Exploring Retail’s Tech Transformation: Key Insights from Diffusion’s 2024 Report

This year, Diffusion took a closer look at retail technology, analyzing how retail brands are adapting to changing consumer preferences.

Already, DTC natives like Skims and Alo have invested in physical store fronts to capitalize on shifting consumer needs. As companies roll out new locations to foster deeper, more holistic relationships with customers, technology plays a critical role in bridging the gap between e-commerce and in-person shopping. Our report provides a deep dive into the intersection of retail and technology, exploring how brands can leverage tech to elevate in-store experiences and navigate the evolving priorities of shoppers.

The Easier – and Quicker – the Better

In-person shopping is a great way for brands to immerse the consumer in their values, but long lines and other inefficiencies plague the in-store experience and cause many to opt for online shopping instead. In the era of increasing consumer convenience, it’s no wonder in-person patrons value technology such as self-checkout (51.2%) and mobile payment options (33.7%) which allow for easy and efficient shopping. These in-store retail technologies not only provide simplicity but also empower shoppers, giving them more control over their experience. This increased autonomy can lead to higher customer satisfaction and larger receipts, making these technologies a crucial part of the in-person retail landscape.

In areas for improvement 81% of shoppers believe technology such as digital price tags and in-store navigation apps would enhance their experience. Our data suggests that leaning into maximizing the easy, quick shopping experiences to connect the customer are key to building loyalty in an increasingly competitive retail landscape.

Exclusive Access and Personal Discounts Drive In-Store Sales

There’s something exciting about a brand offering an experience or deal just for you. Whether it’s your birthday or a discount on a product you’ve looked at online pushed to your phone when you arrive in the store, we found personalized shopping remains a top priority for more than one in two (56%) consumers.

Similarly, exclusive access to products moves consumers to shop significantly more; 19% of consumers would be more likely to visit a physical stores as a result. Notably, 49% of men ranked personalized discounts as a top influence for in-store purchases, demonstrating that tailored offers resonate across demographics. Seems like everyone loves a deal, especially when it is customized to you!

Looking Forward

The reality is that in-person shopping has forever changed. If retail brands want to drive customers to physical storefronts, and for it to complement their e-commerce and not cannibalize it, technology that can work across all channels is crucial. Embracing personalization and meeting consumers’ desires for tech-enhanced, in-person shopping has never been more key to creating memorable, meaningful interactions that bolster brand and customer loyalty.

To learn more about how retail is evolving and what these insights mean for your brand, request the full 2024 Retail Technology Report click here to request your copy.