Feature
The Gist
- Seamless integration. Retailers prioritize integrating online and in-store experiences for consistent omnichannel CX.
- In-store media growth. In-store advertising emerges as a key revenue driver, with digital signage and retail media networks gaining traction.
- Tech-driven experiences. Investments in in-store tech like RFID and digital payment solutions enhance CX and streamline operations.
In 2024, both the US and Europe are witnessing a resurgence in brick-and-mortar shopping, with record numbers of shoppers, including younger generations, returning to physical stores. This trend highlights the importance of understanding brick-and-mortar CX trends. Upward of 70% of shoppers visit a brick-and-mortar store weekly, and new survey data also finds that nearly a third of US shoppers who discovered an item in-store purchased it right away.
Where should physical retailers level up to fill in-store CX gaps, meet modern shopper expectations, and grow revenues with smarter investments in 2024?
Related Article: Rethinking Retail: 4 Recommendations for Overcoming Complexity and Scaling for the Future
Brick-and-Mortar CX Trend No. 1: In-Store CX (Finally) Goes ‘Phygital’
Enabling a more seamless CX between different channels: online, in-store, and everywhere in between is the No. 1 priority for retailers
Seamless Integration
While creating great shopping experiences across channels is not new, says Sam Vise, CEO and founder of in-store retail intelligence platform Optimum Retailing, the challenge for retailers today lies in seamlessly integrating them for a consistent experience on any channel.
Omnichannel Competence
The 2024 Omnichannel Leadership Report, which assesses the omnichannel (online, in-store, and mobile) competence of ~700 brands across North America, Europe, and parts of APAC, finds the average overall rating for omnichannel CX at just 43 (on a scale of 0 to 100). This indicates a considerable gap across all capabilities.
Removing Friction
The priority for brick-and-mortar retailers should be to remove friction between online and physical channels to provide a seamless, integrated, and personal customer experience, agrees Vartika Verma, senior director of marketing at mobile messaging platform Gupshup.
Data Collection Across Channels
She suggests data collection and analytics across channels, which gives brands a single view of customers’ interaction across physical and digital touchpoints and creates a virtuous cycle of insights to build a more efficient omnichannel strategy. Similarly, investing in "conversational experiences" that connect offline and online movement aids seamless conversion. WhatsApp is emerging as an effective channel to do both. It helps bridge the digital and physical retail world, widen the reach for store owners and brands, and improve convenience for shoppers.
Digital Leaflets
For example, digital leaflets on WhatsApp provide interactive mini-app-like experiences, live updates, and secure, privacy-compliant purchasing options. Embedded WhatsApp buttons on the retailer's website, or a QR code in-store effectively engage shoppers with concrete buying actions, while helping the brand easily capture first-party data, generate leads, and connect offline to online and vice-versa.
Related Article: 5 CX Trends Businesses Should Know About
Brick-and-Mortar CX Trend No. 2: In-Store Media is Unlocking New Retailer Revenues
In-store advertising is the new driver of brick-and-mortar revenue and in-store CX
Product Discovery
Product discovery is one of the superpowers of physical store shopping experiences. This is exactly why retailers and brands need more attention-grabbing in-store moments. On-premise advertising can drive consumers to those moments of product discovery and impulse buying and generate significant revenue returns. However, activating digital signage inside and adjacent to stores is still an underutilized opportunity, says Leslie Lee, SVP of marketing at programmatic DOOH company Vistar Media.
Tighter Integration
In 2024, we will see tighter integration between marketing programs intended to drive people into stores and the in-store marketing itself. For example, Lee suggests, we will see more high-quality in-store digital signage integrated with QR codes that unlock additional product information or even exclusive online inventory. DOOH is a worthy investment for retailers that can become a significant source of revenue in the long run.
Growth of Retail Media Outlets
Another trend Lee highlights is the continued growth of retail media networks, and the new iteration of this concept being transferred from the online media and ecommerce world into physical stores.
Media Solutions
Retailers want cost-effective, impactful, and high-ROI media solutions that leverage existing store traffic. This helps engage consumers in value-added experiences such as hyper-localized recommendations and promotions, says Anand Muralidaran, senior vice president and chief growth officer at in-store retail media company Cooler Screens.He calls this the "Amazonification" of the brick-and-mortar shopping experience, which is also enabling new revenue streams through in-store ads and increased shopper basket sizes.
Unprecedented Visibility
Such “Intelligent” in-store retail media networks provide brands with unprecedented visibility into customer-product interactions, and valuable shopper intent data and insights within the physical retail environment. Compared to other technologies, retail media networks are poised to provide the highest ROI for retailers, he says.
Related Article: Data, Predictions and Participation: Navigating the Nuances of Next-Gen CX in 2024
Brick-and-Mortar CX Trend No.3: New In-Store Retail Tech Drives Shopper Experiences
In-store payment tech and RFID are moving out of the back end to impact in-store CX directly
Checkout and Payments
Checkout and payments can be a major friction point for customers, especially among younger consumers, says Matt Birchler, UI/UX designer at embedded payments solutions provider NMI.Modern customers expect a digital-first experience, even in-store, and especially with how they prefer to pay, he adds. Yet among the biggest issues with in-store payments is a lack of customers’ preferred payment method and the time taken to check out.
Embedded Payment Solutions
In 2024, the in-store check-out experience is seeing major new investments, with retailers looking to replicate the choice and flexibility of online payments at the physical PoS. Embedded payment solutions solve these problems, and are the critical link between customers’ in-store and online payment experiences.
Emerging Areas of Investment
While credit and debit cards are a given, contactless payments, digital wallets, buy now pay later (BNPL), text-to-pay, self-serve kiosks, biometrics, QR codes and scan-and-go through mobile apps or WhatsApp are fast emerging areas of investment for brick-and-mortar retailers, adds Birchler.
Reducing Cost and Complexity
The rise of cloud-based retail platforms and mobile POS solutions kickstarted this trend, says Rick Berger, president of omnichannel retail platform NewStore, which will continue because these new payment capabilities cut down on the amount of hardware needed to run a store. This reduces cost and complexity for the retailer and also shortens and simplifies the checkout process for the shopper. As stores transition to experience centers vs. inventory showrooms, cutting down on the tech footprint to create room for more engaging brick-and-mortar layouts will be essential, he suggests.
RFID Shopping Enhancement
RFID (Radio-frequency identification) is another in-store retail tech that will see widespread adoption in 2024, says Berger, because we’re near the point where it is becoming cost-effective and scalable. Accessible RFID tech gives brands innovative tools for a more accurate and real-time inventory view and better stock level management to directly enhance the shopping experience.
Product Insights
RFID has evolved from its initial back-office use cases like shrinkage or theft prevention to enhancing product insights through integration with software. This shift toward sophisticated inventory management and product visibility and availability is being embraced by retailers like PacSun, Uniqlo and Zara, says Vise, indicating a broader trend toward data-driven merchandise planning and in-store experience enhancement.
New Use Cases
New use cases for RFID to enhance CX are still emerging, even as retailers explore the role of AI to improve efficiencies in areas like inventory management, merchandising and employee productivity. Other tech such as IoT digital tags (to provide real-time pricing information) and geolocation tech (for precise locations of products and sections of the store) are also areas of growth, adds Katie Moro, global director of managed services at commerce software company Productsup.
Webinar
Sep
25
CMS Briefing: A Live Look at What’s Next in AI-Driven Platforms
Learn how leading organizations are using AI‑driven tools to publish faster, personalize smarter and stay secure.
Register
Webinar
Sep
25
Call Spoofing Trends Financial Institutions Can't Afford to Ignore
Don't let robocalls sabotage your customer relationships. Learn how to secure your voice channel.
Register
Webinar
On demand
Ready or Not: How Data-First Organizations Are Unlocking Agentforce Potential
Learn how to cut through the noise, activate Agentforce and build a Salesforce AI strategy that actually delivers.
Watch Now
Webinar
On demand
CX Reality Check: What Your Customers Are Really Thinking
Register now and get the insights you need to not just meet rising expectations, but exceed them.
Watch Now
Webinar
On demand
Content Leaders Collective: What a Good CCMS Actually Looks Like
Discover how content leaders transform clunky systems into growth engines — and why your competitors are ahead.
Watch Now
Webinar
On demand
From Hype to High-Impact CX Strategies That Actually Scale
Turn buzzworthy AI and outsourcing trends into measurable CX wins with fresh 2025 data.
Watch Now
Related Article: Top Customer Experience Trends You Should Watch in 2023
Setting up for Retail Success in 2024
Brands should look to automate wherever possible this year and translate efficiency gains into better shopper experiences, says Mike Welsh, chief creative officer at immersive digital experiences company Hexaware Mobiquity. It begins with replacing outdated technology such as multiple POS and order management systems, filling gaps in real-time inventory tracking, prioritizing any initiative that enables ownership of customer data, and exploring new sources of revenue and audience monetization.
Seamless Omnichannel Experiences
2024 is not about online, in-store, or mobile experiences, but about seamless omnichannel shopper experiences. At the core, says Moro, retailers should seek solutions that streamline the exchange of information between all physical and online touchpoints, setting up the foundation for more advanced systems such as product-to-consumer (P2C) management, she adds.
Leveraging in-Store Power
Equally important is finding ways to leverage the power of in-store to drive product discovery, sales and CX. Identifying where current gaps lie with in-store CX, in line with emerging brick-and-mortar CX trends, will help prioritize investments, which in turn, will drive sustained revenues.
