% of consumers are more likely to purchase when brands invest in personalization.
AI: Retailers’ newest superpower
Artificial intelligence and its trend to revolutionize retail are making everyone clamor to adopt this emerging technology. But several NRF speakers warned retailers about the dangers of jumping headlong into AI without a consistent strategy.
Jill Klein, Head of Emerging Technologies and IoT at CDW, said: “Everyone is jumping into the artificial intelligence pool. Some people swim and some people drown. So everyone should take swimming lessons.” Her statement speaks to the fickle nature of AI. Masu.
Artificial intelligence is not inherently smart. Instead, its effectiveness depends entirely on the quality of the data it feeds. The concept of “garbage in, garbage out” applies. If you plan to or should invest in AI, it’s important to do your due diligence and ensure your data is of appropriate quality.
Understand these trends
As you can see, retailers are being pulled in different directions. The question is: what improvements should we pursue first?
It’s best to focus on what brings the most value to your organization and build on that momentum. Turn small wins into big wins and use these insights to propel his business forward in 2024.
