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.