The phrase ‘new normal’ is starting to sound cliche at this point. But cliche phrases only become that way because they describe a commonly-recognised truth. Customer needs and behaviours have changed and it’s unlikely that they’ll ever return to the ‘old normal.’
If you aren’t adapting to customer behaviours in 2022, then you likely aren’t creating sustainable growth for your business. Here’s what you can expect for retail this year and how you can succeed in the new environment.
What to expect for retail in 2022
- Customers are spending less time in-store and more time connecting online.
But it’s a bit more complicated than that. For example, foot traffic volume has recovered somewhat as the pandemic has waned, but that return to brick-and-mortar hasn’t been quite as triumphant as expected. At the end of 2021, foot traffic was still down by nearly 51 per cent when compared to pre-pandemic levels.
- E-commerce continues to grow and the shift to digital is now irreversible.
According to McKinsey, “the first half of 2020 saw an increase in e-commerce equivalent to that of the previous 10 years.” Before the pandemic e-commerce was already on an upswing, but the past two years or so have accelerated the move to digital. The e-commerce revolution has been spearheaded by businesses themselves and that growth is only expected to continue into 2022 as 75 per cent of retail executives have said they plan to improve online integration.
- Post-pandemic, some customers are wary to splurge and others feel unaffected by the paradigm shift.
As a result, your best customers may no longer have the means to spend like they used to, and customers you never thought to target may feel comfortable spending more than ever before. What your customer prioritises may have shifted as well, as exterior threats have become more of an everyday concern and the quality of a product or experience has heightened importance.
Adapting to this ‘new normal’ is crucial if you hope to maximise engagement with your customers, and like the ‘old normal,’ there are several strategies that you can deploy to stay top of mind.
How to succeed in the new retail environment
Succeeding in this new retail environment requires that you be versatile online. Here are some proven strategies for achieving versatility online:
Integrate your offline and online shopping experiences. It is worth noting that in-person commerce isn’t going away completely. In fact, you should still consider your brick-and-mortar shopping experience even as foot traffic volume continues to slump. The solution here is to integrate your offline shopping experience with your virtual e-commerce experience so that navigating both of these spaces is seamless.
Make your engagement strategy customer-centric. Changing customer behaviours have led to disrupted brand loyalty. To retain your customers, you need to improve engagement in every interaction, and personalisation is a great way to achieve this. However, to personalise, you’ll need to fully understand your customers.
Optimise your use of customer data to tailor the experience to your customer. Effective data capture and optimisation is essential in adapting to your customers’ changing behaviours. You shouldn’t rely on old data to understand your customers–instead, focus on the development of new methods for data collection and analysis. By utilising a Customer Data and Experience Platform (CDXP), you can evaluate the nuances of your customers’ behaviours and discover how best to stay top-of-mind.
For more insights on which tools and datasets you need to achieve, or maintain, your position as a leading brand in 2022, check out Lexer’s guide, “How to Prepare for Retail’s Future: The Complete 2022 Guide.” Download the free guide here.
