Embracing Top Retail Tech Strategies for 2024

In the rapidly evolving retail landscape, 2024 is already proving to be a crucial year for retailers to improve customer acquisition and retention. Analysts report that global expenditures on digital transformation initiatives will reach $3.4 trillion by 2026, with software innovation being the driving force behind trends like immersive shopping experiences, redefining the in-store experience, and the rise of plug-and-play artificial intelligence solutions.

Augmented Reality: Mimicking Brick-and-Mortar Ambiance at Home

While e-commerce shopping is preferred by 56 percent of consumers, it’s often difficult for them to have an immersive experience while browsing. That shirt looks great online with its curated photoshoot and model, but how will a shopper know how it will look on themselves before buying? Consumers want to visualize their purchases in their own lives, but e-commerce has historically struggled with creating the immersive experience that brick-and-mortar provides.

Retailers leveraging augmented reality (AR) technology enable customers to virtually place products within their personal spaces using smartphones or other devices. For example, Ikea's Place App allows shoppers to use their smartphones to virtually insert furniture and other items throughout their homes to visualize exactly how everything will look. Likewise, Warby Parker allows consumers to use its AR-enabled website to “try on” several pairs of glasses and find the perfect frame from the comfort of their couch.

This not only bridges the gap between online and in-store shopping experiences, but it also builds a sense of confidence in the customer's purchasing decision. For retailers seeking a competitive edge around the online shopping experience, AR delivers a visually engaging and interactive experience that turns browsers into buyers and keeps them coming back regularly.

Contactless Kiosks: A New Way to Shop, Eat, and Check Out

The brick-and-mortar shopping landscape has been undergoing a continuous transformation, fueled by changing consumer preferences and the need for enhanced safety measures, especially in a post-COVID-19 world. Contactless kiosks are emerging as a powerful tool to provide a safer and more convenient shopping experience for in-store customers.

Ink’d Greetings is an emerging greeting card company filling in the massive gap surrounding customizable and on-the-spot cards. How frustrating is it to pop into the card section of a store and not be able to find the perfect Valentine’s Day card? Plus, as retailers struggle with staffing shortages, it’s not always easy to find an associate to ask for help. Ink’d provides a contactless shopping experience where customers can personalize greeting cards and print them on the spot.

And it’s not just retail that’s expected to see a rise in contactless kiosks. McDonald's, Taco Bell, and Dunkin have been experimenting with this technology and allowing customers to order via a kiosk.

These kiosks allow customers to browse products, access information, and make purchases without the need for physical contact with humans. From self-checkout stations to interactive displays, contactless kiosks cater to the evolving expectations of tech-savvy, health-conscious, and on-the-go consumers. In a post-pandemic world where hygiene and safety concerns remain paramount, retailers embracing contactless kiosks are not only meeting customer expectations but also differentiating themselves in the competitive retail landscape.

Using Over Building: Don’t Reinvent the Wheel With AI

The usage of AI is an initiative that almost every company is working towards, but it's labor-intensive and expensive to build solutions in-house. In 2024, retailers will benefit more from partnering with an experienced software developer to leverage existing solutions rather than tackling the costly and complex endeavor of creating/hiring a team to build a solution from scratch.

AI has been an essential tool for obtaining insights into customer behavior, creating personalized shopping recommendations, predicting and analyzing inventory needs, and managing an efficient supply chain. While AI has become a ubiquitous technology across industries, the challenges associated with building AI solutions entirely in-house are substantial. From prototype development to ongoing maintenance, hiring and retaining extra staff to build and upkeep, and an added layer of staying abreast of ongoing AI needs, it’s far too expensive and time consuming to take on by yourself.

In 2024, retailers will recognize the value of partnering with AI development experts that can either create customized AI tools that fit the business or integrate new tools among an existing AI stack. These retailer-vendor partnerships allow retailers to leverage the expertise of established tech providers without the need for extensive in-house development teams. This not only accelerates the implementation of AI technologies, but also proves to be a cost-effective strategy.

By adopting and expanding upon pre-built AI solutions, retailers can work with their partners to customize these tools to suit their specific needs and ultimately provide a more tailored and efficient solution for their business. This shift empowers retailers to stay agile in a dynamic market and swiftly respond to changing customer demands.

As we navigate the retail landscape of 2024, it's evident that embracing new technology isn't just an option but an essential and ongoing initiative. AR, contactless kiosks, and the shift from building to buying and customizing AI solutions are just a few ideas within a larger digital transformation strategy. The future of retail lies in the seamless integration of innovative technologies that elevate the customer experience. Those that fail to adapt risk falling behind in the era of digital transformation.

Sean Richards is the head of quality and growth for Vincit, a leading international software development and design company that excels in digital and commercial transformations.