Over the past few years, customer behavior has changed significantly. This change is primarily due to the problems associated with the COVID-19 pandemic. People have had to change how they buy goods and services fundamentally. Most of these changes are powered by technology and will likely remain long after the pandemic. Below are some major changes in customer behavior and accompanying technological transformation.
Increase in Online Shopping and Home Delivery
The need to protect life has forced many to stay in their homes. These measures have generally increased clients' demand for online shipping and home delivery options. In particular, the global food delivery market has risen to about $130 billion. Revenue is also expected to increase to over $70 billion by 2025. As a result, many retailers were forced to expand their online and delivery options to stay relevant. This shift involved using artificial intelligence (AI) for payment and delivery.
AI-based technologies are used to forecast customer behavior. It allows retailers to predict when clients are most likely to purchase items. In turn, a business can prepare the goods for quick dispatch.
Reduced Purchase
The economic hardship experienced in the last few years has significantly reduced clients' purchasing power. This change has reduced the income of wholesalers and retailers at all levels. Therefore, newer and more attractive e-commerce options have sprung up. These changes were powered by technologies such as extended reality (XR) and AI. The results are better access to:
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Online services;
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Delivery;
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Self-service;
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Other personalized services.
As the world economy pushes towards recovery, these new systems are expected to improve purchases.
Household Goods Demand
Locking down people means they will stay longer hours at home. Hence, they will consume a lot of goods and services while indoors. The demand for several household goods has increased significantly due to quarantine requirements. In addition, competition among retailers to provide the best value at an acceptable rate is on the rise. Many retailers now use video and XR to encourage customers to purchase their goods. These technologies in retail will likely increase as the need for household items is expected to increase.
Increase Purchase of Wellbeing Products
The need to stay healthy has pushed many buyers to take care of themselves and their families. Consequently, more people actively buy supplements and natural and healthy foods to improve immunity. On the other hand, retailers have picked up on the trend by actively advertising these products on social media and similar technologies. This demand will likely increase as people become more conscious about their health.
Conclusion
There have been several customer behavior changes and technological transformations in retail. These changes have occurred due to regulations caused by COVID-19. These changes have increased how clients shop online and access products via home delivery. In addition, these problems have reduced the purchasing power of customers. Likewise, it has altered the type of household goods in demand. Yet, the purchase of well-being products has increased significantly. Most of these changes can be addressed through technological transformations such as AI, XR, and the effective use of video.