Forecasting the Future of Retail Spaces in a Digital World

Some people shopped online for the first time during the pandemic and quickly realized how convenient having items delivered could be. Those with busy schedules may have little time to visit a brick-and-mortar store and prefer the convenience of online shopping. Keeping a physical retail space thriving in a new digital world presents several challenges.

Fortunately, emerging technologies provide multiple ways for brands to evolve. Here are some elements for retailers to consider as they move into the future.

1. Get Personal

Today’s consumers feel like another number in a massive crowd of people. Finding ways to deliver a personalized experience is complex online, but retailers have an advantage over digital stores because they meet with customers face-to-face. They can use the opportunity to create a custom experience the person can’t get online.

For example, stores should train sales staff to greet shoppers and learn their needs. Armed with this knowledge, the employee can guide the customer to the products that solve their pain points.

2. Use Augmented Reality (AR)

The mobile AR market is worth $2.4 billion and is estimated to grow to $9 billion by 2027. Brands such as IKEA and Zennia have used AR online for years to show users what an item looks like in use. Physical stores can also use the popularity of the technology to engage store shoppers.

For example, one might add a digital display that interacts with the app or a phone so the user can see what arrived recently in the store. They can pull up a photo they took of their living room and see how a table looks next to their couch. Stores would do well to tap into AR to attract younger audiences to their stores.

3. Immerse Them in the Moment

Immersive displays are another way retailers can draw consumers into their stores and engage them in the shopping experience. H&M set up a holographic display in Brooklyn. As the user interacts with the hologram, they see clothing they might want to wear.

Fashion retailers also use smart mirrors to help people try on different styles and add them to a shopping cart without the aggravation of physically seeking out and trying on clothing. However, around 75% of commercial properties are undervalued in the insurance industry. Companies must ensure they have adequate insurance if planning to have customers do anything physical.

4. Embrace the Omnichannel Experience

Consumers today may start shopping online and then visit their local store to pick up items, make a purchase or get personalized help. Using new technology to integrate their experience makes everything seamless and increases conversions.

Companies should imagine their typical customer starting their journey online, searching for a solution to a problem. If it has the answer for a pain point, the user might go to the physical store for help. They may call, use a chatbot or interact on social media before entering the store.

Finding ways to track these interactions makes each one more intuitive and personalized. Businesses should tap into the power of customer relationship management software so visitors can register and save their details for future reference.

5. Create an App

An app bridges the gap between digital and physical shopping. Enterprises can use it to push out notices about special offers, use geolocation tracking to alert customers when they pass the store or send a special offer if they step inside the doors right now. Ideally, an app will serve multiple purposes and provide digital and physical retail shopping experiences tailored to each individual.

6. Use Artificial Intelligence (AI)

Tap into the power of AI to grow your buyer base and better understand current clients. Around 56% of organizations use AI for customer service needs. A computer can sift through all the data collected on shoppers and develop patterns and ideas for new products to order or marketing efforts that are most effective.

Brands can also use AI chatbots as a digital customer service option. With multichannel consistency, they can offer a powerful user experience that makes a brand stand out in its industry.

Preparing for a Digital Future

Companies such as Amazon and Walmart set the tone for retail shopping in the future. They offer digital solutions and brick-and-mortar stores where you can pick up mailed items or return and exchange items. Small businesses with a retail space should find ways to reach their target audience online and integrate processes between the digital and physical worlds. Doing so allows them to pivot as new technologies emerge.

Devin Partida writes about investor technologies, big data and apps. She is also the Editor-in-Chief of ReHack.com.