The future of Retail tech | Bunch Consulting
What is the current state of retail tech? What are the predictions for the upcoming years? Have a look at our article, it’s all there!
This digest covers the following topics: 2023 trends in retail tech, the technologies helping the merge of the digital and in-store experiences, our retail tech case, and many more. Enjoy the read, and if you have any questions, let us know in the comments or get in touch via [email protected].
Customer experience in retail tech
Retailers are heading towards digital transformation to meet the expectations of their customers. It’s not only about opening an e-commerce platform but providing a seamless, omnichannel experience that merges the digital and in-store experience. What are the secret ingredients of customer experience in retail tech? Find out below.
AR/VR experience
One example of an in-store VR experience is Decathlon. You can use VR stations to experience their product in a natural environment – like walking inside the tent you’d like to purchase. To name the three giants that provide at-home AR/VR experiences – Lego, Adidas, and IKEA. Lego allows you to play with virtual legos in the real world, thanks to its app. Adidas enables people to try on their shoes “virtually”, whereas IKEA gives its customers the possibility to experience their products at home, all thanks to AR.
AI applications
Chatbots are nowadays a standard on websites or in apps. Their role is not only to provide high-level experience 24/7 but to provide personalized service and engage consumers. The global chatbot market is estimated to reach $1.23 billion by 2025. Cashier-less stores – according to McKinsey data, automated checkout can help companies save between $150 billion and $380 billion a year in 2025.
IoT
According to McKinsey, the influence of IoT in retail environments will range from $410 billion to $1.2 trillion per year by 2025. An example of applying IoT is using RFID tags to automatically track what items were taken off the shelf. Smart mirrors, using RFID tags aim to revolutionize the clothing industry, providing personalized suggestions and quick access to request new size or color.
The top 5 retail tech trends in 2023
Which path to choose when developing retail tech? How to satisfy and impress your most demanding clients? Let’s dive into the forecasted trends for 2023 and find out!
Omni-channel shopping
Providing an integrated online and in-store experience is essential to keep your customers happy. People are doing research online and want to purchase goods in-store and vice-versa. 80% of customers who return a product in a physical store, spend the refund in the same place, as per IMD research. Omni-channel satisfies the needs of your current clients but also increases the retention ratio.
Self-service checkout
The self-service checkout market is expected to grow at 13% CAGR between 2022 and 2023. What drives the demand? According to Grand View Research, the following reasons contribute to it:
In-store appointment booking
Booking appointments through a website or app provides customers with white-glove client treatment and the feeling that they’re taken care of. Any systems or apps allowing it will definitely grow in demand in the upcoming year.
24/7 customer service and chatbots to help
What is a consumer likely to do if there’s no one to help him at a certain time? Go somewhere else or visit another website that offers support 24/7. With the rising costs of employment, many companies decide to implement chatbots to have customer service available 24/7.
Safety?
It’s not surprising that customers are getting more and more concerned about the safety of their data and payments. Retail was the most targeted industry when it comes to cyberattacks, starting in 2020, as per the Trustwave Global Security Report. What does it mean for business? Implementing fraud prevention tools, using reputable payment providers, and following data privacy and security best practices.
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Retail-focused computer vision surge
The longer the checkout line is, the more impatient the customer gets. The clients are losing their patience, looking for items that are out-of-stock and retailers are fed up with supply chain disruptions and staffing shortages. It sounds like a game scenario where you’re in charge of managing it… What comes to the rescue in real life? Retail-focused computer vision surge.
The computer vision market
Experts estimate that the computer vision market will grow worldwide to $41 billion by 2030.
McKinsey analysts see investing in retail technology as the logical “next step for the industry”. That is where AI and computer vision come in, powering cashier-less checkout and inventory management. Identifying items and ringing them up, allowing the customer to grab items off the shelf and leave without standing in line is possible thanks to specialized cameras and sensors.
Retail tech functionalities
Another use of retail tech is keeping track of a customer’s shopping tab as they go. It offers the possibility of recalculating the total if they put an item back and paying by skipping the lines. Some solutions allow tracking item stock and customer body language in order to alert store employees if there’s a suspicion an item was hidden in a jacket or bag. What’s important, it’s possible without gathering any biometric or facial recognition data.?
Our retail tech SaaS
The possibilities for developing retail tech solutions are endless. We’d like to inspire you and share one of our successful SaaS projects from the retail tech industry. Today is the day!
What did our Bunch do?
We developed a SaaS system that analyzes the quality of product descriptions all over the eCommerce platforms where the product is listed. We used the following technologies: React, Redux, Node.js, TypeScript, FireStore, and Python.?
What does the SaaS do?
The system recognizes and reports if a picture, title, and description of a product are not matching. The SaaS helps to verify the content you’ve syndicated is consistent with the content that’s being displayed. It allows users to configure rules, set alerts, and receive notifications to quickly address any content issues.
What do customers expect from your retail tech?
Would you like to know what customers expect from your retail tech? We’re here to help you make informed business decisions!
Easier access to self-service solutions
60% of consumers expect easier access to self-service solutions while shopping in their favorite stores. This is why providing personalized experiences that don’t require interactions with other humans is on the rise. Source: Talk by Andrew C. Allison from Google @Retail Arena 2022 in Stockholm.
Mobile self-scanning
According to Retail Optimiser, the number of stores offering mobile self-scanning is estimated to triple by 2027. The main benefit is reducing friction and improving the shopping experience.
Self-checkout
71% of consumers are willing to use self-checkout according to research by the IBM Institute for Business Value in association with National Retail Federation (NRF). Customers expect the in-store experience to be improved, with almost 1 in 3 (31%) desiring faster checkout.
I am convinced to develop my retail tech product, what now?
Providing a phygital (combining the physical and digital) experience in retail is definitely a trend worth watching. If you’d like us to plan the development of your app or service, or consult your retail tech project, write to [email protected], and we’ll answer in no time!