Although the crystal ball may be a bit fuzzy, we can utilize consumer behavior as our tea leaves to glean a glimpse into the future as we round out the biggest shopping season of the year. 

From personalization to value-driven purchasing to virtual reality shopping experiences, new technologies and an increased interest in where and how our products are sourced seem to be driving a major change in how consumers are buying. So let’s get out our tarot cards and divine a look into the biggest trends that will be driving growth in the coming year.

1. Omnichannel customer experiences

Nowadays, it can be nearly impossible to predict where or how your shoppers will stumble on your product. Think about how you would research and discover brands; maybe you saw an ad on Instagram, came across a listing on Amazon, asked your friends for recommendations, or simply searched what you were looking for on Google and clicked the first option that came up. Maybe you even just walked right into a store and browsed the shelves until you found what you were looking for (how very retro of you!).

Whatever the case may be, there are dozens and dozens of channels that a customer may discover you on, both digitally and in-person. In order to keep up in 2023 and beyond, organizations are going to need a way to create consistent, compelling product experiences across each of these touchpoints that exist, and those that are coming down the road. Even just one bad experience on one of these channels of not being able to find the information they’re looking for (or worse, finding the wrong information) can spell lost sales and unsatisfied customers.

Let’s take a look at a brand that’s managed to create strong product experiences across a number of channels – Fossil. A popular watch designer and manufacturer, Fossil has managed to replicate and personalize the shopping experience across all channels, whether it’s owned by them or not.

Starting with their own eCommerce site, Fossil provides in-depth tech specs, photos, videos, accurate sizing, user reviews, and shipping and stock information to ensure that a customer has all the information they need to make a purchase decision, even if this is the only point of interaction in their entire buying journey.

They even offer the opportunity for their buyers to utilize a virtual shopping assistant – interested customers can book a meeting with a Fossil sales associate from the comfort of their own home and receive all the guidance and advice they need to make an informed decision. This type of virtual shopping behavior and advancements in technology are going to have a huge impact on shopping behaviors, but more on this later.

Outside of their own eCommerce website, Fossil does a fantastic job of keeping their shopper’s experience consistent and compelling on other channels as well. Let’s take a look at both Instagram and Amazon – again, it’s important to provide all the accurate, up-to-date product information and visuals that a customer may need to make a purchase decision, but their experiences on both of these digital touchpoints will be quite different.

On Instagram, there is obviously a heavy focus on imagery and videos. Fossil makes it easy for their potential customers to research, view, compare, and purchase their products without ever having to leave the social media site. 

We’d be remiss not to take a look at Fossil’s presence on internet retailer behemoth, Amazon. With hundreds of thousands of sellers listing millions of products, it can be easy to get lost in the crowd; how do you stand out? By providing the right information, in the right way, at the right place. Fossil has managed to create compelling visuals that catch the eye and provides important product information that allows shoppers to compare products and ensure they’re making the right choice before clicking ‘Buy Now’.

Whether a shopper stumbles upon a Fossil product on Instagram or Amazon, or goes directly to their eCommerce site, Fossil has ensured that they’re providing consistent and compelling product experiences across each of these channels, and more. With two-thirds of shoppers saying that just one bad product experience can lead to an abandoned purchase, Fossil’s omnichannel product activation strategy means that they’re providing strong customer experiences across the touchpoints of today and tomorrow, setting themselves up for success in 2023 and beyond.

2. Hyperpersonalization

With advancements in technology and deeper insights into customer shopping behavior, brands and retailers are now able to offer highly personalized product recommendations and experiences to their customers. This can help to build loyalty and drive sales, as customers are more likely to make a purchase when they feel that an organization understands their needs and preferences. With 71% of consumers expecting companies to deliver personalized interactions, it’s no longer a luxury to offer this type of customized shopping experience but a need in order to stay competitive in the coming years.

Let’s take a look at Stitch Fix, an online personal styling service that’s boomed in popularity over the past few years, with over $1 billion in sales and over 3.4 million users, as of 2020. Stitch Fix relies on Artificial Intelligence (AI) and customer data to improve the shopping experience by providing completely personalized items and clothing and shops. They ask their shoppers to take a short style quiz, wherein they gather data about sizes, price range, and personal taste, and based off of their answers, Stitch Fix provides expertly-picked clothing packs and sets up a personalized store for shoppers to continue perusing.

By leveraging the technological advancement of AI to pick clothing items for their customers, Stitch Fix ensures that each and every customer is receiving personalized care and attention even through a computer screen. Plus, this level of care and attention leads to reduced returns and exchanges, and more satisfied, loyal customers.

3. Value-Driven Purchasing

With more information at our fingertips than ever before, consumers, particularly Gen-Z consumers, are starting to base more of their decisions on how much their personal values align with a brand’s values. From social unrest to sustainability, what your company cares about matters, and incorporating your brand values into your messaging is a crucial way to connect with customers and build loyalty.

Take, for example, Belco Coffee, an independent family business that sources, imports, and distributes environmentally friendly and responsibly-sourced coffee from around the globe. Belco does a fantastic job of explaining their company’s mission, which is to provide authentic, innovative, and sustainable coffee, and to create long-lasting relationships with independent roasters.

Beyond that, Belco Coffee doesn’t just inform their customers about their commitment to sustainability, but actually provides context and important information on how they’re ethically-sourcing their products. This establishes a deeper connection with their customer base, providing an in-depth look into their processes and practices so that their consumers feel comfortable and confident that the products they’re purchasing align with their personal values.

Consumers are becoming more aware of the environmental impact of their purchases, and many are looking for products that are made from sustainable materials and produced in a way that is environmentally friendly. Communicating your commitment to sustainability is not only good for the future and the environment (after all, there is no global economy if there is no globe), but brands and retailers who are able to effectively communicate what they’re passionate about are likely to see a boost in sales as more and more consumers prioritize sustainability when making their purchasing decisions.

4. Experiential shopping experiences

As we touched on earlier, the use of AI and other advanced technologies is becoming increasingly common in the retail industry, and is only expected to grow in 2023 and beyond. From augmented and virtual reality to voice search and personal assistants to cashless or contactless payment and delivery options, the blending of technology and retail can help retailers better understand their customers and provide more personalized shopping experiences, as well as streamline operational processes and costs.

A great example of this is Swedish home goods manufacturer and retailer, IKEA. Released back in 2017 and still thriving today, the IKEA Place App allows users to utilize Augmented Reality (AR) to virtually place furniture items in their own home and get an idea of how the product will fit and work in the space. You can share or save pictures, price and reserve items you like, and purchase the item to either be shipped directly to you or picked up at the nearest IKEA location.

Obviously, this provides a number of benefits to consumers; with a much better idea of the size, shape, and color of the item, customers are able to purchase with more confidence than ever before, resulting in reduced returns and satisfied, loyal customers. As technologies like AR, VR, and AI continue to evolve and improve, organizations that incorporate these innovations are able to provide stronger customer experiences and empower their consumers to keep coming back to see what’s next.

5. Social commerce

The rise of social media and other online platforms is changing the way that retailers interact with their customers. According to a study conducted by Forbes, 75% of retailers are now selling on social media, and 43% of retailers who sell on social platforms say that half or more of their profit comes from social media sales.  

 With such staggering numbers, we can expect to see more and more retailers using social media not only to advertise their products, but also to build relationships with their customers and provide them with valuable information and resources in 2023. In turn, this can help drive sales, not only because it’s an additional sales channel, but also because customers are more likely to make a purchase when they feel connected to a brand.

Social media provides a unique, personal way to directly interact with customers and share genuine user-generated content. For our last example, let’s take a look at Brazilian flip-flop brand, Havaiana’s. With a thoughtfully curated and designed Instagram feed strategic partnerships with prominent influencers, Havaiana’s has been able to craft a very strong social media presence that effectively communicates the essence of their brand. Plus, they regularly interact with followers and fans of their account by replying or reacting to comments, which encourages even more engagement. 

Havaiana’s doesn’t just stop at Instagram – if we hop on over to Tik Tok, we can see that the sandal company has done a fantastic job of curating a strong community of engaged users on the video-sharing platform. They’ve crafted content specifically for the channel, instead of just repurposing their existing content on Instagram, ensuring that their followers get a unique, but compelling, experience on every social media channel. This has garnered them many viral videos, including a series that’s accrued over 17 million views. By embracing new technologies and adapting to new social commerce platforms, Havaiana’s has been able to reach new audiences and establish stronger, more loyal relationships with their customers.

To 2023 and Beyond

Despite what many economists and analysts would want you to believe, nobody can predict the future. What we can do is take a look at consumer behavior and analyze the strategies that companies are using to successfully navigate such uncertain times. Technological advancements and economic unrest mean that the retail landscape is changing at a break-neck speed, and organizations who are able to adapt and optimize their presence on new channels and markets are the ones who will be around for the long haul.

Interested in future-proofing your organization through 2023, and beyond? Reach out to an Akeneo expert today to see how we can set you up for success.

What is ERP?

ERP Systems and Product Experience Management (PXM)

ERP and PIM Integration Best Practices

What is a Digital Product Catalog?

• Make purchases directly through the website
• Search for what they want
• Compare items based on features and price point
• Filter items by desired attributes
• Watch videos or see 3D models

• Easily create custom and shared catalogs 
• Update product information
• Track and manage your sales
• Optimize for mobile and other new channels

How a Digital Product Catalog Can Benefit Your Business

• Increasing agility. Print catalogs can take six months to a year to update. That dramatically affects your product release schedule and your time-to-market. If you operate in print or even in a basic digital catalog, you may wait to release new products. When you create a modern digital catalog, you can release your products whenever they’re ready—helping you stay agile and keep up with the competition. 
• Streamlining operations. Digital catalog software ensures your engineering, product, sales, and marketing teams are all working with the same information, and the benefits are immeasurable. You’ll make fewer mistakes. You’ll communicate better. And you’ll always know the status of your products. 
• Offloading inventory. Because print catalogs are time-consuming, many businesses only create one or two versions. With digital product catalog software, you can easily create as many versions or layouts as you want. The best idea? Create a catalog for old and surplus inventory you want to offload. Customers get a deal, and you get to focus on the future. 

Digital Catalog Creation: The Basics

From online retailers like Amazon and Etsy lowering the barrier to entry for entrepreneurs to sell products, to social media platforms like Instagram and Tik Tok entering the retail space, the eCommerce landscape has just exploded over the past few years and advancements in technology, increased competition, and the growth of available channels have made it easier than ever to buy and sell online.

eCommerce: Steadily growing, and showing no signs of stopping

As businesses came online during the COVID-19 pandemic, the global trend toward digitization surged ahead. Even with the recent rise in inflation, as regions began to reopen and consumers could shop in-person, eCommerce growth continues to climb. Merchants continue to follow consumer demand online, and this growth means more brands competing for customers.

Due to this increase in competition, the digital advertising dollar is not going as far as it used to. A recent study by Adobe saw that the rising cost of digital advertising was moving five times faster than inflation in the United States.

As the barrier to entry thins and the digital space becomes more crowded, brand identity and brand awareness will only become more crucial to draw more organic acquisition and retain more customers.

Not only are new competitors emerging, but new channel opportunities are as well. Brands and retailers need to be where their consumers are online to be top of mind, make an impact, and capture the sale. The typical social media user now spends about 15% of their waking life using social platforms; people around the globe are spending even more time scrolling through social feeds which leads to spending their money online.

Implementing an omnichannel product activation strategy is essential, and successful brands are the ones that are meeting customers where they already spend their time. The omnichannel opportunity is all about giving consumers choice and options around where, what, and how they engage with retailers and their products to make a purchase.

Utilizing the Product Ecosystem to Support Commerce Trends

Staying on top of commerce trends is not an option — it’s a necessity. For commerce business owners, keeping up-to-date on industry trends is particularly important to stay competitive and identify new opportunities. Partnering insight into commerce trends with a comprehensive, scalable, and well-functioning commerce ecosystem is the key to staying competitive and supporting your commerce business.

You’ve heard all of the ecosystem acronyms – ERP, PIM, MDM, and PLM, just to name a few, but why are they important? Whether you are B2C, B2B, a distributor or retailer, the end goal is the same – get your products to your consumers.

Most commerce brands have similar ecosystem components. However, the type, number, and scale of the tools or software they use for their online businesses will differ.

Identifying your desired business outcomes, key processes you want to improve, and what metrics you’ll use to measure impact will help guide your decisions on what systems within your commerce ecosystem will be most beneficial to your business.

Your commerce ecosystem can help you with marketing, sales, customer relations, inventory management, and product data and enrichment. Strong product data and the right commerce ecosystem can massively improve the customer experience, improve your time-to-market, and increase sales conversion.

That’s why the team here at Akeneo will spend the next few weeks diving into all the different areas of the product ecosystem, detailing what they are, how they interact with each other, and how to best utilize each piece of technology to create the most compelling omnichannel experiences. From the basics to the best practices, we’ll be providing you with everything you need to better understand the product ecosystem and how to build a scalable technology stack that supports the future of eCommerce.

Product experience is critical to customer experience and business success. 

Product experience requires the right technology but won’t be achieved without the processes and strategies to align tech to outcomes. 

PXM champions have invested in their PXM capabilities and are reaping the rewards.

1. The customer and expert peer panels

2. Akeneo Product Cloud & Product Updates

3. Meet & network with people

4. Fun!

Teamwork Assistant

Proposals and Approvals

Making Work Flow

1. The first step is managing all the information about a product. Not just the title, description, size, color, and so on, but also all the dynamic data that buyers are looking for, such as reviews, sourcing, pricing, availability, and so on.
2. You then need to connect all the data that is managed with different tools by different people, so that a single product record can be orchestrated as necessary.
3. The next step is activating that product record into all your different channels you need to be on, adhering to the personalized requirements of each channel, whether it’s owned by you or not.
4. Lastly, you need to know how that product record is performing across all your channels, with insights that guide you to the best ways to optimize that product record to help you achieve your growth goals or eliminate poor product experiences that increase returns and negative reviews.

Product Data Studios

Product Data Platform

App Store

Performance Analytics and Insights

And what about PXM?

Fall also heralds the start of holiday gift-giving. And that means shopping in stores, on our favorite eCommerce sites, and on marketplaces. Perhaps we even get gift inspirations from imagery and posts we see on social media.

– Product Data Studios, that serve each of the core product record components starting with a modern PIM that natively provides product asset management and syndication capabilities, as the keystone to managing and optimizing the entire product record. Additional Studios will provide support for more dynamic product information elements such as product availability management, pricing optimization, user generated content, and product lifecycle management;

– A scalable Product Data Platform (PDP), to centralize and orchestrate the entire product record consumed from each of the Product Data Studios, with performance analytics to inform business strategies;

– And a native App Store, that makes it easy to activate product data across any commerce channel or business application, in addition to providing solutions for seamlessly augmenting the core product information created in the Product Data Studios and orchestrated in the PDP.

Read the full press release here, and you can learn more about Akeneo Product Cloud here.