Experiences refined for people
77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.
With more ways to shop than ever before, retailers must innovate to meet consumers’ constantly evolving, lofty expectations.
Explore these 9 online retail marketing trends to craft compelling campaigns that resonate with your customers.
Buy now, pay later (BNPL) services offer short-term loans allowing consumers to finance their purchases over a set, interest-free period.
Because of this purchase flexibility, BNPL has become more popular among consumers, especially for oversized ticket items. The average amount financed among BNPL borrowers is $1,000.
BNPL also offers flexibility for lower-income households. 72.6% of BNPL users make less than $75,000.
Offering Buy Now, Pay Later options for oversized ticket items can significantly broaden your customer base, catering to those seeking financial flexibility and increasing overall purchase conversions.
Retailers are testing new customer targeting strategies amidst the Third-Party (3P) cookie phaseout.
With growing concerns over privacy and the implementation of stricter data protection laws, the industry is compelled to innovate while respecting consumer privacy.
Retailers are now turning towards First-Party data, collected directly from customer interactions, to tailor their marketing efforts. First-Party data emphasizes the importance of building direct consumer relationships to encourage brand loyalty and trust.
Additionally, contextual advertising, which aligns ads with relevant content rather than user history, is witnessing a resurgence.
Cookieless advertising challenges retailers to rethink their targeting strategies, placing greater emphasis on ethical data practices and consumer trust. First-Party data, ID-free targeting, and contextual advertising will play an increasing role in replacing 3P cookies.
📚 Related article: Welcome to the Cookieless Future: Testing & Tracking without Third-Party Data: Discover how savvy marketers and retailers are redefining data strategy in a world without Third-Party cookies.
Real-time inventory information offers product availability updates through a retailer’s website or app before a customer enters a store. Customers can check if the items they want are in stock, saving time and avoiding disappointment if unavailable in-store.
According to enVista’s research, 67% of consumers indicated that inventory visibility across online and mobile stores is important. Shoppers will take action if they can see how many items are in stock right now, in the size/color they want, and know the store is close by.
Providing customers with live inventory information across platforms is crucial for a seamless shopping experience.
BOPIS blends the convenience of online shopping with the immediacy of in-store pick-up. Customers can purchase items online and then pick up or try them at the nearest store location, often on the same day.
Since most retailers can’t compete with Amazon’s increasingly fast shipping or scale their membership to Prime status, retailers can offer a multichannel experience through BOPIS. BOPIS gets customers online and to your store, offering the ability to shop across channels.
Also, shoppers are still most likely to discover new brands and products while shopping in stores, so while the customer picks up their item, they may also find additional items to buy in the process.
Incorporating BOPIS into your strategy can reduce customer wait times, lower shipping costs, and drive foot-traffic to physical stores.
Interactive Connected TV ads offer shoppable options with QR codes. Viewers can scan the code and continue their journey on their mobile devices.
Sharethrough found that customers watching a commercial with a QR code were 12% more likely to pay attention. These shoppable ads also increase conversion chances, as 60% of people purchase a product using their phone, tablet, or laptop right after watching an ad.
Utilizing QR codes in CTV ads can create a seamless omnichannel customer journey, offering exclusive deals and driving targeted local engagement, ultimately enhancing conversion rates and brand interaction.
Why are shoppable ads so beneficial to retail marketers?
“Unlike linear TV, Interactive CTV (Connected Television) advertising delivers a more engaging viewing experience. Users can scan the QR code on their TV and immediately access a brand’s website. It’s a great way to get customers from A to B, from awareness to a purchase.”
Retail media involves advertising directly within retail environments, both online and in physical stores, allowing brands to reach consumers at the point of purchase.
Retail media ad spending is projected to reach $59.98 billion in 2024, continuing to grow yearly. As Retail Media Networks (RMNs) proliferate, eMarketer highlights the trend towards strategic partnerships, with 57% of US advertisers preferring a maximum of four retail data partners.
Major players like Amazon and Walmart Connect are broadening their influence through collaborations with social and digital platforms, targeting younger audiences and integrating entertainment with shopping.
Strategic partnerships are essential for brands to stay competitive, widen their reach, and innovate in advertising. These collaborations pave the way for retail and media to increasingly intertwine.
TikTok Shop is revitalizing US livestream shopping by allowing direct sales within its app. While other platforms have retreated from this space, TikTok reported significant early adoption with over 200,000 sellers and 100,000 creators.
TikTok Shop aims to boost livestream sales by enhancing user experience with seamless payments and fast delivery. Gen Z, in particular, is a critical demographic for this trend, with their evolving shopping habits and over $$450 billion in spending power.
Livestream shopping is gaining momentum in the US among Gen Z, with TikTok Shop at the forefront. Brands can use TikTok Shop to connect with younger audiences and adapt to consumer trends.
Local SEO is a strategy that optimizes a business’s online presence to be more visible in local search. This is particularly important for businesses that rely on local customers, such as restaurants, retail stores, and service providers.
BrightLocal’s 2023 Customer Review Survey found that 98% of consumers used the internet to find information about local businesses in 2022, up from 90% in 2019. Businesses should optimize online and offline presence, as 61% of shoppers favor local businesses that offer physical stores and online websites.
Investing in local SEO can drive foot-traffic to stores, capitalize on local shopping trends, and ensure your business is visible to those seeking nearby solutions.
What must online retailers with brick-and-mortar stores do to help with their local SEO presence?
“Local SEO is so much more than simply changing a few of your website’s keywords. Bridging the digital and physical realms for your business is the goal. The best ways to optimize your local SEO are by: creating a seamless online-to-offline experience, leveraging location-based keywords, and actively engaging with the local community to solidify your presence both online and offline.”
Generative Artificial Intelligence (GenAI) uses AI to understand and anticipate individual customer needs, preferences, and behaviors, personalizing the shopping journey through tailored product discovery, recommendations, and customer service.
Nearly 78 million people in the US used GenAI monthly in 2023, with 55% of Gen Z in the US seeking AI-powered curated deals from influencers and content creators.
As technology evolves and consumers’ acceptance grows, retailers invest in GenAI for enhanced customer satisfaction, improved search functionalities, and refined loyalty programs.
📚 Related article: Retail Digital Marketing: What It Is, Types & Strategies: Want to learn expert retail marketing strategies? Explore this guide.
These digital retail trends emphasize the importance of customer-centricity in 2024. Retailers must focus on deeply understanding and responding to consumer preferences, using innovative technologies and strategies to create personalized, seamless shopping experiences.
Partner with KORTX for an exceptional marketing makeover. Our personalized, analytics-driven tactics will captivate your audience and amplify your sales.
Erik Stubenvoll is a Managing Director at KORTX with over 20 years of experience. When he is not learning about his client’s goals, he is on the sidelines with his wife at his daughter’s softball and soccer games or on the golf course.
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