The end of the year is filled with reflections, both personal and in business. The new year presents an opportunity to take stock of what went well and what could be improved upon from the past twelve months, as well as what opportunities may lie ahead.
Looking ahead involves trying to identify trends that could impact your industry in general and your business more specifically. The hope is that whatever might be big in the new year is something your company already has a beat on. If not, there’s an element of figuring out what needs to be on your radar fast. Here’s a look at what some of those trends may be, and how data figures into the overall picture as well.
1. Artificial intelligence
Any conversation about trends must begin with artificial intelligence. It is not going anywhere, and its impact will only increase in the coming years. Whether it’s continuing to build its generative capabilities, or expanding usage of what it is currently doing, AI figures to grow in some capacity in every industry.
One interesting take on AI is how its usage can align with companies’ sustainability goals (see below), since it requires so much energy to perform. Some defenders of AI point out that it can complete many tasks more quickly than they would otherwise be done, so it could in fact be saving energy in the long run. They argue that the efficiencies produced by AI could offset its impact on the environment.
2. Sustainability and circularity
Get used to hearing the term “circularity.” That’s the new buzzword around sustainability. It refers to reusing materials rather than wasting them. Whereas sustainability as a whole emphasizes minimizing one’s impact on the environment, circularity involves actively working to reuse materials so that sustainability can be achieved with less waste.
It will continue to be an important trend in the coming year because of how much consumers value sustainability. Customers in many industries care about how their products are made and want to know the source of the materials that have been used. Companies ignore the sustainability trend at their own risk. In a recent survey by the National Retail Federation:
- 50% of consumers say they are willing to pay a premium for sustainable brands
- 62% say they’re willing to change their purchasing habits to reduce environmental impact
3. Internet of Things
Working to enhance the customer experience should be front of mind for any business, and one way they are doing this is through Internet of Things (IoT) technology. On the one hand, the connectedness that IoT provides improves business efficiency. It can allow for a comprehensive overview of a product from creation to shipping through various checkpoints, or sensors that can provide information about warehouse activity to an entirely different location.
Customers, too, can benefit from IoT. The technology can provide real-time updates about purchases, or it can provide connected information about every step of the shopping experience. In the end, IoT gives organizations an opportunity to make their customers happy, which in the end is good for the bottom line.
4. Immersive technology
Another opportunity to enhance that customer experience is through immersive technology, such as augmented reality (AR). More companies are finding opportunities where they can work in immersive experiences, whether that is in-person to promote a brand, using screens and sounds or by setting up a pop-up store, or through the digital AR experience.
For customers, AR allows them the full benefits of shopping without leaving home. AR can show a consumer how they might look in certain clothing or check how a piece of furniture will look in their home, to name a couple of examples. Surveys have found that customers who use augmented reality during their shopping process are more confident in their purchase, less likely to return products, and are much more willing to share their positive experience in some way.
5. The role of data
As always, all of these trends include the constant monitoring of data, and figuring out how to use it to your advantage. Data can help guide decisions involving all of the above trends, whether it’s tracking sustainability goals, or helping target particular customers for opportunities to use AR. The right analytics solution can bring together data from across all aspects of your business to create one singular source of truth, allowing decision-makers to have full confidence in their work.
One factor that could impact any of these trends Is the fact that a new presidential administration will be taking over in January. Policy changes could impact these trends or introduce new ones that might not be on people’s minds right now. A comprehensive, flexible solution can help you adjust to all trends and potential industry changes that might impact your business under any circumstances.
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