Capitalizing on Emerging Retail Trends

Convenience stores are often at the forefront of retail trends regarding foodservice, snacks and even retail technology. We are amidst a fascinating change in human evolution with the rise of artificial intelligence (AI).

As technology continues to evolve rapidly, the intersection of big data and AI will be able to predict and anticipate consumer shopping patterns. AI may be able to predict what a customer wants for dinner long before they leave their house for work in the morning.

Understanding these technology tools and how to use them at retail will give companies a distinct advantage in growing sales and driving new business. Trend forecasting is the process of researching, analyzing, and predicting the direction and impact of changes in the market, society, culture, technology and environment. Trend forecasting helps you understand your current and potential customers’ drivers, motivations, and expectations and how they might evolve.

Over the next 12 months, retailers can expect to see an even stronger focus on experience-boosting technologies, such as AI and social media, and value-driven shopping options like experiential retail and direct-to-consumer delivery, according to Salsify, a marketing research company specializing in product experience management (PXM), which empowers brands, retailers and distributors to work together to deliver cutting-edge product experiences to consumers without friction.

Salisify identified several trends retailers need to watch as we advance into 2024.

The Growth of AI. What was once a fun consideration has become a crucial part of everyday life. For example, Amazon’s Alexa and Apple’s Siri are already mainstream AI assistants offering insights into daily inquiries such as the day’s weather and directions.

When AI is used in retail to create unique, elevated shopping experiences, Salsify predicts consumers will be all-in.

According to Statista, 41% of respondents believe AI will improve their product recommendations, and 46% think it will increase their chances of finding deals online.

McKinsey & Company reports that 71% of consumers expect personalization, and 76% are frustrated if they don’t receive it. Sixty-seven percent of consumers want brands to give them relevant product or service recommendations during their first interaction.

To meet these consumer demands, Salsify reported retailers should consider elevating their personalized shopping experiences by creating a personified chatbot, like Alexa and Siri, or building an algorithm that will take the personalization process even further.

AI can help prevent you from dropping the ball here by creating push notifications recommending products or reminding users to pick up where they left off on their last visit.

However, the marketing company warned to avoid leaning too heavily into writing assistants like ChatGPT. Consumers want to feel catered to, and a strong AI voice will make them feel like mere transactions.

Social Media Plays a Key Role in Retail. The convenience store industry has always done an excellent job with social media. The industry learned early on that customers enjoy sharing their experiences online and recognized the marketing opportunities.

CStore Decisions has been honoring chains for their social media prowess for more than a decade.

By 2028, social media will be part of the daily lives of nearly 331 million global users, according to Statista. And as this figure continues to grow rapidly, social media and commerce are becoming increasingly intertwined, Salsify predicted. It makes sense that social media and social commerce, often called social shopping, go hand in hand. Social commerce lets users purchase items from their favorite brands and shops directly on their preferred social media platform.

Not only is it convenient and easy, but it allows them to spend even more time on their favorite apps without diverting their attention elsewhere. For retailers, an omnichannel approach could include connecting with customers in a host of ways, including:

• Live stream videos

• Shoppable videos

• Instagram and TikTok

• Mobile ordering and delivery

Regardless of your approach, understanding this is where your customers now play will help you know how they shop and what they are looking for throughout the day. It presents a significant sales growth opportunity.

Understand Segmentation. Segmentation unifies groups of people who share interests, hobbies, backgrounds and more. It’s an excellent way to make your customers feel like they belong. Consider how you deliver ads to each of your target audiences. Salsify specializes in this area and offers marketing suggestions for targeting consumers from specific generations:

• Generation Alpha. YouTube is Gen Alpha’s preferred method for product discovery. The best way to win their loyalty is to collaborate with a YouTube child influencer to promote your products in an unboxing video.

• Generation Z. Gen Z spends most of their time on apps like Instagram and TikTok. Work with popular influencers or celebrities who will resonate with this generation. Emphasize how your products will help Gen Z stay connected with their peers and give them the “it” factor.

• Millennials. Like Gen Zers, millennials spend most of their time on Instagram and TikTok. When targeting millennials, reinforce how your products will improve their quality of life and self-care.

• Generation X. Gen X is an often overlooked generation, but it would be unwise to leave them out, according to Salsify. While they still prefer in-store shopping, Gen Xers won’t say no to a TV or targeted Facebook ad. They’re willing to shell out extra money for quality products, so don’t skimp on the campaign budget.

• Baby Boomers. Baby boomers are staunch brand loyalists, demanding loyalty in return, especially during their shopping experiences. Offering optimized omnichannel experiences across every touch point, such as excellent product pages and visually appealing in-store displays, will keep you on top of mind for a baby boomer.

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