If you’re wondering what will shape the retail industry in the next few years, you should keep reading. In this article, we’ll cover Hyper-personalisation, supply chain delays, and Alternative business models. These trends will have a direct impact on the business model of traditional brick-and-mortar stores. In addition to these issues, we’ll explore how to adapt to these changes. After all, what will make a successful store?
Alternative business models
With today’s rapidly changing retail landscape, more than ever, retailers are faced with the need to expand beyond pure play merchandising. By building alternative revenue streams, retailers can increase customer loyalty and generate synergistic value for their core business. To realize this potential, retailers must challenge long-held strategic assumptions and identify the resources necessary to realize their potential. The following is an overview of three key alternative revenue models:
First, let’s define what each of these different types of business models looks like. For example, a store can be a standalone entity, a franchise, or a corporate retail chain. An independent retailer is a one-store operation that typically features the proprietor and their family. Some of these businesses are even passed down from generation to generation. However, a new retailer must be willing to sacrifice some control over the business model to achieve the goals and objectives of its partners.
Hyper-personalisation
There are countless ways to improve the customer experience and the process of hyper-personalisation is just one of them. One of the most common and effective methods is to create an email campaign that is specific to a particular customer. A simple example would be directing a male customer to a men’s footwear page and a female customer to a women’s footwear page. For online stores, a company can tailor search results based on weather.
To fully take advantage of hyper-personalisation, businesses should gather as much data as possible on their customers. For example, website analytics can reveal the age, gender and keywords of a visitor. The same system could also suggest matching ties and shirts for a female customer. By acquiring accurate information on a customer, retailers can build a hyper-personalised experience for them. If the customer is not satisfied with the results of a particular campaign, they can modify the approach to improve their sales and customer service.
Hyper-localisation
In the past few years, retailers have seen an explosion in the number of shoppers who use “near me” and “nearest” searches. Although it may seem like the backlash against big box retailers, hyper-localisation is actually a sophisticated marketing strategy. As Google reports, searches for “near me,” “nearby” and “closest” have more than doubled in the last year. Hyper-localisation can increase your bottom line by reducing returns and maintaining greater control of your supply chain.
Ultimately, hyper-localisation requires a lot of planning and a firm’s ability to adapt to changing consumer needs. Retailers should focus on developing a plan that integrates new technology with existing systems. This technology allows retailers to automate processes, such as floor plan optimization. It also enables front-end staff to engage shoppers on the sales floor. If your company is considering implementing hyper-localisation, it’s important to follow best practices.
Supply-chain delays
Supply-chain delays in retail are one of the biggest concerns for retailers today. Companies have experienced longer turnaround times for products in the past than in the last few years, and many are reversing that trend. Companies are now placing orders several months ahead of normal, allowing for ample time for the products to reach consumers in the U.S. The early bird gets the worm approach is a recent trend that reverses years of shrinking turnaround times aimed at becoming more responsive to consumer trends and reducing excess inventory.
As a result of the recent global outbreak of Covid-19, supply chains worldwide have been experiencing major disruptions, limiting ecommerce and forcing consumers to make purchases online. This has slowed down online purchases, and economists assumed that consumers would exhaust demand for products online before the global outbreak would hit. However, the Covid-19 outbreak has caused supply-chain delays and has made consumers more conscious of global shortages.
Customer expectations
Customer expectations are important in the retail industry. It’s not just that people have expectations about the quality of your products; they also form a sense of professionalism and brand. Therefore, it is essential for sales professionals to be aware of how to meet these expectations. This article discusses the different types of customer expectations, the factors that influence their level of satisfaction and some guidelines for achieving higher customer expectations. Read on to learn how to meet your customers’ expectations and become more successful in the retail industry.
One of the most common customer expectations is personalization. Many innovations have made personalization easy, such as tags that automatically insert the name of the recipient into an email. Personalized experiences can include product recommendations based on past purchases, and data can be used to create ultra-custom experiences for customers. Customers also expect free shipping when purchasing online. If they can get their items to their destination without paying extra money, that’s even better. Luckily, this is easier than ever.
