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For retailers, the integration of digital and physical shopping means they’re connecting with shoppers in more ways than ever before. The good news is that this gives retailers more chances to prove they recognize, understand, and value shoppers. The bad news? Retailers have a short window to impress them before they walk away.

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• To keep up, retailers are racing to find new ways to compete. They see opportunities in customer service, ecommerce, and personalization. The challenge? Achieving their goals requires a heavier reliance on data, insights, and technology — and the retailers that don’t keep up risk getting left behind.
• After the digital surge in the heart of the pandemic, people are now shopping online and in stores at nearly the same rate. While shoppers split their purchases nearly evenly between stores and online in 2023, in two years, shoppers expect they’ll complete only 44% of transactions in the store.
• With frontline workers in the store responsible for a growing number of tasks, nearly one-quarter of retailers say that improving associate productivity is a top opportunity. For retailers, equipping associates with mobile devices to engage shoppers, complete operations tasks, and conduct transactions has become a priority. Today, an estimated 32% of store associates use a mobile device for their job, a share expected to grow to 41% in three years.
• Retailers say the ability to personalize customer communications is a top priority. It’s easy to see why: Nearly three quarters of customers expect companies to understand their unique needs and expectations.* To break through the noise — where one-size-fits-all communications aren’t enough to attract attention — 93% of retailers say they are investing in personalization more than ever before.
• Great customer service is a hallmark of shoppers’ favorite brands and a top reason why they prefer shopping at a given retailer. Nothing sours shoppers on a retailer like bad service: 53% of shoppers say poor customer service is the worst retail experience of all. Even more alarming: Another 74% say they’ll abandon a brand after three (or fewer) bad experiences.

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