Digital marketing trends 2020 in retail

Artificial Intelligence and Augmented Reality in marketing – we reveal the retail trends for 2020

Digitale Trends im Handel 2020

The year 2020 brings a lot of new topics in digital marketing. Here I present my four favourites for the most important trends in retail. So you can start the new year well prepared.

Digital marketing trend 1: Big Data becomes Usable Data

Retailers have already recognized the importance of data for future business models: Most companies already collect a large amount of information. But unfortunately these tons of data often disappear into silos. It is much more profitable to combine the information with holistic technological systems.

The best data is useless if it is not used sensibly. Companies should therefore build up knowledge in the area of data analysis. It is also best to define your own algorithm. Software manufacturers such as Adobe have also recognized the challenge in the area of Big Data: In 2020, they will launch new products on the market that will enable companies to build or customize algorithms themselves.

My practical example: Analytics Unlocked

Last year, we supported Siemens with concept and technology to build its own data platform: Analytics Unlocked. It consolidates the data from various sources and thus helps to control campaigns, use the budget optimally and plan it sensibly. This also impressed the jurors of the Digital Communication Awards – they awarded the project the prize in the category "Data-driven communication".

Digital marketing trend 2: Augmented Reality

Augmented Reality Marketing has already gained some fans in recent years. In 2020 it will become even more relevant in the retail sector. One reason for this is that the technology can be used with the user's existing devices. This means you no longer need expensive VR glasses to immerse yourself in augmented reality.

This is not only a benefit for the retail sector, but above all the end customers: For example, you can try on the extremely cool designer dress virtually at home. Or use Augmented Reality instructions to screw together the new kitchen shelf much faster.

My recommendation for marketing with Augmented Reality

From my point of view, the most important thing is that the application is very easy to use for the user. If he has to fight his way through endless instructions or strange navigation menus, the interest is quickly lost. In addition, the investment in sophisticated technical solutions is worthwhile – because this is the only way to make Augmented Reality an extraordinary experience.

Digital marketing trend 3: Social shopping & Co

In 2020, social media will continue to be one of the most important channels in digital marketing. But that does not mean that everything remains the same there. It would be boring. Here are my four most exciting developments for marketing in social media:

Grafik zur Verteilung der Influencer weltweit
Distribution of influencers on Instagram worldwide according to the number of followers, source: Upfluence, accessed on Statista

Social shopping generates additional turnover. The channel is especially relevant for the younger target groups. They want to buy the new dress of their Instagram idol right away. The easier and quicker this is done, the better. Social networks have recognized this and offer retailers special solutions to sell their own products. For example, we tested Instagram Shopping for a customer from the cosmetics sector.

New channels like TikTok are gaining market share – and thus relevance in the channel mix. The diversification of social media is progressing. For retailers, it is important to choose the relevant channel for the respective target group. Thus, TikTok is especially important for users between the ages of 13 and 18.

Grafik zur Nutzung von Social Meadia Plattformen
Proportion of 15 to 24-year-olds in Switzerland who use the following social media platforms at least occasionally in 2018 and 2019, source: IGEM, accessed on Statista

Data-driven marketing and augmented reality are becoming more important in the social web. Here data also provides the decisive knowledge to place the budget or reach the right target group with campaigns. Special applications enable companies to feed augmented reality content into the social networks.

Digital marketing trend 4: AI and personalization as a dream team

Artificial Intelligence helps retailers to offer personalized products in 2020. Smart home devices such as Alexa or Google Home play a role here. They open up a new distribution channel for the retail trade. In addition, the customer can be optimally advised with the data thus collected and smartly linked. This in turn is a prerequisite for more sales. 

My recommendation for the use of Artificial Intelligence in personalized marketing:

  • Create a personalization strategy. In addition to the respective target group approach, you also take into account the technological requirements.
  • Be brave. Especially with the smart home devices mentioned at the beginning of this article, you can still use first mover effects. Analyse your possibilities – and then creative ideas are needed.
  • Use beta testing. Measure the effects of your activities and adjust them if necessary.