Seven predictions for retail in 2012

By Mark Hales, digital consultant, Experian Marketing Services

As a digital consultant, you’d have probably  expected me to  order all  my Christmas presents online, but being a man I of course left everything to the last minute. This led to some anxious moments waiting for the postman, followed by a Christmas Eve dash to the high street. But despite the minor panic, it got me thinking about how the high street and online can work together, and so here are my seven predications for 2012:

1. More choice in how you receive goods online
For those retailers with both physical stores and an on line presence, 2012 will see a rise in the number offering a click and collect service, similar to those successfully launched by the likes of John Lewis and Sainsbury’s last year.

As well as providing customers with a convenient way of collecting their purchases, it gives the retailer valuable insight into how their digital channels are supporting their physical stores. Not to mention, it’s another great way of collecting email and mobile data from customers.

The big difference this year will be pure-play online retailers allowing you to collect goods at non-competitor stores or through companies like Collect Plus, which deliver to your local supermarket.

2. Consumers will be encouraged to give more data in store
My second prediction is the other side of the same coin. In order to understand the impact that physical stores have on websites, retailers will start trying to collect more data in store. This could be a simple survey or, more likely, incentivised by a competition, the use of promotional codes or QR codes in store. The data shared can then be linked to any subsequent online order giving retailers a more joined up understanding of their customers’ behaviour, both on and offline.

3. Loyalty will be more important than ever
We’re also going to see an increase in reward and loyalty schemes throughout 2012.  Despite often being expensive and difficult to set up, they are of big appeal to customers in these times of austerity and again provide retailers with a view on how their customers are engaging with them across multiple channels.

4. Consumers will be able to order online whilst in store
With smartphone penetration still on the rise, and a steady increase in the popularity of tablets such as the iPad, ordering from a mobile device has never been easier or more convenient. The smart multi-channel retailers recognise this, and as a result you will see them provide Wi-Fi for customers to use whilst in-store. Others will install kiosks enabling customers to purchase online as well as view more detailed information on products and even customer reviews.

5. QR codes will finally start to make an impact
QR codes have been around for a while now but more and more consumers now understand what they are and how to use them. As mentioned before, smartphone penetration is increasing meaning that there are more devices out there with the ability to read QR codes. Both of these factors will push retailers to use them more than we saw in 2011.  

A key benefit is that QR codes give a retailer much more data on how and where their customers are engaging with them. When used in store, they can help retailers further understand the link between online and offline. We could even see more virtual stores from pure-play online retailers, using QR codes rather than physical products!

6. Facebook will provide even more opportunity to engage consumers
In 2011 Facebook launched ‘Featured Stories’, an advertising format whereby users are encouraged to ‘like’ a brand through a link stating that one of their friends has already done so. The launch of custom verbs at last year’s F8 opens up even more potential, as featured adverts no longer need to be focussed just on ‘liking’, but can also include any number of verbs that make the interaction more relevant to the product itself, such as ‘wearing’, ‘reading’ or ‘listening’.

Similarly, the Open Graph feature will give consumers the opportunity to share specific actions about the products they are engaging with at that particular point in time. Brands can then use those customer endorsements to drive organic traffic towards their sites and apps. The travel sector, for example could be a key beneficiary as users can share updates on all stages of the holiday process; from researching options, creating a short list and making a choice, to booking the tickets, taking the trip and sharing highlights of their experience. Companies can then tailor their advertising to the different stages of the consumer journey.

Open Graph has been adopted with great success by the likes of The Guardian and Spotify thus far, but we predict a greater uptake by retailers in 2012. The key winners will be those that thrive on simple, personal interactions that can be delivered in a timely manner.

7. Online video content becomes more crucial for brands
Video is one of the fastest growing media online and data from Experian Hitwise has shown that visits to online video sites grow by 36% in the last year. There are 785 million visits to online video websites every month and, if the growth trajectory continues throughout 2012, then we expect to see a new milestone of 1 billion visits to video sites every month.

With customers consuming more and more video, brands should increasingly be looking to use video as a core part of their digital strategy. Video can play a crucial role in customer retention and acquisition by driving website traffic, boosting brand awareness, demonstrating products and services or acting as a customer service channel. Importantly, online video can also be cost effective, so we expect to see 2012 as a year that brands really capitalise on video.