Retail Shift to a new Era

Online shopping is physically transforming retail as we know it, shaking-up the foundations of everything we have always trusted. Customers are increasingly expecting more from every brand.

It takes a lot to drive millennials and generation Zs away from their screens. As globalisation has stolen individuality, the need for in-store customer experiences that make consumers feel special and unique has become a must. It is an exciting time for retail, yet even while it seems that everything we know is being tested, can we predict what shopping will look like in the future?

It has become clear that the retail market depends on data, and gaining access to that data leaves little room for intuition. Retailers such as Amazon have access to invaluable customer information, and they can use this data to build tailored offers driving conversions. But is this alone enough to sustain growth over time?
Customer experience is value 

Millennials and Generation Z customers know what they want and, most of the time, can find it regardless of the channel. They do the majority of their shopping online, but experiences are something they are willing to pay for. Sharing those experiences in social media is something they value, and they will go back to bricks-and-mortar if a store delivers something unique.

So what are these generations after? When they choose to get that “small” brand delivered to their home, they are getting rid of the intermediary and they are buying “time”; freedom to spend less time doing tasks they don’t need to do. New niche brands and many specialist retailers are “getting” it, and starting to open physical stores alongside their online offering. Most of them offer value products and/ or that opportunity to experience new radical ideas, building a bridge over the gap between physical and digital.  
Not only does this make the consumer feel special, but it also shows them that the brand truly understands their needs. A real customer-centric alternative. The customer is getting wiser and knows what is actually personal. They are looking for in-depth personalisation and that means going back to data to make that happen. Brands such as Nike are achieving this with their “Nike by Melrose” concept. 

Customer-centric success

The success of retail will always be about customer centricity, creativity and vision. Data alone and a direct reaction will not be enough. Success will be about truly reaching customers, and retailers often need to take risks to build authentic customer relationships. Innovative ideas can have a significant impact on customer adoption and loyalty. Being heard in-store, online, through every possible channel, creates a link that can lead to customer loyalty. Brands and retailers must have a creative open mind to communicate with their customers.

See our latest set of benchmarking rates, using our interactive tool featuring data from all the retail projects that we have delivered in the UK: 

Silvina Aguirre Fernandez

Associate Director Ask me a question
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