Understanding consumer behavior is key to driving innovation in retail IT. By analyzing trends and preferences, merchants can adopt technologies like AI and predictive tools to personalize experiences, streamline operations, and stay ahead. The RSPA asked select members of the RSPA NextGen Rising Stars to share their insights on the future of retail IT based on emerging consumer trends. Sharing their perspectives are:
- Scott Dickens, OrderCounter POS
- Jon Etxeberri, EDGE Merchant Processing
- Heather Philpott, ScanSource
- Blake Rouse, Sola (formerly Cardknox)
What resources or tools do you rely on to gather and analyze consumer data in the retail industry?
Etxeberri: Mainly the RSPA and fellow dealers.
Dickens: While we certainly gather insights from industry publications, blogs, and trade shows, our most valuable source of information comes from our relationships with our partners and merchants. They have a firsthand understanding of what consumers need and what merchants are looking for. Innovations like contactless payments and QR ordering are all shaped by the real-world feedback and demands that come from these relationships.
Philpott: Industry blogs or publications, following vertical-specific social accounts, and getting into the field to see what is working and what isn’t. (You know that piece of hardware everyone needed to add to their technical stack, but no one is actually using).
Rouse: My best source for industry news and to forecast trends are the RSPA Blog and other RSPA resources that bring together different perspectives from around the retail IT community. Beyond RSPA, I have found that trade shows, tech conferences, and brand events like Apple’s Worldwide Developer Conference can be great places to see what others are working on and to gain inspiration for new solutions we can bring to market as well. There are numerous online publications and newsletters such as Pymnts.com, The Paypers, and Retail Dive that are often loaded with useful nuggets from the retail IT industry.
How do you translate insights from consumer data into actionable strategies that drive innovation within your organization?
Dickens: Has anyone here ever played Pin the Tail on the Donkey? But seriously, we consider every aspect carefully. What’s the demand? What resources are needed to meet it? How does this set us apart from the competition? Does this innovation sell more systems? By exploring these questions, we often come up with solutions that not only address what consumers are asking for but also go beyond their expectations.
Etxeberri: I usually study an industry, product, or service and see if it complements mine. Then, I offer that industry, product, or service to “safe” clients to test, and if all goes well I offer it as a service to be sold.
Rouse: One of the big buzzworthy topics of the past few years has been the increasing conversation around crypto currencies. In response to this, our innovation team built out a connector to allow merchants to accept crypto currencies as a form of payment for online purchases. While there has been tremendous interest at the partner/ISV level, consumer adoption has been slow up to this point. We’re not abandoning this technology, but it doesn’t seem consumer preference is quite ready for crypto to hit the main stage just yet.
Conversely, we have partners racing to implement Apple Pay and Google Pay for their merchants to meet the ever-increasing demand from consumers, so we are investing in helping our partners deliver this and other mobile-focused technologies as quickly as possible. Apple Pay saw just 10% of iPhone users activate Apple Pay in the first two years after its initial release but we now see mobile wallets account for over a third of all transactions both in store and online. Timing is everything, so it may be that crypto payments for everyday consumer transactions are still coming but just not there yet.
Philpott: Our goal is to take those insights and create ways to enable our channel partners to support the latest trends or needs of their consumers. Whether this means adding an emerging supplier to our linecard, creating a new program to support the lifecycle of their solution, or providing a value-added service to empower their go-to-market offer – we are always looking for ways to help our partners deliver what their end customers need to be successful.
Have emerging technologies like AI helped you implement strategies more efficiently and respond to market demands more quickly?
Philpott: I have not leveraged AI (yet) to implement strategies, but I believe AI is a great tool to capture market insights and even personalize what we recommend to our channel partners. By leveraging historical data, we can automate various parts of their customer’s journey and deliver clear recommendations for business growth.
Dickens: Emerging technologies are where the excitement lies! AI has helped us enhance communication, spark new ideas, and identify potential challenges early in the planning process. Tools like CoPilot have also boosted our development team’s efficiency and improved the reliability of their code.
Rouse: I suspect that as AI tools become more prevalent on consumer devices, we will see new opportunities for aggregating consumer data to help with forecasting consumer preferences and adjusting retail strategies for merchants. For example, AI can help forecast what clothing trends seem to be more likely in the coming season, allowing merchants to better forecast inventory requirements for particular items.
When we evaluate partners, especially those in the startup phase, we are always looking for partners who are willing to leverage new technologies like AI-assisted inventory management to help drive merchant growth. These types of partners tend to grow at an accelerated pace because they are willing to be an innovator in their category.
In the payments business we are already using AI and consumer buying habits to more quickly identify and respond to fraud risk in real time. As other emerging tech like quantum computing, onboard AI such as Apple Intelligence, and yes, even crypto currencies, become more commonplace, new opportunities will arise for those willing to innovate.
RSPA and its members continue to collaborate and find ways to recruit and build the next generation of leaders. A prime example is best practice sharing that takes place in the RSPA Community meetings. The RSPA NextGen Community meets several times each year to provide a support network and resources for future generations and their companies to advance in the retail technology industry. If you would like to get involved in the NextGen Community, please email RSPA VP of Education Kathy Meader at KMeader@GoRSPA.org.
About RSPA NextGen Rising Stars
RSPA NextGen Rising Stars acknowledges the contributions of young professionals who exemplify the industry’s next generation of channel leaders. Each Rising Star possesses expertise, innovation, and leadership skills that has propelled them to the forefront of the industry, inspiring their peers and colleagues. The RSPA is proud to recognize and showcase these Rising Stars online year-round and in person at our RetailNOW trade show and conference. Meet the 2024-25 RSPA NextGen 50 Under 40 Rising Stars on this webpage.
About RSPA NextGen Community
The RSPA NextGen Community works to identify and develop opportunities for future leaders and the rapidly changing technology landscape. Joining this community allows you to meet others who share passion for retail technology and provides a forum to share ideas on how the industry, and the RSPA, should move into the future. The NextGen Community hosts virtual discussions throughout the year and meets in person at RSPA’s signature conference RetailNOW. Learn more about the RSPA NextGen Community on this webpage.
