Industry executives and experts share their predictions for 2022. Read them in this 14th annual VMblog.com series exclusive.
Experience and Design Trends for Retail
By Derek Chin, VP of Innovation, Nerdery
As we enter the third year of the pandemic,
things once seen as temporary fixes to companies' digital needs are becoming
permanent solutions. Customer experiences on digital platforms need to be just
as refined as those in physical locations. Not to mention, supply chain
shortages and inflation will continue to pose a significant obstacle to revenue
growth, requiring organizations, especially in retail, to use data in new ways
to predict trends and meet demand. With that in mind, here are some key things to
look for in the months ahead:
- Rapid digitization will continue to progress in the retail space. Retailers are investing millions of dollars into their digital
infrastructure as the customer experience pivots to a hybrid of online and
in-store. For years, organizations have relied on antiquated software to
observe customer shopping patterns, demand spikes, and inventory. As this
change becomes permanent, older digital infrastructure becomes incompatible
with modern fulfillment technology. Everything from inventory observation to
in-store pick-up will be modernized and more streamlined.
- Digital operations that support BOPIS will become permanent. Retailers looking to capitalize on the hybrid shopping experience bet
big on their BOPIS options in 2021. For instance, Target stores across the
country now have established Order Pickup lanes and departments within the
store, showcasing that BOPIS strategies are here to stay in 2022. These BOPIS
areas are equipped with registers, freezers, and even their own stock room with
set inventory for high-traffic items. While many stores like Aldi planned to
offer these programs during the pandemic only, they've proven to be highly
successful and will be around for the foreseeable future.
- Inflation and supply chain issues are going to have rippling effects
throughout the year. As the labor shortage continues
to have a wide-ranging impact across the global economy, deliveries and
fulfillments continue to be a challenge, especially for organizations without
the right digital infrastructure in place. As demand for products and services
grows, prices are catching up with the inflation rate - resulting in massive
headaches for retailers. For those reasons, it's crucial to stay on top or stay
ahead of demand patterns.
Most importantly, retailers need to understand
that the customer experience is forever changed. By adjusting their sales
practices to meet the new needs of their clients, retailers of all kinds can
ensure their revenues don't plummet in the months ahead. One of the best ways
they can accomplish this is by adopting customer-centric practices to continue
to generate revenue and retain business. In the retail space, the customer is
always right -- even the digital customer.
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ABOUT THE AUTHOR
Derek Chin, Nerdery, VP of Innovation
Derek is an impassioned innovator with a breadth of experience bringing new ideas to market. As both an entrepreneur and corporate innovator, Derek brings a relentless passion for developing digital product strategies to disrupt markets and create amazing experiences for users. With the combined experience of innovating inside Fortune 100 companies and launching venture-backed startups, Derek brings a unique perspective on what it takes to be successful in both environments.
As an entrepreneur, Derek successfully bootstrapped his own startups and was on the core team that launched Bright Health, a venture-backed startup that raised $240 million and built a health insurance company in less than nine months. As a corporate innovator, Derek began his journey as an Entrepreneur-in-Residence at United Health Care and from there, went on to consult for a number of ambitious endeavors, developing new products and launching new ventures with companies like Google, Cargill, Purina and Polaris.
Today, Derek leads Innovation and Product Strategy at Nerdery and enjoys building collaborative teams to pioneer new concepts with clients. Currently, his clients are focused on building ecosystems that go beyond singular product innovation and begin to seamlessly blend traditional products with digital platforms to create unparalleled experiences.