Report on the state of french commerce in 2024: towards a new recruitment and retention strategy in an unstable economic context
In an economic environment marked by uncertainty and constant adjustments, decision-makers in the commercial sector face unprecedented challenges. The latest edition of the “State of Commerce Report” from Shopify France highlights the importance of rethinking commercial strategies to meet the changing expectations of consumers. For companies, particularly in the recruitment sector, this means not only adapting existing practices but also integrating new technologies and optimizing human resources.
Redefining customer and talent retention: A dual approach
Today, economic uncertainty pushes consumers to redefine their priorities. Therefore, companies must urgently review their retention strategies. According to the Shopify report, only 18% of French consumers are optimistic about the future of the economy, resulting in reduced discretionary spending and an increased search for value.
Customer retention: For commercial enterprises, this involves enhancing the quality of their products and services while maintaining competitive prices. A crucial yet often underestimated aspect is the importance of a consistent and seamless customer experience across all channels, whether digital or physical. Customer loyalty is no longer solely earned through products but through the overall experience offered. Consistency and personalization are the new keys to retention.
Talent retention: Similarly, in the recruitment sector, it becomes essential to apply these retention principles to talent management. With inflation and rising economic pressures, HR decision-makers must find ways to attract and retain top talent. They should turn to more holistic approaches, offering financial benefits as well as enriching career paths and flexible work environments. “By optimizing working conditions and the environment, companies can not only attract quality talent but also create a more appealing workplace. The key is to understand the specific needs of your employees and candidates and integrate them into a comprehensive talent management strategy,” emphasizes Victoire Duhem.
AI and Technology: towards a revolution in recruitment and commerce
The integration of technology, particularly artificial intelligence (AI), is another key factor highlighted by the Shopify report. More than 60% of French consumers believe that AI will simplify their shopping experience, and 72% of companies already have an AI strategy in development or implementation. However, the adoption of these technologies requires specific skills that many companies still need to acquire.
Impact on commerce: AI enables the personalization of the customer experience at an unprecedented level by analyzing purchasing behaviors to provide targeted recommendations and optimizing logistical processes. “The ability of AI to transform data into actionable insights is a revolution for commerce. But it must be accompanied by a clear strategy to avoid dehumanizing the customer experience,” explains Victoire Duhem.
Impact on recruitment: In the recruitment sector, AI also offers considerable opportunities. From automated candidate screening to predictive analysis of labor market trends, AI can help identify the most suitable talents for an organization while reducing the time and costs associated with recruitment processes. However, it is crucial that the use of AI is balanced with human expertise to ensure an ethical and inclusive approach.
Understanding and adapting consumer and candidate profiles : The report identifies four key consumer profiles: cost-conscious, quality-focused, connected, and aware. Each of these profiles has specific expectations and priorities that must be considered in a company’s commercial strategy.
Cost-conscious and quality-focused profiles: Cost-conscious consumers, representing 50% of the market, prioritize low prices above all. In contrast, those who prioritize quality, or 39% of consumers, are willing to pay a premium for products they perceive as superior.
Adaptation in commerce: Brands must therefore adjust their offerings to meet these different market segments. This may mean introducing product lines at various price points or enhancing products to justify a premium positioning. Adapting offerings to the specific needs of each consumer segment is no longer optional but a necessity to remain competitive.
Similarly, recruiters must understand the motivations of different types of candidates. Some prioritize job security and financial benefits, while others are more attracted to opportunities for personal and professional development. Tailoring job offers and career paths based on these profiles is essential to attract top talent.
Facing economic challenges: a human-centered strategy
The Shopify report also emphasizes that current economic challenges require a human-centered response. As companies fight to maintain their margins, it is essential not to lose sight of the importance of customer and employee experience.
Importance of customer and employee experience: In commerce, this means providing an exceptional experience, even in a context of cost reduction. Companies must be transparent about their price increases while striving to add value in other ways, such as enhanced customer service or personalized offers.
In recruitment, HR must ensure that employees feel valued and supported, even during budgetary restrictions. This can include measures such as flexible work arrangements, wellness programs, or simply clear and honest communication about the economic challenges faced by the company. Verbal recognition is also very important and affects team morale.
“Organizations have every interest in maintaining a trusting relationship with their customers and employees. In my profession, we assist our clients in their talent management strategies that place humans at the center of their concerns, which results in better resilience and sustained performance during tough times,” points out Victoire Duhem.
Conclusion
The “State of commerce report” sheds light on the profound transformations affecting the French commerce sector. For decision-makers, it is crucial to adapt their strategies in light of these new realities.
The insights shared in this document and through this article show that the key to success lies in a human-centered approach, combined with the judicious use of technology and data.
This article invites decision-makers to reflect not only on their commercial strategy but also on their approach to talent management. By focusing on retention, technological innovation, and a fine-tuned adaptation to the profiles of their customers and employees, they can successfully navigate this period of transformation.