The COVID-19 pandemic changed almost everything for retail marketers. Retailers were forced to revise their annual plans and creatively pivot almost overnight. Ecommerce and digital channels exploded while brick-and-mortar shopping numbers started crashing. Tom Treanor, CMO, Treasure Data, discusses what the year 2021 may hold for retail marketers.
Retail marketers will look at 2020 as the year that changed everything. Without warning, annual plans were thrown out the window and revised extemporaneously. Amid digital channels exploding and brick-and-mortar shopping numbers plummeting, the industry got a crash course in creative pivoting. It got more creative. And smarter.
What impact will the most unprecedented year in modern history have on 2021? Here are five trends retail marketers should expect to see in the coming year.
Post-Vaccine, Clienteling Will Drive Consumers To Return in-Store for Forward-Looking Retailers
With COVID-19 vaccines now being distributed, many retailers are hoping that a return to more consistent in-store commerce will follow. The stores that will fare better are those that have best utilized the newly created position of online retail associate during the pandemic. This position uses contact center tools to facilitate digital clientele services with customers. The data created by transactions via online retail associates will best inform businesses how to transition customers back to brick-and-mortar stores.
Learn More: 5 Ways Location Intelligence Helps Retailers Drive Better Business Results
Demand Sensing and Forecasting Using Deep Learning and Real-Time Customer Data Will Become Essential for Retailers
Demand forecasting was anything but traditional in 2020. The pandemic left retailers trying to make predictions for the holidays based on data sets with no historical reference. The lesson learned from this past year is that retailers will need to rely more on a real-time demand-sensing paradigm with real-time customer data as the foundation. They should also close the data gaps they have between clickstream, intent data, and POS data.
Further, retailers can find a competitive advantage by leaning into a comprehensive omnichannel experience informed by consumer behavior across all channels. Businesses that quickly pinpoint and meet customers’ immediate needs and preferences stand to gain a distinct market advantage.
CPG Will Thrive With D2C
Consumer packaged goods companies have typically relied on retail and ecommerce channels to gain market traction, but that model is clearly shifting. Expect to see more recognizable CPG brands adopting direct-to-consumer tactics to thrive in these unpredictable times. CPGs perfecting D2C initiatives are relying heavily on customer data to differentiate their brand experience with education, personalized experiences, and one-to-one support.
Retailers Will Mass Personalize Shoppable Video, Especially on TikTok
TikTok’s status as a vehicle to influence consumers took hold in 2020 and provided retailers a new opportunity to reach younger customers: shoppable videos. This interactive form of content allows shoppers to make purchases directly from the content, eliminating search. We expect shoppable videos to generate exciting data that retailers can use to refine their approach to Gen Z shoppers further.
Learn More: How Can Retailers Define and Deliver Incredible Customer Experience?
Auto Industry Will Speed To Digital
The pandemic forced auto dealers to shift from a sales model that has been traditionally reliant on face-to-face interaction to a digital-first environment. Those who are succeeding have created online experiences that appeal to people moving from cities to car-dependent suburbs or commuters not feeling comfortable yet to take public transportation. Expect automakers to further perfect online functionality to leverage digital retailing channels as platforms for product discovery, research, configuration, pricing, purchase and more.
The silver lining of 2020 is that retailers were forced to dream up the kinds of creative marketing campaigns that they might not have attempted otherwise. And to maintain market relevance, many retailers adopted omnichannel-focused technology at a faster rate than ever before. While the emergence of such creativity and technology may not have been the plan, it has certainly made marketers more nimble and ready to adjust to seismic changes. The result is that consumers will have more customized options than ever before, and marketers are more prepared for what is next. A true win-win if ever there was one.