Future of Retail & eCommerce
How AI and modern customer experience strategies can help retailers transform
Retailers can overcome some of the challenges they face — such as customer retention — with innovations that enhance engagement and improve the overall customer experience.
Joe Walsh — Chief Commercial Officer Ireland at global outsourcer Capita — is passionate about retail. He’s equally passionate about helping retailers succeed in a competitive marketplace, with an approach that blends people, service and technology.
Positive customer experience and personal interaction
Walsh notes that one of the biggest issues is customer drop-out rates on retail websites. This occurs when shoppers can’t find what they’re looking for immediately — or have what they perceive as a negative online customer experience. That’s why proactive and personalised communications are so important via, for example, pre-sales product videos and video call support facilities. In short, great customer engagement can be a deal-breaker.
“The customer journey is increasingly moving online, particularly for Gen Alphas and Gen Zs,” he says. “They want a personalised experience. They want a conversation.” A full 60% of consumers prefer video support for complex issues, indicating that video interactions can significantly enhance the customer experience and lead to increased retention rates.
How AI can transform the retail landscape
Another challenge for retailers is managing high volumes of contact during peak seasons. ‘Pinch point’ issues include staff availability, store and website capacity and maintaining good customer experiences. Walsh highlights that Capita can help by providing extra resources during these busy periods and by ensuring that a retailer’s online channel is engineered correctly to deal with an activity surge. “Website responsiveness is crucial,” says Walsh. “Because the attention span of consumers can be measured in seconds.”
Walsh sees a sharp increase in AI adoption among retailers to, for example, manage high volumes, capture and analyse customer data to gain valuable insights for improvement and generally ensure smooth customer experiences. So, he advises retailers to set up innovation areas where any type of new tech can be tried and tested. “Don’t be afraid for it to fail,” he says. “If it works, deploy it quickly. Essentially, find out what the future of retail looks like for you — and then invest in it.”
Growing demand for data experts in retail to enhance consumer experiences
Major changes are sweeping through the retail sector, as new technologies transform business models and alter the experience and expectations of consumers.
Increased automation, artificial intelligence, new online platforms and virtual reality present new commercial opportunities for many businesses. Understanding and getting ahead of these trends and the impact they are having on consumer behaviour is key.
Technology adoption gap in Irish retail Retail Ireland recently published a major report on the digital transformation of the sector and its impact on the Irish retail landscape. It found that the level of disparity between the rate of adoption of technology among Irish retailers is concerning. While some retailers are at the forefront of technological innovations, others are struggling to overcome significant barriers. These include cost, time and a lack of expertise and skills in key areas.
Retailers seek tech startup partnerships
Many retail businesses are changing their business models and looking to partner with other service providers to enhance their customer experience. This includes using the capabilities and resources alongside other sectors and tech startups to develop new technologies and customer solutions.
Almost 40% of the retailers that contributed to the report are already partnering with tech startups while another 33% are looking for tech startups to collaborate with.
Developing data expertise for system integration
The integration of systems to deliver real-time consumer insights is one of the key priorities. However, a majority of businesses said a lack of available data experts makes it difficult to fulfil their potential in this area. Retraining current staff and bringing in new expertise from outside is, therefore, part of the solution for many.
The challenge facing businesses, however, is that many of these skills are already in high demand from other sectors, and attracting and retaining this talent is becoming more difficult.
There is no easy formula to tackle this problem, but providing learning and development opportunities, competitive remuneration, new career opportunities and an environment where employees can thrive is a good start.
Tech enabling enhanced personalisation Technology and automation will free up the workforce from routine and repetitive tasks allowing them to focus more on customer-facing activities providing a new level of personalisation and improved customer experience. Putting in place the right strategy and having the skills to deliver it where the focus now needs to be.
Sales Director Ireland: Sammi Taylor samantha.taylor@mediaplanet.com Managing Director - Ireland: Ross Bannatyne | Senior Designer: Aimee Rayment Senior Content Manager: Angelica Hackett O’Toole | Head of Digital Operations: Harvey O’Donnell Paid Media Manager: Jonni Asfaha Social & Web Editor: Henry Phillips All images supplied by Gettyimages, unless otherwise specified | Contact information: ie.info@mediaplanet.com or +44 (0) 203 642 0737
Arnold Dillon Director, Retail Ireland
Joe Walsh Chief Commercial Officer Ireland, Capita
Capita
Tony Greenway
Navigating trends and the importance of local shopping
Learn about the future of shopping with trends in eCommerce, ethical choices and value for money — and why you should support local Irish businesses today.
As the retail landscape continues to evolve, the future of shopping is shaped by emerging trends in ecommerce, shifting consumer sentiment and a renewed emphasis on value for money.
In the run-up to Christmas, these factors are particularly significant, especially for Irish consumers who are increasingly recognising the benefits of shopping for local brands.
eCommerce evolution and consumer expectations
The rise of eCommerce has transformed how we shop, offering unparalleled convenience and a vast array of choices.
As digital platforms become more sophisticated, consumers now expect seamless, personalised shopping experiences. Guaranteed Irish will be supporting our members on the TikTok Shop Irish platform soon.
Ethical shopping
However, with this convenience comes a shift in consumer sentiment. While online shopping offers speed and efficiency, many consumers are increasingly concerned about the environmental impact of fast fashion and excessive packaging. This growing awareness is driving a preference for more sustainable and ethical shopping options — a trend that is expected to shape the future of retail significantly.
Many consumers are increasingly concerned about the environmental impact of fast fashion and excessive packaging
Technologies such as artificial intelligence (AI) and augmented reality (AR) are enhancing online shopping, allowing consumers to virtually try products before buying. These advancements are not only driving online sales but are also setting new benchmarks for customer service across all retail channels.
How ‘design thinking’ is placing customers’ needs at the heart of retail
A ground-breaking university course is embracing the concept of design thinking to help shape the future of retail and eCommerce.
Customer centric approaches are playing an increasing role in shaping the future of retail and eCommerce. Within that, experts point to greater integration of design thinking — a problem-solving methodology that helps designers understand user needs to develop solutions for products that better meet customer requirements.
Design innovation that understands customer needs
Sponsored by Maynooth University
Dr Threase Finnegan-Kessie, Maynooth Assistant Professor and MSc Programme Director at Maynooth University Department of Design Innovation, says there is great potential for design thinking to transform the retail and eCommerce sectors as it “shifts the focus from simply selling products to understanding and meeting the deeper needs of customers.”
Value for money: a consumer priority
In today’s economic climate, value for money has become a top priority for consumers. Rising living costs mean shoppers are more discerning, seeking out quality products that offer longevity rather than opting for cheaper, disposable alternatives. This trend is particularly evident in the lead-up to Christmas, where thoughtful gift-giving is valued over quantity. Retailers that can offer a balance of quality and affordability are likely to thrive in this environment.
The importance of shopping local According to Market Dynamics 2024, 94% of consumers believe that by purchasing from firms with the Guaranteed Irish brand, they are reducing their carbon footprint.
In a sector where community engagement is increasingly important, Dr Kessie points to the example of Starbucks Community Stores. These stores are designed with local communities to address specific needs.
Similarly, Patagonia engages the customers through their Worn Wear program, which encourages the repair, reuse and recycle of Patagonia gear and promotes sustainability.
Intensive learning in design thinking The Department of Design Innovation at Maynooth University is leading the way in customer centred design by providing MSc Design Innovation students with the skills to make valuable contributions across the retail sector. The course attracts people from all stages of working life and diverse backgrounds, including those from other degrees, those already in work,
returning from a career break or upskilling.
Associate Professor Dr Iain Macdonald, Head of the Department of Design Innovation, says: “There is a whole spectrum of different people coming to work together, and that variety stimulates really deep learning.”
He says the programme, with two days of intensive face-to-face learning a fortnight, particularly appeals to people already in employment “who can come and learn with us.”
Diverse backgrounds
After launching in 2014, the course was named best new post-graduate programme in Irish education.
“Its aims and ambitions are to take students from different backgrounds and look at human-centred issues and learn a process, define a problem and then create products and services that can be tested and taken to market,” says Dr Macdonald.
Dr Finnegan-Kessie says: “One of our biggest success stories is a GP who came to the course, got a sense of what design thinking can do and, along with a classmate, set up a successful eCommerce business called BeyondBMI.
“It highlights how you can come to this course with passion and interests and use this as a space to develop and meet people that you can collaborate with.”
Dr Iain Macdonald Associate Professor, Head of Department Design Innovation, Maynooth University
maynooth university.ie
Dr Threase Finnegan-Kessie Assistant Professor, Department of Design Innovation, Maynooth University
WRITTEN BY Mark Nicholls
Sinead Mitchell Head of Marketing & PR, Guaranteed Irish
It’s not just store and eCommerce: it’s also remote sales and software point-of-sale terminals.
A profound partnership with a payments provider that embodies ‘togetherness’
Learn how a payments provider supplies real-time data for every store and country where it works with IKEA — and how it helps the retailer make better business decisions.
Elavon processes an amazing 7 million monthly transactions for the Swedish multinational retailer IKEA, covering in-store, eCommerce and remote sales, as well as software pointof-sale terminals. However, the relationship covers much more than just payments.
Secure payment partnership
Ingka Group is IKEA’s parent company, franchising 482 IKEA stores across 31 markets and counting. Each year, around 657 million people visit these stores, with over 3.8 billion visits to IKEA.com. “We strive to make sure IKEA customers can pay [for their goods] with the payment product they want to pay with and feel safe and secure that their payment is protected,” explains Sam Langsford, Ingka Group’s inbound payments specialist for IKEA.
Within this global framework, the partnership with Elavon goes back a long way — starting in Belgium in 2012. This relationship has grown into 11 markets since then, and so has the range of payment options for shoppers. “It’s not just store and eCommerce: it’s also remote sales and software point-of-sale terminals,” says Langsford.
Aiding logistics and expansion
Since 2009, when IKEA opened its first Irish store in Ballymun,
shoppers have taken the retailer — and its famed meatballs — to their hearts. Now, delivery times for Irish customers are even faster. Several ‘plan and order’ points have also opened across the country. Tracking orders around Ireland, and the world, must surely be mind-boggling. That’s where Elavon comes in.
More than just payments
To help the retailer make better business decisions, the payments provider supplies real-time payments data for every store and country where it works with IKEA. “One of the great things about having a key relationship with a global partner is the transferability of their core services to every facet of our operation,” says Langsford. “So, if the customer’s presenting a card at a terminal in the checkout area, that’s the same as the customer writing in their card details on the website. It goes into the same channel of information.”
Elavon operates the same platform across the 11 markets where it works with IKEA. This is important to the retailer: the ability to pull data and run its operations in a consistent way — wherever the store or customer is located. Not only can it deliver what IKEA needs when it comes to payment reporting and analytics, but it can bring ideas to IKEA as well.
“One of the things we’ve been able to deliver together is what we call a ‘data foundation’ of payments: a
wealth of almost real-time data on our payments for every store and country we’re operating in — telling us more than we used to know about our payments, our customers and a lot more that we can take to the business, to help make better decisions,” Langsford explains.
“For example, we’re able to see what kind of customers are using a corporate card, but not actually presenting themselves as a business customer. That’s valuable information for us as a business because we can target that type of customer a bit better. We didn’t have that information before.”
Shared business values
IKEA started as a tiny mail-order company in rural Sweden. Yet, even now, as a global home-furnishing brand that brings affordability, design and comfort to people all over the world, its vision remains the same: to create ‘a better everyday life for the many people’.
“Elavon embodies quite a number of the IKEA values. The principal one I’d point to is ‘togetherness’ — or ‘tillsammans’ in Swedish,” Langsford explains. “I can pick up the phone or send an email to our key relationship manager and feel like my question is going to be answered in a very simple way, quite quickly.” Langsford sums up his working relationship with the payments provider in one word: “Easy.”
Sam Langsford Ingka Group’s Inbound Payments Specialist for IKEA
How to avoid card fraud during busy periods
When shops get busy, fraudsters strike. Protect your business from payment fraud. These top tips will help stop you from falling foul of the fraudsters, as well as helping you to safeguard your transactions to keep your data secure.
Agood payments provider will help keep your payments secure, using the latest technology to encrypt data — protecting your customers’ sensitive information and your reputation. However, there’s still the human factor. Clever con artists will prey on your emotions and fears, so being wise to their tricks will keep you a step ahead.
Payment fraud that distracts staff
Fraudsters take advantage of busy shops and try to distract you when a purchase is being made. While the card is being entered into a machine, the scammer cancels the original sale before it is fully processed and instead issues themself a refund. Be wary of attempts to distract your staff and double-check the final receipt once it has been printed.
If you spot a fraudulent refund has been processed, contact customer services who will show you how to void that transaction. Any business with a card machine can fall victim to this, but you’re more likely to be a target when busy.
Playing on your emotions
In card-not-present fraud, stolen card details are used to pay over the phone. Often, the caller will appeal to your softer side: for example, claiming to be buying in bulk
for children or making a charitable donation. After the items have been supplied, the genuine cardholder files a chargeback request. By this point, the criminal is long gone — leaving you out of pocket.
What to look out for
• New customers looking to purchase large orders over the phone
• Customers looking for goods to be delivered ASAP — they might even organise a courier themselves
• Buyers who are unconcerned about price, availability or the specific details of the products ordered
• They offer up multiple cards when a transaction is declined
Steps to prevent you from becoming a victim
1. Think through the order. Does it make sense they are ordering this volume of a product?
2. Ask the customer to call in person and pay by chip and PIN.
3. Avoid card-not-present transactions where possible; use Pay By Link instead.
Importantly, always remember that if it seems too good to be true, it probably is.
Top eight reasons for cart abandonment
A huge number of people abandon an online shop at the point of checkout. To reduce cart abandonment, learn why shoppers leave and how to create a seamless online buying experience.
Ashocking number of online shoppers don’t follow through on a purchase. Each abandoned sale is lost revenue for your business.
Survey explores cart abandonment
An aggregate of dozens of surveys put together by the Baymard Institute suggests that about 70% of browsers don’t buy what they have put in their basket. It’s what is known in the trade as cart abandonment. Unlike a bricks-and-mortar business, you can’t use charm to get the sale over the line.
Those shoppers are likely to be spending their money elsewhere. So, what can you do? Elavon commissioned a survey to find out the most common reasons why people pull out of a sale.
Removing barriers to purchase completion
The top reasons are: expensive delivery, security concerns, having to create an account, preferred payment option unavailable, not enough delivery options, no option to pay in home currency, forgetting account details and having to enter card details.
“It’s all about removing friction,” says James King, Head of Professional Services at Elavon Europe. “Remove every barrier possible between the customer and the checkout, so it’s as easy as possible to pay.”
He emphasises: “Some pain points are necessary — like fraud checks — but removing obstacles to paying can only improve your customer’s experience and drive up sales.”
Scan the QR code to read the research in full.
James King Head of Professional Services, Elavon Europe
Brian Kinsella Senior Regional Fraud Manager, Elavon Europe
Images provided by Elavon
Digital tools can automate mundane tasks, allowing employees to become more strategic and focus on more fulfilling projects that add value to their company.
The value of career and upskilling opportunities in digital business
The ever-evolving technology being used in the workplace is creating a skills gap and leaving workers feeling left behind. This, however, can be counteracted with digital upskilling.
Digital upskilling is the process of expanding and enhancing an individual’s digital skills and competencies to meet the evolving demands of the digital era. This should be a continuous learning journey that helps individuals stay relevant in their roles and ensures that organisations remain competitive and innovative in a fast-paced digital world.
Digital skills gap threatens growth
According to the World Economic Forum, 6 in every 10 workers will require digital training before 2027, so organisations must plan their talent development for both the immediate and long-term future. The Global Skills Gap Report by Udemy showed that 62% of employees worldwide personally felt affected due to the skills gap in their jobs. The digital skills gap is holding both companies and employees back from unlocking their potential. Digital businesses should strive to empower their employees rather
than constantly be playing catch up. Organisations risk experiencing stagnation if their workforce isn’t prepared to take on the challenges of digital transformation.
How to upskill strategically
The key to upskilling is gaining c-suite buy-in. This top-down approach means a company is united in its efforts to upskill and empower employees. Once you have the backing of the c-suite and the cooperation of department leaders, you can start honing in on the specific skills your workforce needs to operate successfully through digital transformation.
Career benefits of digital upskilling
Digital upskilling empowers employees with new skills and knowledge that are highly sought after in the current and future job markets. Employees who continuously invest in their professional development through digital upskilling find themselves in a stronger position to pursue career
advancements and explore different industries or sectors.
Digital tools can automate mundane tasks, allowing employees to become more strategic and focus on more fulfilling projects that add value to their company. The improved efficiency brought about by digital upskilling leads to a sense of accomplishment and satisfaction in the workplace.
Employees who have access to continuous learning opportunities and feel supported in their professional development are more engaged with their work. They are driven to apply their newly acquired skills to tackle challenges and contribute to their organisation’s success.
Caroline Dunlea Chairperson, Digital Business Ireland
As digital platforms become more sophisticated, consumers now expect seamless, personalised shopping experiences.
~Sinead Mitchell, Head of Marketing & PR, Guaranteed Irish
Employees who have access to continuous learning opportunities and feel supported in their professional development are more engaged with their work.
~Caroline Dunlea Chairperson, Digital Business Ireland
