As the year comes to an end, retailers all around the world prepare for new and upcoming technologies. The technological developments will help in generating strategies to tackle current and upcoming challenges in the market. As customers gain more knowledge of the product and market conditions, they give rise to new trends and demands. Therefore, businesses worldwide rely on technologies to successfully fulfill these demands to grow and develop continually.
According to research, Personalization is the most preferred market trend and will continue to remain so in the future. Over 55 percent of the shoppers consider personalized products and services as the principal reason for shopping from a company. As a result, customers may pay 20 percent extra to receive a premium personalized experience. According to research, personalization is crucial to firms as it improves customer engagement, retention and promotes brand loyalty. Customers prefer companies who recommend products based on their previous purchases and other customers with similar demographic traits as them.
Brand Loyalty & CRM
In a highly competitive market, it is crucial for firms to maintain a long-term relationship with their customers. Therefore, firms must introduce excellent customer relationship management strategies. For instance, loyalty programs, text messages, emails, chatbot’s and messaging apps will assist in building a community through constant communication. According to research, companies utilizing digital strategies improve customer retention rates by at least 30 percent. By 2025, customer relationship management is predicted to surpass $80 billion in revenues.
Increased reliance on mobile phones for shopping and entertainment has urged retailers to introduce mobile-friendly website layouts and apps. Mobile phones are crucial to online retailers as they redirect 70 percent of E-Commerce traffic. A popular technology-based trend in E-Commerce is digital wallets, which will be worth $14 trillion by 2022. Social commerce is another market trend which will improve E-Commerce traffic by 18 percent as it continuously gains popularity.
Artificial Intelligence and data will play a vital role in the development of optimal E-Commerce strategies. Similarly, it helps retailers gain information on customer preferences and assists them in predicting future trends and demands. Artificial Intelligence helps in managing inventory levels and preventing human errors regarding the collection and storage of customer data. Also, companies using these technologies are predicted to witness an increase in revenue by over 30 percent. The Artificial Intelligence market is set to be worth around $9 trillion by the year 2025.
Other advancements like Augmented and Virtual Reality will play an essential role in improving customer service, satisfaction and retention rates. Advancements in technology will enable in reducing returns by 30 percent, thus saving companies worldwide over $17 billion in expenses.
Another E-Commerce trend that is gaining popularity in the past few years is the Voice and Image searches. Consumers can now find products online, take screenshots and use them to purchase products or similar features. According to market research, voice and image search will constitute up to 50 percent of the searches by 2020.
Despite various challenges in E-Commerce, it is crucial for firms to keep track of new and upcoming technologies and trends to gain maximum growth and attain a strong competitive positioning in the market.
Written By: Rajiv Prasad