Once again we are looking at our friends at PSFK to find out the latest in retail trends. PSFK Labs identifies the key trends driving forward the Future of Retail 2016
“Not a lot has happened in retail, but the consumer has changed,” Keith Mercier, Worldwide Retail Leader at IBM Watson said during his presentation at the Future of Retail 2016 NYC launch.
The sentiment can be felt by retailers across industries: consumers today are more connected and more demanding of a brand’s narrative than ever before. As services, automated or otherwise, continue to improve upon the shopper experience, our expectations are rising alongside.
The Future of Retail 2016 report from PSFK Labs outlines the 10 Pillars delivering the New Shopper Experience. Download the full report available today.
To reach the future-forward consumer, encourage loyalty, build a community and empower advocates to spread the word, it’s necessary to leverage these findings to design for the next age of retail.
1. Create Confidence
Brands must provide shoppers with the tools and advice to help them discover new products and choose the option best suited to their lifestyles and needs. From Samsung’s cellphone test-driving to Lululemon’s tapping into basic sensations, building shopper confidence means unabashed access to what you’re selling.
2. Eliminate Obstacles
A first-time shopper won’t follow a brand far down the purchase path rabbit hole. One-in-three smartphone users have purchased from a company other than the one they intended because that opportunity was in the right place at the right time. In this section, we explore how major retailers like Neiman Marcus, Macy’s and Starbucks create seamless transactions.
3. Democratize Access
In years past, a stylist or personal assistant was reserved for an elite class, but today the option of a hand-selected wardrobe or floral delivery is an algorithm away. The best brands connect customers to one-on-one recommendations or put enthusiasts on the front rows of exclusive events using virtual reality. It’s equal-opportunity luxury.
4. Recognize & Personalize
Like walking into a coffee shop where baristas already know your order, welcoming back loyal customers—or predicting and personalizing the experiences of first-timers—makes any consumer feel unique and appreciated. Put systems in place for remembering and acting on consumers purchase history and preference, and tailor those experiences over time.
5. Promote Transparency
Customers are increasingly concerned with how their dollars are put to good use, and how their purchases make them feel at the end of the production chain. With 81% of millennials looking for brands that tell the full story of their products, transparency in intent and execution makes a product stand out. American Eagle’s refusal to retouch models, Walgreens’ rewards for healthy behaviors, and more are forging social good examples for others to follow.
6. Perfect Partnerships
Two is better than one…if you do it right. Combining forces with like-minded companies, such as Uber and Shopify’s same-day delivery service or AllRecipes and Instacart’s effortless grocery shopping, can turn two strong brands into a powerful purchasing force. Marry into your fellow brand’s loyal base, and start building a bigger family.
7. Optimize Ownership
Just as transparency and confidence-building encourage clientele to come back, customers crave responsive support networks for what they’re invested in. Smartphones and an always-connected lifestyle make support like Fountain’s AI experts or Everlane’s weather-based style guides possible.
8. Cultivate Community
Customers don’t just want to connect with a brand, they want to opt into a community. Create opportunities for consumers and fans to come together around the halo of a brand in ways a single product can’t reach.
9. Encourage Advocacy
The power of a personal recommendation is a brand’s biggest influence. Turn customers into brand advocates, with rewards and incentives for doing so. Seventy-nine percent of consumers spread the word about a positive experience already; major brands have reimagined how to push the word-of-mouth phenomenon even farther.
10. Deliver Delight
That combination of the perfect and unexpected can reenergize existing relationships. Going beyond an exchange of cash for goods and providing perks can build on the broader brand promise. Efforts like Nike’s “secret gym” and Kenneth Cole’s open-anytime offer tie a specialness to your products that they’ll want to share.