What Is Retail Technology?
The evolution of retail technology became clearer in 2022, as more companies increased their investments. But, as retailers remain busy and buried in the day-to-day of running a business, they may still find themselves wondering, “What IS retail technology?” and “Why invest now?”
We’ve got you covered with a straightforward definition of modern retail e-commerce solutions. Prepare to understand how retailers like yourself are able to better harness their gold mine of first-party data to create personalized experiences for customers and profitable relationships with the brands they carry.
Definition: What Is Retail Technology?
Retail technology is a blanket term that refers to digital tools and innovations that help retailers manage and optimize their operations. Examples of retail technology include augmented reality, cashierless checkout, or automated shelf monitoring and inventory management.
2022 saw tremendous growth in retail media networks, which are forecast to grow 25% every year for the next five years. This type of retail technology provides a seamless way for retailers to deliver personalized advertisements to customers through their websites and mobile apps. Shoppers win by enjoying a convenient experience where they can discover new products, build shopping lists, and capitalize off coupons and rewards. Retailers win by collecting first-party data on consumer behavior within their closed ecosystem.
Consumer data is the new currency for brands eager to personalize their campaigns to gain loyalty and market share. Retailers who can offer insights and direct real-time access to consumers at the point of purchase effectively create a new revenue stream for themselves built on CPG brand partners advertising dollars. This strategy has been so successful that a quarter of retailers deploying retail media networks this year are generating over $100 million in ad revenue—an obvious boon to their bottom line.
What the Retail Technology Landscape Will Look Like in 2023
Now that you know what retail technology is today, you may wonder what the future holds. Going into 2023, continued concerns about inflation, supply chain disruption, and a depressed economy persist—impacting consumer sentiment and behavior. Shopper loyalty remains in limbo as consumers seek cost savings and convenience to weather the storm.
Retail e-commerce solutions will continue to equip businesses in challenging times, as:
- The buyer’s journey has grown more complex; cross-channel shopping is the norm.
- Consumers seek to align with brands that understand and cater to their preferences.
- Digital coupons, rewards, and promotions will continue to sway choice and loyalty.
- As cookies deprecate, closed ecosystem first-party data will soak up ad budgets.
- Industry consolidation favors retailers who retain their retail technology in-house.
Accelerated adoption of retail technology is a relatively new phenomenon—a byproduct of the disruption caused by the 2020 global pandemic. In fact, now is the perfect time to learn how retail technology can take your business to the next level.
Implement Retail Technology with Swiftly-Powered Infrastructure
There are many reasons to invest in retail e-commerce solutions at the start of 2023—from personalized insights and long-term shopper loyalty, to enhanced mobile marketing capabilities and new revenue streams. By harnessing retail technology to strengthen ties to CPG brands and consumers alike, retailers position themselves to thrive in the New Year.
While there are many emerging players in retail technology today, you’ll find the best value in building a system that you own and control. Swiftly is helping to democratize the retail technology lead enjoyed by companies like Amazon and Walmart. Our company helps SMB brick-and-mortars (like Dollar Tree and Save Mart) add a mobile platform, retail tools, first party data, and retail media networks that enable them to monetize their first-party data and compete with larger stores and e-commerce giants.
Explore a partnership Swiftly—to not only understand what retail technology is—but to understand what it can do to keep your business ahead of the trend and make this your best year yet.