Over the past 12 months, retailers have been hit hard by supply chain issues, price inflation, economic uncertainty, and geopolitical events, all of which have weighed on profits and slowed the business. Over the past few years, leading retailers have realized the promising potential of mobile technology in retail.

(Source: https://www.pwc.com/sg/en/publications/assets/page/the-consumer-transformed.pdf)

A new year has brought optimism and a renewed interest in the retail sector. A unified customer experience and a mix of traditional and online purchasing methods will shape the future of retail.

Augmented Reality(AR)

Augmented reality is one of the key components of digital transformation. Google found that 66 percent of shoppers consider AR a tool to aid their shopping decisions. However, Snapchat estimates that by 2025, over 75% of all consumers worldwide will routinely utilize augmented reality when purchasing.

Here are some of the best AR practices:

Color Matching

Even when the paint or lipstick is in the customer's hands, it can be hard to predict how it will look in the home or how it will contrast with the customer's skin tone. Judging a product's color through a screen is an even greater challenge.

By superimposing a sample of paint or lipstick on top of a photo, augmented reality (AR) can help consumers find the perfect color match.

Virtual Fitting Rooms

Clothes shopping online has its own set of difficulties. For example, it's not always easy for a shopper to tell how a garment will fit their body type just by looking at a product photo.

​​Interactive In-Store Displays

Keeping clients interested enough to purchase is crucial after they visit a store. For example, putting up AR-enabled displays in your store can let customers peruse your inventory, make customizations, and locate things that complement their tastes and skin tones.

Virtual Try-Ons

The use of augmented reality (AR) by merchants and brands allows customers to virtually try on things such as hats and spectacles, similar to virtual fitting rooms.

Space Visualization

It's hard to visualize how a sofa will look unless it's already there. Customers can use AR to see how a huge piece of furniture will look and fit in their space before making a purchasing decision.

Gaining and keeping clients' interest is essential to every business's success. Keeping customers amused as they peruse your wares and providing them with a means of engaging with your brand can result in repeat business.

Provide Additional Content

After the sale is complete, it takes a long time to build a relationship with a customer. Maintaining customer loyalty requires providing relevant information about the brand and its purchase.

Here are some benefits of AR:

Takes the store to the customer - AR allows customers to see products without visiting physical stores.

Offers immersion opportunities - AR can greatly influence buying decisions. Also, it can provide an immersive retail experience for the customer.

Enhances customer experience - AR is a great tool which greatly improves the customer interaction with the company or brand. And, it can greatly enhance the customer experience.

Elevate the Digital Experience

Merchants should keep considering ways to improve the mobile shopping experience to complement the in-store one.

1. Deliver personalized service

A dedicated sales app empowers sales teams with unique knowledge about each customer. Your sales teams can form stronger connections with them over time by tailoring each step of the customer's experience to their specific needs. Personalized and curated service paves the way for loyal customers.

2. Offer timely discounts and promotions

Also, customer data available digitally can help sales reps check pricing, offers, and promotions effortlessly. Moreover, customers won’t need to visit offline stores to check prices, offers, or promotions. They can do all these online. As a result, customers will be more likely to buy from you due to the convenience. Hence, you must elevate the digital experience for customers.

3. Remove hiccups in customer journey

Fast and integrated communication with the customer on every platform they interact with your brand is essential. From mobile apps to in-store displays, digital platforms are a bridge between all the possible access points your customers may use to interact with you.

Data-Driven Marketing

Predictive analytics is driving the future of data-driven marketing. It helps businesses reach the right audience, personalize content, and optimize marketing strategies more effectively. Here are the most impacting benefits of data-driven marketing in retail:

1. Cost Efficiencies

Analyzing the effectiveness of each department and marketing approach is essential in the transition to a data-driven retail model. Companies can cut spending if problems are identified and fixed or eliminated.

As a result, everything from underperforming marketing channels to brick-and-mortar establishments is affected. For example, a manufacturer can use the data to analyze the effectiveness of the store's software, programs, and message to determine which strategies and methods are most effective.

2. More Agile & Responsive to Consumer Trends

You can analyze a company's actions internally and its external environment. By keeping tabs on and understanding customer preferences, forward-thinking retailers can continue to be the "it" spot for the latest and greatest. Retailers can learn about their customers' preferences and trends by observing their spending habits and trying different approaches.

3. More Agile & Responsive to Business Trends

Retailers can adapt and execute new tactics internally to promote better growth by keeping up with cost efficiency and consumer trends. For example, retailers can reduce the likelihood of customer defection by allocating resources to the points of contact with the company or the locations where customers go for assistance.

4. Detect New Opportunities & Act Quickly

There is a steady emergence of novel distribution methods, marketing approaches, and wares. Stores can use a data-driven approach to anticipate consumer demand and capitalize on emerging trends. Retailers should avoid missing out on lucrative possibilities by keeping tabs on the evolution and development of their tools, techniques, and products.

5. Create Stellar Customer Experiences

Marketers invest much time and energy into developing and preserving the company's brand. This work shows up in logos, retail design, and marketing materials. It's crucial to focus on creating a memorable experience that draws in your ideal client base, but ultimately, you want to increase revenue and strengthen customer loyalty.