Loyalty Blogs

As we have witnessed technological advances in the retail sector over the years, consumers’ behaviour has also changed tremendously. The outlook for consumer spending remains uncertain, but we know that the economy is recovering and technological innovations are reducing costs, enhancing productivity and improving the customer experience.  

We will see more and more picky shoppers who want the best version of the product with a personalized experience, consider affordable pricing as the main factor, and follow sustainable practices with faster delivery. In this blog, we will learn about the major retail trends and how a reliable retail loyalty software like Novus can support innovation to boost customer loyalty in the retail landscape.  

Key Retail Trends in 2024 and Beyond 

By integrating advanced technologies, retail business owners can offer personalized shopping experiences, simplify inventory management and enhance customer engagement. Having a loyalty program like a customer points system for your business where customers are getting rewarded for every purchase can be a great way to boost engagement and encourage repeat purchases. However, keeping updated with the latest retail trends can be beneficial to win customers’ hearts and meet their expectations with higher loyalty.  

Without wasting time, let’s explore the key retail trends that will redefine businesses in the years to come- 

1. Focus on Customer Feedback to Gain Competitive Edge 

In the coming years, it is estimated that brands will start engaging with their customers and listening to their audience to cater for their needs perfectly. For instance, brands making use of social media will stand out as more and more customers are active on social media platforms. Make use of social media to boost interactions among customers and know their experiences.  

Social media will establish itself not just as a platform for brands to sell their products but also as a platform to boost their future growth, enhance product development and increase their reputation. Brands must embrace the power of social media like social listening, which will unlock valuable insights from customer data. 

2. Rise of Digital Resale Sites for Valuable Products at Affordable Prices 

Customer habits will change tremendously with the expansion of the second-hand market based on several factors like economic, environmental, personal, etc. There will be an increase in resale websites shortly and research even says that the global second-hand clothing market will reach a whopping $350 Bn in revenue by the year 2028. 

With the change in buying habits, more consumers will consider second-hand items in daily essentials as well as the luxury market as they look for better quality, cost-effectiveness and value. Many resale websites like eBay, Poshmark, TheRealReal, etc. are witnessing an increase in transactions making the resale businesses grow up to 7 times faster than the usual retail clothing sector. This trend of buying pre-loved items is growing because of reasons like sustainability, affordability, earning by selling, etc.  

3. Growth of Social Commerce To Shop at Customers’ Convenience  

Retail businesses will make use of social media to harness social proof, seamless integrations and users’ tendency to move from search engines to social platforms in the brand awareness stage of the customer journey. Earnings from Social Commerce are expected to grow up to $80 Bn by 2025, which will make it one of the primary platforms for online purchases around the globe. 

Preferences for social media sites may vary due to generational differences as baby boomers prefer old-school options like Facebook and Gen-Z audiences choose newer options like TikTok Shop. Social commerce has become a major attraction in the retail sector across the world. The reasons behind the increasing success of social commerce are direct purchases from platforms without visiting a different website, product recommendations by influencers, social proof, AR filters, etc.  

4. New Payment Methods For Seamless Shopping Experiences 

Customers look for constant innovation when it comes to online and offline payment options and they prefer the ones that offer hassle-free and convenient shopping experiences. They never hesitate to try new technologies as long as their needs are fulfilled. 

Customers today want a quick, safe and easy way to shop and industry-leading payment processors like Visa, Mastercard, etc. are bringing out the best innovation by using biometric technology in transactions. Not just that, shoppers can complete payments in years to come using their palm prints, fingerprints and even facial recognition.  

5. Increase Demand for Retail Media Networks 

Another trend is the rapid growth of retail media networks, which means more companies will offer similar services to streamline their operations. Research says that the global retail media network market will reach an estimated $7.3 bn by 2032.  

Retail media are helping advertisers target audiences with personalized ads using first-party data to the point of sale faster than any other advertising forms. Many retail media networks offer these advertising channels to brands and were made possible by big brands like Amazon, Walmart and Kroger. Walmart Connect retail media network enables advertisers to unlock a new way to reach their target audience using first-party data and personalize their messages.  

6. Prioritization on Sustainability & Ethical Practices 

As more and more consumers become eco-conscious, they demand products and services that prioritise sustainability and ethical practices. This change in customers’ shopping habits shows that retail business owners must focus on sustainability. 

Some ways are making use of eco-friendly packaging, reducing their environmental footprint with the use of recyclable and reusable materials, and working with suppliers who focus on environmentally responsible production tactics. This will help in building trust allowing customers to make informed choices through sustainability efforts.  

Final Thoughts 

After going through the blog, we can see that the future of retail looks promising with retail media networks, resale growth, social commerce and new payment options alike. However, it is crucial to note that the rapid growth of the online resale segment will lead to more competition, which will make retailers struggle to gain a competitive edge.  

A well-planned loyalty program can be a game-changer to reciprocate and reward your customers’ dedication with exclusive benefits and incentives like discounts, event invitations and compensating sustainable actions. Novus is a renowned loyalty program software that enables businesses across the world to build custom loyalty solutions for recognizing, rewarding and engaging customers at every touchpoint.  

Connect with our loyalty experts to build next-gen loyalty programs for your retail business and elevate customer experience to the next level.