More than a half (60%) of consumers globally are keen on having a “just walk out” shopping experience akin to Amazon Go, finds a new study.
Some 77% of the surveyed Generation Z and X in particular say that they are “especially interested” in the frictionless service, according to Consumer Connectivity Insights 2018 survey, conducted by MuleSoft.
The study questioned more than 8,000 UK, US, German and Dutch shoppers, as well as some Australian and Singaporean adult consumers to guage whether retailers are meeting customer expectations for connected, personalised shopping service.
Geographically, Singaporean (87%) and US (70%) shoppers say that they have “the strongest” preference for the Amazon Go shopping treatment, while the UK (50%) and Dutch (44%) clientele are least in favour.
The research goes on to say that retailers must stay ahead of innovations to keep their clientele engaged, as technological quantum leaps have raised the service bar to unprecedented levels.
In fact, more than half (51%) of questioned shoppers reveal their interest in frictionless communication with retailers via messaging services including WhatsApp, iMessage and Facebook Messanger. This figure is higher (61%) for Generation Z and X.
“As consumer demands on the retail industry at large increase, some retailers are beginning to deploy IoT, VR and AI to enhance shopping experiences. The launch of Amazon Go this year, for example, raised the bar for seamless retail experiences,” explains David Chao, head of industry solutions, MuleSoft. “To meet rising consumer demands for new, frictionless experiences, retailers will need to ensure these new technologies are deployed and integrated effectively with existing systems across their ecosystem.”
When it comes to providing a personalised experience, retailers appear to be missing this opportunity. Only half of the survey participants agree that retailers deliver this type of service.
A third (32%) of the surveyed consumers say that they would spend more with the retailers that do provide such an experience as opposed to one doesn’t. Singaporean and American shoppers appear to be more enthusiastic about the tailored experience, with figures reaching to 47% and 41% respectively.
More than a half (53%) are willing for their shopping behaviour within physical and online stores – and outside of them – to be tracked if it meant they were able to receive personalised offers and promotions. This percentage is higher for Singaporeans (73%) and Americans (60%).
The research also reports that delivering a connected consumer experience remains a challenge for many retailers.
More than half (56%) of shoppers believe that retailers provide a disconnected experience across channels. Highlighting the impact, 57% of the questioned cohort say they would consider changing retailers as a result of receiving a disconnected experience. This is mainly a concern in Singapore (71%) and Australia (67%), where consumers indicate that they were “more likely” to change retailers following a disconnected experience.
“Despite the vast amount of customer data retailers should be able to capture online, and through loyalty programs, many are struggling to meet consumers’ expectations when it comes to delivering a personalised experience,” continues Chao. “In many cases, retailers are not able to capture and take advantage of customer data because the CRM, ERP and POS systems they have in place cannot talk to each other.”
He adds: “This leaves consumers with a disconnected experience. Those retailers that successfully connect their systems and unlock customer data stand to reap significant rewards such as increasing customer acquisition, retention and spend. This can best be achieved by creating an application network, which connects applications, data and devices using APIs. This enables retailers to seamlessly integrate their existing legacy systems with new digital technologies as they continue to emerge, future-proofing the retail experience for whatever comes next.”
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