Business gets personal
We, as a society, now do more with our phones than ever before.
Case in point: You’re at a friend’s outdoor party and take a liking to his barbecue. Without much thought, it’s likely that you’ll grab your smartphone and search the name and model to learn more about the grill. You might even access a mobile-enabled website to purchase your new barbecue before your steak is done.
The truths about the future of retail are:
Personalization enabled by technology is accelerating.
The connected consumer is the default.
Security and privacy concerns will continue to be factors as digitization continues.
Near-instant gratification and frictionless commerce are changing expectations.
Brick-and-mortar is not dead.
Given the reality of an ever-increasing adoption of mobile, i.e. the Internet of Things (IoT), here are the retail industry trends that Epicor sees for 2016:
Trend 1: Apps will give way to personal micro-sites
There are only so many apps that consumers actually use. After the novelty of a new app wears off, users tend to go directly to search engines and retail outlet websites. Once there, consumers enjoy the convenience of logging in to their own accounts to view balances, transaction histories, order statuses and receipts. If they can quickly and easily set up “frequently bought” items or wish lists, or otherwise make new purchases using their personalized micro-site, they will be more likely to return. In 2016, expect retailers to step up their game in personalized multichannel digital experiences.
Trend 2: Connected customers and the rise of the empowered employee
Because consumers have access to so much information online, they expect retail employees to have access to at least the same level of detail. In 2016, retailers will need to mobilize the sales floor to empower associates with information that meets customer expectations for knowledgeable service.
Trend 3: Security and privacy will remain top of mind
In 2015, Europay, MasterCard and Visa (EMV) and its adoption were top-of-mind with the banking industry’s security-related regulations taking effect.
However, though EMV is being adopted, the industry and its customers cannot fully relax about identity security.
EMV stops at the card reader, so real data security will still be an issue in 2016, and the question will be how to protect the entire transaction process, specifically, protecting our data in the cloud. At the same time, there’s no doubt that collecting metadata about customer-buying habits, including searches and purchasing history, is vital for marketing, inventory management and other operations. In 2016, we will see continued expansion of the use of metadata in predictive analytics, but more needs to be done to ensure that the technology in place balances privacy needs against the benefits of using big data in the cloud.
Trend 4: Customers beginning to expect contactless and frictionless payments
As technology moves toward increased contactless and frictionless payment capabilities, we will see a growing expectation for more of it. This expectation will continue to grow as retail adoption of secure contactless payment options improves the customer experience, as well as overall in-store experiences when lines go faster as people speed through the checkout process.
Trend 5: Brick-and-mortar is still in play
Flying in the face of previous predictions that traditional brick-and-mortar stores would go the way of the dinosaur, we’re seeing many online-only businesses (such as Amazon) open up brick-and-mortar locations. In 2016, consumers will still shop locations to see, touch and investigate items they need to buy, but also will expect a complementary digital experience, and retailers will need to be able to deliver seamless omnichannel capabilities.
Doug Smith is the director of Product Management & Marketing for the Epicor Eagle retail business management system, in use today by thousands of hardware and home center retail stores. For more information, visit epicor.com/ products/eagle-software.aspx or call 1-888-463-4700.