Businesses today face numerous challenges, such as increased competition, staffing issues, and rapidly evolving technology. However, businesses across the world are driving a paradigm shift in the commerce landscape through innovation, adaptability, and creativity. Square’s annual Future of Commerce report provides insights into how businesses and customers in the U.S., Canada, the U.K., and Australia will shape the global commerce landscape in 2024.
With 43% of customers feeling less optimistic about their finances due to inflation and rising costs, businesses need to prioritize value and efficiency to stay competitive. Meanwhile, 80% of customers are open to trying new offerings from companies known for something else, and 86% express interest in participating in exclusive perks, activities, or events. Throughout the year, businesses are expected to adopt technology and prioritize those leveraging AI or automation for enhanced seamless customer experiences.
Automation is highly regarded by both retail and restaurant owners, with 100% attesting to its positive impact on their businesses. Forty-five percent of retailers witness improved employee retention and increased profits, while 67% of restaurant owners credit automation for direct customer benefits in experience and communication. Moreover, customers are on board with automation, with 76% in restaurants and 67% in retail preferring it over live staff for specific tasks like reservations or inventory checks.
Furthermore, to remain competitive in the dynamic commerce landscape, businesses are adopting multihyphenate tactics like diversifying revenue streams and introducing non-core offerings. A notable 77% of restaurants aim to expand by adding offerings such as meal kits, subscriptions, events, or merchandise. Similarly, 99% of retailers plan to invest in additional revenue streams, focusing on in-store events or advertising offerings to stay up-to-date with industry trends.
In 2024, restaurant growth will emerge as an influential global industry driver, with 100% of surveyed owners across all restaurant types planning expansion. To fuel this growth and remain competitive, restaurateurs will align with customer preferences, incorporate environmentally sustainable practices, and leverage data-driven loyalty programs to understand customer needs and preferences better.
Retail owners also proactively plan to enhance their strategies in the ever-evolving marketplace. In the upcoming year, they will emphasize strengthening customer relationships and offering unique experiences to stay competitive. Notably, 56% are shifting their attention to refining marketing tactics for Gen Z, reflecting a significant increase from the 43% who targeted this demographic in 2022.