5 Retail Trends From NRF 2024 — Insights and Key Data

NRF 2024 is retail’s biggest show and an event that should be on every retail leader’s calendar. However, if you missed out on NRF 2024, you’ll still be able to access some of the most valuable insights from this year’s conference.

For the second year in a row, MJV Innovation, a leading global consultancy on customer experience, design thinking, and data analytics, sponsored NRF. More importantly, the team created a detailed report recapping the insights gleaned from the world’s largest retail conference. Here’s a glimpse into their NRF 2024: Retail’s Big Show report.

Customer Loyalty Is More Important Than Ever

Everyone understands the value of customer loyalty, which is why retailers are constantly clamoring to boost retention and reduce churn. Several NRF 2024 speakers presented intriguing data on customer loyalty, the impact of returns, and the value of offering secondary services like point-of-sale financing.

For instance, when a customer returns a product to the store, they are 70% more likely to spend the entire refund and up to 20% more than the original purchase price. Another topic of interest at NRF 2024 was the use of loyalty programs and cashback to increase conversions. For example, Amazon offered a 5% cashback card with no annual fees, but it was only available to Amazon Prime subscribers. 

Are you looking for more ways to bolster loyalty? If so, make sure to download the full report. 

Phygital Is the New Standard

Phygital is the convergence of physical and digital sales channels. Instead of treating these mediums as separate elements, phygital strategies view them for what they are: cohesive components of the customer journey. The trick is to offer a diverse phygital experience that seamlessly merges digital components with physical ones.

You can’t focus on just one or two phygital offerings, as consumers are extremely divided on what sort of digital interactivity they would like to see during brick-and-mortar shopping. For instance, 15% of shoppers like using a brand’s mobile app even while in-store, 12% favor scan-and-go devices to avoid checkout lines, and 16% of consumers consider self-service kiosks to be their favorite checkout method. 

Therefore, you’ll need to integrate multiple digital channels into your physical shopping experiences. Start with a good mobile app that offers product scanning and search capabilities. Build out from there and explore other ways to immerse in-store shoppers in the purchasing experience. 

Going Omni Channel Presents Omni Challenges

Most retailers have gone multi-channel, which means that they are active on both digital and physical fronts. However, just 11% have developed a sophisticated omnichannel strategy. What’s the difference? Multi-channel simply means you give consumers more than one way to interact with your brand. 

Omnichannel merges multiple channels into a cohesive experience. Going omnichannel instills better fluidity in the customer journey and reduces points of friction, thereby increasing conversion rates and sales volume. 

Taking your sales strategy omnichannel requires you to update experiences that have become outdated. You might, for instance, need to modernize points of sale to provide the speed of service and convenience that customers enjoy during online shopping. Going omnichannel is all about blending digital and physical experiences. 

Personalization Is Going Mainstream

You might be thinking, “Haven’t retailers been investing in personalization for years now?” The answer is yes. However, personalization in retail is about to take its next big leap forward, thanks largely to the proliferation of artificial intelligence. AI and machine learning technologies are making hyper-personalization a reality.

Hyper-personalization involves personalizing nearly every facet of a customer’s journey with your brand, from the emails they receive to the content you target them with online. However, personalization requires more than just AI and ML technologies. You’ll also need the right data. According to Rob Garf, the VP and GM of Retail Salesforce, “When you combine data and AI, magic happens.” 

Taking your personalization capabilities to the next level can be a game-changer for your business. According to data shared during NRF 2024, 80% of consumers are more likely to make a purchase when brands invest in personalization. 

AI: Retailers’ Newest Superpower

Artificial intelligence and its propensity to revolutionize retail has everyone clamoring to adopt this emerging tech. However, several NRF speakers cautioned retailers about the dangers of jumping headlong into AI without a cohesive strategy. 

Jill Klein, the head of emerging technology and IoT at CDW, said, “Everyone is jumping into the artificial intelligence pool. There are those who swim, and there are those who are going to drown. So everyone better take some swimming lessons.” Her statements speak to the fickle nature of AI. 

Artificial intelligence isn’t intrinsically smart. Instead, its efficacy depends entirely on the quality of data you feed it. The “garbage in, garbage out” concept applies. If you are going to invest in AI, and you should, it’s vital that you do your due diligence and ensure that the data is of adequate quality.

Making Sense of These Trends

As you can see, retailers are being pulled in numerous directions. The question is, what improvements should you pursue first?

It’s best to focus on what delivers the highest value for your organization and then build on that momentum. Turn small wins into big ones and use these insights to drive your business forward in 2024.