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Businesses need to adopt emerging technologies that can help them maintain their competitive advantage. Along with the rise of technological advancements, consumer preferences are also evolving, making it all the more important for companies to adjust and adapt to the changing times. Salesforce research found that 66% of customers expect businesses to understand their unique needs and expectations, highlighting the need for retail professionals to shift their focus to improving consumer experience.
New and emerging trends in technology are shaping the retail landscape, fostering engagement through unique features that help raise conversion rates. From augmented reality (AR) technology to AI, various tools are now available to help businesses create a seamless shopping experience for buyers. Here’s a closer look at virtual try-ons, AI assistants, and other trends in the retail space:
Virtual try-on feature
AR-powered virtual try-on technology integrates digital perceptual information into the real world. This feature lets your customers preview and fit product offerings virtually before purchasing. Eyewear retailer Sunglass Hut utilizes the virtual glasses try-on feature to help its customers find the right frames that suit their facial features. Buyers only need to choose a model from the site’s selection of products, enable camera access on their device, and select the styles that suit their preferences. Studies show that virtual try-ons can increase sales by up to 30% and reduce returns by as much as 20%, making it a powerful and effective tool for retailers.
AI assistants
Retailers also use AI-powered virtual assistants to handle inquiries through their websites, from order tracking to product recommendations. These AI-enabled virtual assistants are enhanced by leveraging natural language processing algorithms to engage in customer conversations 24/7, providing active guidance in purchasing decisions. IKEA’s chatbot Billie is one example of an AI-powered virtual assistant in the retail space, which can answer customer queries anytime, including inquiries concerning order status. These virtual assistants communicate through text or voice to provide diverse services, such as Sephora’s chatbot, which offers skincare advice.
Omnichannel experiences
Businesses now adopt omnichannel marketing strategies to provide an integrated, personalized consumer experience across various touchpoints. Optical retail brand LensCrafters, for instance, has extended its product promotion to other platforms and industries on top of its product offerings on its website and brick-and-mortar stores. It launched an interactive gaming experience called LensCrafters Eye Odyssey: A World of Optics on Roblox’s online gaming platform. The experience encourages players to get regular eye exams, which is part of the retailer’s services. Salesforce data shows that companies adopting omnichannel customer engagement strategies retain 89% of their customers, making it a pivotal trend for business growth.
More secure payment options
Digital wallets have become a popular online payment method for online shoppers. However, risks of identity theft and data breaches have also become a cause of concern for customers, especially with over 3,000 data breaches occurring last year. As a result, retailers have incorporated more secure payment methods, including Amazon’s Secured Card, which uses industry-standard encryption to safeguard sensitive information like credit card numbers and customer addresses. Other retailers like Ray-Ban also use digital payment services like PayPal, which is generally believed to be more secure than debit or credit card payment platforms because of its fraud protection capabilities. However, cybersecurity in the retail sector is still a key concern; besides more secure payment options, companies must take threats seriously and reinforce a culture of cyber safety among employees.
Business and retail professionals are now adopting emerging technologies to help improve their services. From virtual try-ons and AI assistants to omnichannel marketing and more secure payment methods, enterprises embrace trends that facilitate business growth.
