The Retail Technology Leading Digital Transformation
From the global pandemic to supply chain delays, and ongoing inflation, companies have had to navigate a myriad of challenges that require immediate action. Whether it’s accelerating growth strategies or responding to changing consumer habits, retailers must continue to adapt and quickly find solutions that help set them apart. One example is taking a step towards digital transformation—a trendy, frequently used term to define cutting-edge technologies that help build resilience and lead to innovation.
When it comes to retail media, the goal of digital transformation is simple: meet business goals that lead to seamless modernization and tangible growth. Now more than ever, there’s an even greater advantage for those who prioritize implementing digital transformation strategies—and it’s important that retailers and brands follow suit if they want to set themselves apart from the competition and establish long-term success.
Wondering what digital technology trends are at the forefront of the retail media revolution? Let’s dive in.
The Benefits of a Mobile-First Approach
A mobile-first retail approach helps retailers develop a growth strategy that’s specifically catered to the mobile shopping experience. Many people rely on their mobile devices for everything, especially when it comes to shopping. According to Insider Intelligence, retail mobile commerce sales reached $359.32 billion in 2021, which was an increase of 15.2% since 2020. It also reveals that by 2025, mobile commerce sales will likely double to reach a monumental $728.28 billion—accounting for nearly half of e-commerce sales in the U.S. The numbers say it all: mobile is here to stay and must be the priority for retailers seeking to adapt.
A mobile-first approach leans into this opportunity by catering to consumer shopping behaviors and shifting its features according to their shopping experience and personal preferences. A retailer that strategizes with a digital retail platform connected to a mobile app, understands the app provides a key source of personalization, engagement, increased revenue, and source of growth. With a mobile app, retailers can connect with their customers, influence their purchases, and build long-lasting loyalty. Additionally, in the midst of rising prices, effective mobile retail strategies can help people save money by delivering personalized deals and offers in real-time.
Key Mobile Features:
- A retail loyalty program that drives traffic and helps customers save
- Digital coupons and exclusive offers tailored to the customer’s shopping preferences
- Accurate, up-to-date visibility over current inventory and pricing
- A digital shopping list that syncs with current deals and featured products
- Mobile scan and checkout that allows customers to skip long lines in-store
User experience is also a pivotal part of a successful mobile-first approach. Customers who feel positively about their mobile shopping journey are more likely to make repeat purchases, demonstrate their loyalty, and even refer an app to their loved ones. The more satisfied customers are, the more likely they are to return to their favorite retailer, knowing that their experience will be consistent.
Steady Growth in Retail Media
In short, retail media pushes digital advertisements that influence a customer near or at their point of purchase. For example, if they’re about to buy produce at a grocery store, their in-store app may deliver a deal that’s specifically connected to the other items in their shopping cart. This way, the customer will feel compelled to make the additional purchase, as they’ll see that the advertised product is relevant to their needs.
As retailers adopt and implement retail media into their marketing strategy, its popularity continues to grow. In fact, the following statistics reveal that:
- The retail media market will grow by 25% every year to be worth $100 billion over the next five years.
- US digital retail media advertising will reach $41.37 billion in 2022.
So, why exactly are retailers prioritizing retail media? The short answer: it helps connect the in-store and digital shopping experience by adopting a personalized omnichannel approach, which provides customers with multiple touch-points that can further elevate their experience. This allows retailers to win customers’ trust throughout the entire shopping journey, which can help generate significant margin-rich revenue in the long run.
For example, if a customer is shopping at a brick-and-mortar location, they can use the store’s app to access additional product recommendations or unique deals that help them save. By closing the gap between digital and in-store, retailers are able to offer a more tailored, connected shopping journey, where customers can feel more understood—from browsing to purchasing, and even the post-purchasing stages.
The Importance of a Retail Loyalty Program
A retail loyalty program provides special rewards or deals to customers who make repeat purchases. Whether it’s through accumulated points, discounts, or exclusive offers, retailers can win their customers over and incentivize them to return for future shopping needs. Loyal, returning customers bring immense value to retailers that can help expand their reach and stay above the competition.
According to the Ultimate Guide to Customer Loyalty, loyal customers spend up to 67% more than new ones. Additionally, customers who feel emotionally connected have a 306% higher lifetime value with their favorite brand, and are even more likely to recommend it by 71%. In an environment where retailers and brands are plenty, and customers have several options to choose from, loyalty can make a world of difference. If retailers want to take it a step further and drive even greater results, they can pair their loyalty program to a mobile app—and increase store visits through personalized offers, while also enjoying a larger stream of revenue.
Time and time again, a retail loyalty program proves itself to be a worthy investment, especially in the face of a rapidly changing digital world—one that leads to higher sales, more committed customers, and improved digital relationships.
Transform Your Strategy with a Digital Retail Platform
With Swiftly, retailers can truly have it all. Whether you need to develop a robust digital retail platform, elevate your mobile experience, or engage with customers more meaningfully, Swiftly offers the tools to help you even the playing field and have you up and running in six weeks with minimal investment.
Need a one-stop shop that allows you to implement a mobile-first strategy, build a retail media solution, and increase long-term, digital loyalty? Contact Swiftly to learn more about our offerings.