Troy Baldwin • Director, Offering Management

The days were brisk for NRF 2024, the National Retail Federation’s annual convention. However, the 40,000 attendees in New York City were warmed by sunny news: the holiday season was a success, with reported sales growth of 3 to 4%, and the outlook for 2024 is positive.

During the three-day show, our Compucom events team met with our customers, partners, and other retailers, took in the Big Ideas sessions, and interacted with some of the latest retail innovations, such as the bitHuman digital helpers, an interactive AI platform tasked with answering questions for attendees about navigating the event.

Here are our three main takeaways from NRF 2024.  

Constant Innovation for the Win

While retailers often realize that investment in innovation must be ongoing, knowing where to place your bets can be hard.

In our one-day spot survey asking attendees their primary concern for the technology aspect of their business, the largest number (40%) selected “Navigating technological trends to get digital transformation right”.

This is where having an experienced retail technology partner can help. Combining their expertise with your knowledge of your customers provides the best guidance for where to put your innovation efforts — because it’s not always the commonly advised path forward that will work best for your company.

Ed Stack, executive chairman of DICK’S Sporting Goods, related the story of how his company went against prevailing advice that brick-and-mortar stores were over, trusting themselves and their customers and instead expanding the size of their stores.

Winner of the 2024 Innovator award, Stack got it right. By shifting the role of physical stores to fit with their digital transformation, they created innovative customer experiences such as batting cages, rock-climbing walls, and the ability to scan a shoe and see all sizes in stock, helping them become the largest omnichannel sporting goods retailer in the United States.

Customers’ Expectations Have Risen Sky-High

A common theme was talk of the high expectations of consumers and the need for retailers to be highly customer-centric. This was reflected in our poll, with 22% selecting “elevating the customer experience by sourcing, optimizing, and supporting technology that helps you focus on the customer” as their main concern.

Innovations from a few of our longstanding OEM partners focused on this need:

• Microsoft had a prominent booth showcasing the value of AI for unlocking, among other things, new shopping experiences and store associates’ potential by using generative and conversational AI to build meaningful in-store and online experiences (phygital experiences).
• Intel showcased RealSense, a technology that gives devices depth perception capabilities and is transforming retail applications by creating better customer experiences. 
• Lenovo showed off their AI-powered end-to-end retail solutions designed to enhance safety, security, and intelligence for retailers and shoppers across various categories, including Smart Promotion, Smart Shelf, and Smart Checkout.

“AI” was the Buzzword on Everyone’s Lips

AI has been a buzzword in many industries for a while now. At NRF 2024, it was clear that AI is not just a trend but a game-changing tool for retailers. Most exhibitors focused on its ability to analyze customer behavior, predict trends, manage inventory, and provide personalized experiences, but as we discussed with attendees, AI can also help retailers:

• Solve networking challenges and operational inefficiencies through AIOps (Artificial Intelligence for IT Operations).

• Improve the digital employee experience for their sales associates by providing insights on how your IT team can improve users’ interactions with digital touchpoints.

Implementing AI is not a simple task. MSPs can provide the necessary expertise and resources to implement AI solutions, allowing retailers to reap the benefits without having to build their own teams.

Another Great NRF Show Under Our Belt

Compucom’s team enjoyed seeing the excitement around retail innovation at this year’s big show. We know helping our customers innovate with the right technology is crucial for driving their success. Contact us today to learn how to advance your retail workplace with the right managed service provider.

The post NRF 2024: The Future Looks Bright and 3 Other Takeaways from Retail’s Biggest Show appeared first on Compucom.

Emma Mak • Staff Writer

The rise of the “zero consumer” 

Are you a “zero consumer”? A rising global phenomenon, these consumers have zero boundaries (drifting between online and in-store), zero loyalty, zero moderation (either scrimping or splurging), and zero patience (they want it now).  

They also consider net zero as a buying factor. But while sustainability and social responsibility weigh on their minds – these shoppers don’t want to lose out on value. The average consumer is tightening their belt. As we begin 2024, The Conference Board projects real US consumer spending will drop 1.1% in the first quarter and 1% in the second quarter.

With this typical profile of who retailers are selling to, let’s dive into some trends that might help win over the zero consumer in 2024. 

Contactless Checkout  

Who relishes the thought of long line-ups that place you within easy sneezing distance of other mall customers? One good outcome of 2020 is raised awareness of the importance of hygiene, which accelerated contactless checkout trends. Customers like the option of paying for their purchases with phones or credit cards without touching a keypad or interacting with a cashier. This makes the shopping experience safer and speeds up the checkout process — a welcome efficiency improvement, especially with the current shortage of retail workers.

Not all consumers will choose self-service kiosks. Self-checkout may mean shorter lineups, but some don’t wish to contend with the frustration of scanning items and possibly troubleshooting for themselves (unless there’s very attentive customer support).  

A company that has really nailed creating a great checkout experience is Uniqlo, a Japanese clothing manufacturer and retailer. Dispensing with the need to scan items, they have a checkout process for which customers only need toss purchases into a container bin. Radiofrequency identification chips (RFID) embedded in the price tags detect and record the price of all the goods in the bin, making it an effortless experience for consumers. The self-checkout terminals have even become a signature element of the Uniqlo store experience — customers rave about them. 

Sustainability Influence 

As many grapple with climate anxiety these days, consumers want to know that the products they buy are sustainable and ethically produced. Retailers that embrace sustainability and social responsibility will not only be doing the right thing — they’ll elevate their brand in the eyes of consumers. This includes using eco-friendly materials, reducing waste, and supporting ethical labor practices.

A leader in the realm of prioritizing sustainability is Target. They are on their way to achieving key sustainability goals such as circular design principles (thoughtful material choice, durability, reparability, and recyclability) and 100% renewable electricity by 2030. The company claims its efforts have enhanced its brand reputation, customer satisfaction, and loyalty. This is backed by the numbers; their annual revenue for 2023 increased by 2.94% from 2022. 

Leveraging AI for Personalization and Customer Experience 

Zero consumers are authentic and well-meaning — but a little fickle. They’ll let loyalty fly out the window and give another brand a try if it makes their dollars go further. The rapid expansion of online shopping makes this easier as they can quickly bounce to competitors’ sites or find other sources through social media.  

Retailers can combat this by creating a stronger emotional connection via personalization. Using AI-powered recommendations to harness the power of customer data, such as past purchasing behavior and preferences, retailers can help customers find products relevant and interesting to them. Consumers love the value this creates. Tailoring marketing and sales strategies to the right audience increases customer retention which is smart business.

Today and in the coming year retailers are leaning into artificial intelligence (AI). According to Retailboss.co, “the retail landscape is poised for a transformative shift driven by the relentless march of artificial intelligence (AI).” 

Navigate the Trends with a Managed Services Provider (MSP) 

Innovation in retail has skyrocketed. In the last three years, there have been over 133,000 patents granted. Companies placing technology at the forefront of their business models continue to leave their competition in the dust.  

Keeping your business agile and knowing your customer will always make for solid strategy. With all the innovation competing for attention, it’s also crucial to not fall for hype and take a pragmatic approach to evaluating whether emerging technologies will help you reach your goals. Besides infrastructure support and services to keep your sales and back-office working, having an MSP as your strategic partner helps you make the right moves to transform your business and optimize the customer experience for today’s zero consumer. 

In this series:

• Retail Trends 2024: Let’s Get Phygital

The post Retail Trends 2024: Delivering for The Zero Consumer appeared first on Compucom.

Emma Mak • Staff Writer

Surprisingly, Olivia Newton-John’s lyric, “Let’s get physical,” was not actually about working out, but her aerobics-themed video helped make the catchy but cheeky song a runaway hit in the exercise-crazed 80s.

Just as the video transformed “Physical” into an aerobics anthem, phygital experiences enable retailers to dramatically broaden and enhance the experience of their brand and products. By integrating the in-person experience of physical stores with interactive and easy-to-use digital experiences, merchants can explore innovative methods to better engage their customers.

Showrooming and Webrooming 

Today’s consumers shop online a lot, but more than 85% of US retail sales still occur in physical stores. Savvy consumers want the best of both worlds. Showrooming — visiting physical stores but buying online — gives them the tactile experience of the products with the convenience and savings of online shopping. It’s especially useful for trying out higher-priced items before buying.

The opposite side of the coin, webrooming, is popular among Gen Z customers, who prefer to research products online before buying them in a physical store. Its perks include getting items immediately, more straightforward returns, no shipping costs, and supporting local businesses.  

Having both options available to consumers can work in a retailer’s favor: online shopping has lower overhead, but online advertising is expensive; in-person shopping provides a chance to increase brand loyalty through personal interaction and the creation of a real “brand experience” that is harder for retailers with only an online presence.

Great Customer Experience (CX) For the Win 

Retailers are increasingly turning to phygital experiences to enhance customer engagement and satisfaction. CX matters; it’s so important that 86% of buyers are willing to pay more for great CX.  

Examples of raising the bar on CX include:

• In-store retail media using interactive displays and kiosks that can help capture attention and drive sales. For example, Walmart’s kiosks help customers locate specific products in the store and provide wayfinding.
• Incorporation of virtual reality (VR) and augmented reality (AR). Many examples of the use of these technologies can be found in the beauty industry, including Estée Lauder.
• Expanded digital content coming directly from store shelves or in the fitting room. For example, digital signage or QR codes with recipes, coupons, or product information or H&M’s smart mirrors.

Instant, useful content accessible right where a potential customer stands, product in hand, deciding whether to place it in their cart or back on the shelf, can dramatically increase value for the customer and influence their decision to buy.  

How a Managed Services Provider (MSP) Can Help 

Unlike fads that have come and gone, like legwarmers and outside-of-the-gym headbands, phygital experiences are an ongoing trend in retail. Creating successful ones requires that  retailers get omnichannel right. As a bonus, omnichannel gives them access to valuable data that can help increase sales opportunities and customer loyalty. 

MSPs can help retailers stay on the cutting edge in CX Besides infrastructure support and services to keep your sales and back-office working, having an MSP as your strategic partner helps transform your business to make innovative phygital experiences possible.

In this series:

• Retail Trends 2024: Delivering for The Zero Consumer

The post Retail Trends 2024: Let’s Get Phygital appeared first on Compucom.

David Krauthamer • Staff Writer

Technology and Services Continue to Drive Strategic Planning

Digital Transformation helps companies enhance their operations, improve customer experiences, and stay ahead of the competition. In 2024, it will continue to be a significant factor in the success of enterprise organizations. Companies choosing to strategize with a bold digital transformation path that embraces emerging technologies will be the ones to thrive in the coming years.   

As we look forward to 2024, backed by our discussions with customers and analysts, we anticipate digital transformation efforts are best focused in the following ways:  

1. Artificial Intelligence (AI) Will Become the Norm

AI has already made a considerable impact on the business world. Organizations will continue looking to AI-powered tools to automate processes, improve analysis and decision-making, and enhance employee and customer experiences, integrating AI into many aspects of business operations, from customer service to supply chain management. 

2. Cybersecurity Will Remain a Top Priority

As in previous years, we expect a strong emphasis on cybersecurity as organizations continue protecting their data and systems from attacks. The ongoing prevalence of the distributed workforce means the risk of cyber threats shows no sign of ending.

Companies must provide ongoing education to their workforce regarding best practices for guarding against attacks and invest in advanced security measures, such as AI-powered threat detection.  

3. Sustainability Will Continue to Guide Business Decision-Making

Sustainability is already a top priority for many organizations, and this trend will continue in 2024. Companies will take a more comprehensive approach, looking for ways to reduce their carbon footprint and operate more sustainably. This will involve leveraging digital technologies to improve energy efficiency, reduce paper usage, and optimize transportation.

Companies that focus on reducing eWaste can have a big impact on the fastest-growing solid waste stream in the US. 

4. The Internet of Things (IoT) Will Become Even More Valuable to Large Companies

IoT already impacts many industries, and we predict its adoption will grow rapidly in the next few years. In 2024, we will see more organizations leveraging IoT devices to collect data, automate processes, and enhance customer experiences. This will include using smart sensors, wearables, and other connected devices.  

5. The Relationship Between Human and Machine Will Grow Stronger

As AI becomes more ubiquitous, we predict companies leveraging collaboration between workers and AI will benefit the most. When used effectively, AI can free workers from grunt work, augment their analytical capabilities, and save businesses from costly human errors. Companies who equip their talent with powerful AI tools for valuable and interesting work like cost and risk reduction for IT Operations will get the best ROI and retain and attract the best employees. 

Digital Transformation: The Key to Staying Competitive 

According to a recent Forbes article, “Digital transformation doesn’t end – it’s an ongoing process, and the breakthrough trends that have made 2023 one of the most exciting years for innovation will continue to reshape our world in many exciting ways.”

We believe that digital transformation is more than just buying the right technology. It’s planning with a purpose and a goal in mind. It’s about driving growth, attracting and retaining top talent, and everything we’ve talked about so far. But most of all it’s about positive outcomes and meeting your business objectives.

Now, we understand that digital transformation can be a daunting process for many organizations. The speed at which technology evolves can make it challenging to keep up. However, investing in digital transformation and the technology and services that power it is crucial to staying competitive in the future. By embracing new technologies and leveraging them to enhance their operations, companies can improve efficiency, reduce costs, and create better customer experiences.

Make a Flexible Employee Experience Possible

One of the biggest reasons transformation efforts often fall short is a lack of understanding and experience to implement them successfully. Our experienced and knowledgeable consultants can help you realize your digital transformation objectives while achieving maximum ROI. We want to become your trusted advisor and go-to source for all things IT: providing technology solutions, transformative professional services, user-centric managed services, and IT staffing. 

The post 2024: Five Digital Transformation Trends appeared first on Compucom.