The last few years have seen an unprecedented amount of change in the retail sector. Some of the changes were part of ongoing pandemic-driven trends, specifically the rise in e-commerce, online shopping, or eTail. But other changes were unforeseen, including the threats of inflation, energy price rises, supply chain issues, and the cost of living squeeze.

Together these trends have created new challenges for retailers. Consumers expect a “new normal” of online-offline mixed shopping experiences, while also looking to save money at almost every turn. Retailers need to adapt. Those who act fast can avoid the costs of their legacy systems and take advantage of the opportunities for growth that the new increased online retail environment presents.

These short- and long-term trends mean retailers need to enhance their customer engagement and experience tools. Let’s look at how these trends are unfolding and how Experience Communications as a Service (XCaaS) and Contact Center as a Service (CCaaS) can help retailers meet these challenges head-on.

A new mixed retail environment

For several years the ongoing trend has been the rise in e-commerce. This was greatly accelerated by the dramatic shift in our work and home lives since 2020. The sector is only expected to grow, and worldwide e-commerce is set to reach an estimated $8.1 trillion by 2026.

The dramatic rise of e-commerce has brought about a new retail sales environment made up of a mixture of online and offline sales and shopping. For instance, 54% of consumers now say they’ll first look for their products online then buy them in-store. At the same time, retail and consumer packaged goods companies say they have near parity of revenue for their online and offline stores, with 19% and 18% respectively.

Where these two spheres were once separate, they’ve now merged, and consumers’ expectations and behaviors have changed with them. According to Shopify’s Future of Retail report, 50% of adult shoppers utilize a buy online pick up in-store (BOPIS) option, and 67% buy additional items if pick up is immediately available. What’s more, it’s predicted that by 2025, 25% of retail employees will double as contact center agents to accommodate these new customer expectations.

Connecting offline and online retail

This new space requires new ways of engaging customers, using dynamic technologies that will allow retailers to continue to adapt as the situation unfolds. 8x8’s eXperience Communications PlatformTM and Contact Center solutions allow retailers to connect with their customers on- and offline. For example, retailers can integrate their communications platform with their CRM tools, and APIs allow integrations with EPOS systems. Implementing strategic ecommerce integration helps in enhancing these mixed shopping experiences, enabling a seamless flow between online and offline sales channels. This can help retailers build a frictionless customer experience where they can shift effortlessly between in-store and online. For example, purchase history, returns history, and other behavior can all be readily available once the correct APIs have been used alongside CCaaS.

The overall consumer journey can be streamlined too. Thanks to unified communications, agents can quickly connect with the right subject matter expert within a team to speed customer resolution. This increases the overall efficiency of the process, saving retailers time while creating the frictionless experience that consumers now expect. With the integration of QR code generator technology, retailers can enhance their customer engagement strategies and adapt to the evolving demands of the market.

What’s more, 8x8’s CCaaS solution lets retail contact center agents speak with customers in preferred channels, which are increasingly becoming social channels. This presents retailers who adopt XCaaS or CCaaS with an opportunity and advantage, as social commerce is expected to triple globally by 2025, while in the US it’s already at an estimated $36.6 billion.

Creating consumer confidence

Staying on top of the long-term e-commerce trend is key to adapting, but retailers are also faced with a short-term existential risk: the cost-of-living crisis. This impacts retailers and their customers simultaneously. Consumer confidence has plummeted to -49, its lowest rate on record. And at the same time, 60% of adults are already reporting they’re spending less on non-essential items.

Faced with the squeeze on their finances, consumers are already shopping around. The financial pressure is corroding brand loyalty, as 85% of consumers say they are looking for cheaper alternatives for familiar brands, which rises to 92% for low-income households. Retailers cannot rely on their existing customer experiences, and need to offer consumers additional reasons to spend their limited resources.

Winning during consumer spending cutbacks

By creating more frictionless engagements, retailers can bolster their brand and buck the cheaper alternatives trend. By using CCaaS and innovative features such as Conversation IQ, retailers can take advantage of customer analytics and tailor interactions to suit customers preferences and needs.

Conversation IQ insights and other sentiment analysis tools help retailers better understand their customers’ intentions and mood. During a time of economic uncertainty, this gives retailers the chance to be more sympathetic and understanding, creating positive experiences for customers and helping to sustain brand loyalty. Where custom products may be more expensive, the overall customer experience is a factor that may encourage them to stay.

Lastly, for both the short-term financial squeeze and long-term online-offline retail habits, retailers will need to make well-informed, data-driven decisions. Many retailers are already aware of this need, and as Shopify reported, 47% say unifying online and in-store data will prove to be one of the biggest challenges they face. To overcome these challenges, using the best Shopify apps can help retailers streamline operations, integrate data, and optimize both their online and offline presence efficiently. Tools such as 8x8’s speech and customer experience analytics will help forward-looking retailers meet this challenge. The information can be combined with other data points, including purchases, preferred communication channels, and in-store and online behavior. This, as well as unified communications between contact center agents and organizational SMEs, will help remove on- and offline silos, which 49% of retailers say is one of their top challenges.

Where does this leave retailers?

The short answer: with an opportunity. The new space of online-offline mixed shopping opens new vistas of possibility, and those retailers who take advantage of them will be able to build lasting customer relationships that will hopefully endure the current cost-of-living squeeze.

Get better customer experiences and build brand loyalty. Explore 8x8 retail solutions.