Brick-and-mortar and online sales channels still matter, but more and more sales are being generated on social media platforms.
We’ll talk about what retailers can do to anticipate for these trends, including investing in innovation and preparing to add more sales channels.
Retail predictions for 2024
Perks for top spenders and charging for returns
“We will begin to see custom, premium, tailored programs for the top 10% of buyers in 2024. Instead of this elite group getting a holiday gift, they will get sneak peeks into upcoming designer drops, for example. Brands will begin to hyper-focus on community building in a meaningful way.
“We already see this, but a major trend will be brands jumping on the bandwagon of charging for returns. Already, we’ve seen 90% of our brands implementing this. More and more companies will begin to not only charge for returns but limit the amount of returns a customer can make—this will be huge in 2024.”
—Sam Atkinson, CEO/Co-founder, Swap
Every business should reduce the gap between discovery and purchase
“In 2024, businesses must eliminate the gap between discovery and purchase to remove friction. For example, the skyrocketing popularity of social commerce, which blends social media discovery with e-commerce, will redefine successful sales strategies.
“Platforms like Instagram, TikTok, and YouTube have become vibrant marketplaces. They feature shoppable posts and on-site storefronts that enable consumers to discover and purchase products directly within social feeds.
“Expect this to extend beyond retail. LinkedIn already offers native lead generation, and it’s a short hop to something like in-video actions to bridge the gap between discovery and B2B sales. This shift is more than a trend; social commerce sales are projected to increase from $475 billion in 2020 to $3.37 trillion by 2028.
“We’ve entered a new era where brands can create interactive, entertaining content far away from their owned properties or physical locations—and convert viewers to customers in real-time. As customers skip from traditional awareness directly to purchase, businesses must be more proactive audience builders and engagers by leveraging existing platforms.”
—Ashley Hubka, Senior Vice President/General Manager, Walmart Business
AI-generated content will take center stage in the consumer shopping journey
“We’re on the cusp of a significant content shift that will reshape how consumers shop. Ten years ago, we saw the baton passed from professionally generated content (PGC) to user-generated content (UGC), a transition that dramatically democratized and diversified the content landscape. Today, roughly 80% of the content consumed online is UGC.
“AI-generated content (AIGC) will start taking center stage as we move forward. Whether it’s personalized product recommendations or interactive shopping guides, AIGC will offer real-time customization that not only adds value, but also brings a new layer of engagement and authenticity to the shopping experience.”
—Jerry Luk, President/Co-founder, Firework
2024 will be the year of personalized commerce
“The retail landscape has evolved from multi-channel to omnichannel to unified commerce. 2024 will mark the era of personalized commerce—an organic evolution that integrates the essence of the three prior concepts. To truly win consumers’ hearts and minds, brands must embrace hyper-omnichannel, personalized campaigns that they can only accomplish through unified data practices and the evolution of adaptive AI.”
—Lily Rotter, Head of Marketing, Firework
AI will go beyond text-based interactions and gain a “face”
“As technology continues to advance, we expect to see AI evolve from just text-based interactions. AI will gain a ‘face,’ offering visually rich, real-time video-based conversations to assist consumers at different stages of their buying journey. This advancement won’t just be limited to customer support scenarios, but will extend to proactive sales and lead generation as well.
“Imagine walking into a virtual store and being greeted by an AI assistant who not only knows your style and preferences, but can also showcase products in real time through interactive video. This development will be groundbreaking, transforming how we think of shopping, customer service, and the overall online experience.”
—Vincent Yang, CEO/Co-founder, Firework
Retrieval-augmented generation and model fine-tuning will come together to make AI-generated content smarter and more effective
“This year, a revolution in AI-generated content (AIGC) will leverage the combination of retrieval-augmented generation (RAG) and model fine-tuning to meet the increasing demand for sophisticated, personalized content by brands and retailers.
“Take digital human chatbots, for instance. Powered by fine-tuned models, they can engage with users in line with a brand’s personality, communication style, and messaging tone. Simultaneously, RAG enables these chatbots to provide real-time, informed responses by pulling in live data—such as promotions, reviews, and FAQs. Interactions from RAG-enhanced conversations further improve the model through fine-tuning, creating a cycle of enhancement.
“However, it’s crucial to emphasize that innovation must adhere to data governance and compliance regulations. AIGC platforms that balance cutting-edge experiences with unwavering data protection will lead the industry in 2024.”
—Rick Zhuang, Chief Technology Officer, Firework
RELATED: Read about our 2024 AI predictions and our workplace predictions for 2024.
Source:Nellie Akalp , www.allbusiness.com, [publish_date
Source Link