Technology & Retail: 2023’s Dynamic Duo

The case for eCommerce has been made- and the data holds its verdict. Shoppers are quickly adapting to modern technology, and eyes are on top retailers to match the pace with intuitive, easy-to-integrate, effective technology that makes the retail experience better for all. But are businesses leveraging high-tech retail solutions to their full potential? 

This article seeks to analyze this new age question with an age-old mnemonic: the 4Ps of marketing. As businesses worldwide work to bring innovative, cutting-edge Products to consumers, here’s how Price, Place, and Promotion are performing in the marketplace.

Promotion: Consumer Expectations Soar

Today, 80% of consumers are willing to share personal data in exchange for deals and offers: 54% expect a personalized discount within a day, and 32% within an hour. This trend is closely followed by new-age disruptors such as Nike by You, Stitch Fix, Amazon, Olipop, etc., all of whom have invested heavily in the latest marketing tools. This capability to generate directed emails, eCommerce portals with personalized recommendations, and post sale value-added services and support, has won them sales, loyal shoppers, and brand value. While automated solutions seemingly dominate this field, the 2023 Retail Tech Report by Intelligence Node showed that 90% of retailers leverage AI-driven technology to some, but not a significant extent of their digital strategy- indicating a gap that is yet to be optimized by modern technology. 

Place: Omnichannel Remains Pivotal

Hybrid shopping uses technology to converge the best of offline and online shopping experiences. 86% of consumers will use at least 2 different channels (and 70% will use at least 3) when making a single purchase, making omnichannel tech utilization a critical factor in user experience.

Many tech-forward brands have optimized their online and offline operations to merge these experiences for shoppers. For in-store shopping, this entails innovative logistics and inventory management, flexible payment options, contactless shopping, and multiple delivery options, to reap the convenience and benefits of online shopping. Online, this implies a need for immersive experiences, and even intuitive journeys through brand catalogs (where chatbots mimic personal sales reps). Ideal examples of intuitive cross-platform tech include Walgreens, which introduced technology allowing users to refill prescriptions automatically using barcode scanners. Additionally, many retailers have also enabled BOPIS options for shoppers who prefer to pick up their items personally. Even tactile experiences typically exclusive to offline shopping, such as looks, texture, sounds, etc. have been made possible via AR/VR experiences. These capabilities have slowly made their way into retail as a means of intertwining in-store and online shopping in memorable ways: either as a one-off experience or as a part of a more prominent virtual backdrop such as the metaverse.

Price: Dynamic Pricing, the Best Way Forward

The backdrop against which retailers must operate has changed monumentally in the 21st century, necessitating modern, powerful, state-of-the-art tech solutions. Entirely new fulfillment and sales pipelines, consumer expectations, dynamic marketplaces, shifting trends, and a multitude of other factors have affected retailers’ approach to pricing strategies across the board. However, today’s retail landscape is shaped and commanded primarily by consumers- all of whom are more price-sensitive and hyper-aware of the market than ever before. The success of any retail venture or offering is dependent on the accuracy with which the retailer can fit into such modern shoppers’ needs. Equipped with a complete artillery of apps and discount-hunting tools, shoppers can only be won with impressive, impactful, and efficient pricing strategies that stand out against competing brands. Thus, real-time, competitive, dynamic pricing is critical to keep up with changes in the market and ensure inventory is pushed for optimal margins. 

On a global scale, the solution is clear: automated price intelligence solutions. Stalwarts and winning brands in retail invest heavily in automated price optimization tools as a guaranteed means to remain competitive without wasting manpower or resources babysitting vast, complex sets of data. With world-class providers such as Intelligence Node, this entails product and inventory tracking, identification of competing items on the market, and automatic adjustments and insights on pricing in real-time: ensuring that modern retail players never lose out on potential shoppers. In one form or another, price optimization is the way forward for retailers seeking to reach a global market.

Looking Ahead - How 2023 Will Shape Retail Technology

Amid the impending recession, supply chain issues, and unpredictable trends, price remains the most critical, make-or-break factor for all, pushing retailers to prioritize their pricing strategies. In times like these, AI automated solutions can make all the difference, allowing retailers to efficiently leverage the massive sets of data at their fingertips as they navigate competition, shifting trends, and modern shoppers all at once. Such brands entering this new era of retail need to be consumer-first, keeping a close eye on their target consumers’ buying behavior, patterns, and preferences as their primary focal point when making key decisions around pricing, strategy, and technology.  

For a deep dive into The State of Retail Technology in 2023, download the report today!