AI continues to be the primary topic of discussion in the retail customer experience as 2025 approaches. However, there are other trends that are gaining traction as a result of a variety of factors that are compelling retailers to become more agile, responsive to consumers, and to gain a better understanding of the retail shopper.
RetailCustomerExperience conducted email interviews with Misty Chalk, vice president of sales, Americas at BrightSign, and Michelle Connolly-Capate, director of sales, enterprise product innovation center at Panasonic Connect, to ascertain their perspectives on the most significant trends of 2024 and their predictions for the year ahead.
What were the top trends retail customers experienced this year?
Connolly-Capate: The retail industry and the overall customer experience are still being affected by labor challenges. Total employment in retail is expected to decrease by 364,800 employees by 2033. However, retail sales continue to climb. What is the customer’s perspective on this? There are fewer representatives available to assist on the store floor, limited inventory on racks, and longer wait periods at the register. Inconsistency in commerce experiences from online to instore also presented a challenge for retailers, who need to capitalize on the return to physical shopping while meeting the demands of newer generations.
Nevertheless, there are still instances where customers are required to spend a significant amount of time browsing aisles, locating employees for assistance, or checking their phone to find information and availability about products and solutions in order to combat this. Additionally, many retailers have integrated technology to assist customers in navigating the store, tracking past orders, and returning items quickly. This causes friction in the buying process and can impact customer loyalty and sales. Digital retail systems, which encompass digital signage, point-of-sale systems, and AI integrations, are indispensable for altering the narrative for 2025 and addressing these challenges.
Chalk: As consumers resume in-store purchasing, retailers are increasingly utilizing technology. Customers are returning in-store, and they want more from their purchasing experiences. The key to successful retail is the creation of experiences that are both personal and convenient for consumers. In order to improve the in-store purchasing experience and satisfy changing consumer expectations, retailers implemented digital technologies, including sensors, signage, and the Internet of Things, this year.
Digital signage, for instance, is reshaping the retail landscape, offering innovative ways for businesses to connect with customers. In-store retail media investments took on a new look in 2024, with numerous big-box and high-end retailers leveraging display technology to reimagine workflows, deploy new advertising strategies and strengthen their products’ position in the market. As digital technologies and deployments mature, retailers are uncovering real-time data that can maximize store operations, in addition to creating a dynamic and interactive environment for consumers.
What trends or tech do you predict will take off in 2025?
Connolly-Capate: Integrating AI into digital retail systems will be key to improving personalization and enhancing customer experience. Customized retail media is one method by which retailers can capitalize on AI in 2025. By integrating the power of AI with the information display capabilities of digital signage, POS systems and kiosks, retailers can always be in front of the consumer and elevate experiences. AI can personalize these experiences without necessitating substantial supervision, thereby expediting the sales process, emphasizing discounts, and recommending pertinent products.
Integration of a technology ecosystem that is beneficial to the customer is the initial step. Although AI has the potential to revolutionize the retail industry, it may result in an inconsistent experience or alienate consumers if it is not implemented with the requisite testing and planning. Trusted technology partners come into play in this scenario. Retailers should search for partners that offer solutions that prioritize the consumer experience at every contact point within their operation. This incorporates solutions that establish a connection between the front and back of the store, thereby facilitating data-driven decision-making that optimizes the customer experience, informs inventory, logistics, staffing, and, ultimately, profits.
Chalk: Digital signage changes ad revenue, data leverage for retailers: The modernization of digital signage has eternally altered the way that information is displayed. The same applies to the content that businesses can display on a daily basis and the degree of control they have over it. The potential for businesses to leverage content and displays to their advantage is nearly infinite with the advent of digital signage and media players. This leads to the emergence of a new revenue stream for retailers: advertising. Businesses ranging from large-scale retailers to small-to-medium-sized popups are reevaluating the methods by which they can monetize the information that is displayed within their stores. The retail media conversation in the upcoming year will be dominated by new advertising revenue models and strategies, which are supported by data collected from these digital touchpoints. For retailers not already reconsidering how to use their facilities to better generate revenue, the time to start is now.