​Report: Retailers' high-tech investments fail to dazzle consumers

New study reveals investing in shiny retail tech toys has attracted mediocre customer adoption to date

A rise in tech adoption in the retail space has seen consumer demands for more integrated and seamless experiences rapidly shifting, but not necessarily in the way retailers expect.

The Walker Sands’ third annual Future of Retail Report surveyed more than 1400 US consumers and showed that despite the rapid uptake of investments such as beacons and mobile payment facilities, adoption by customers has been relatively slow.

For example, while US retailers have invested heavily in in-store beacon technology, only 6 per cent of consumers have actually used the new offering this year.

The reason for the discrepancy was the majority of consumers surveyed are still concerned about privacy, message overload and security, the report found, with almost half finding the idea ‘creepy.’

But although beacons haven’t taken off as soon as some retailers expected, 70 per cent of consumers who haven’t used them said they would opt in if retailers offered the right incentives such as discounts, loyalty rewards or faster checkouts.

Adoption of mobile payments by customers in the retails pace has also been slow, and again, privacy and security concerns remain the primary reasons for consumer hesitance. But while only a third of consumers have used these applications in the year so far, US mobile payment transactions are expected to triple in 2016 to US $27 billion.

The study also revealed ecommerce has reached a saturation point in many ways, and consumer excitement has waned for some of the ‘sexiest’ emerging technologies. Unlike recent years, which brought game-changers such as Apple Pay, Amazon Prime Air and Alibaba’s IPO, much of the past 12 months has seemed like the same old story, the report found.

But dig deeper and customer expectations are still going through a major shift. For instance, there is growing importance of the supply chain for the customer, with the report showing seamless shipping, delivery and returns have become increasingly important to consumers. This has been reflected in retail investment in the area, with 29 per cent of capital expenditures last year going toward solutions like transportation and logistics, delivery options, order management, inventory visibility and returns management.

Forty per cent of consumers also expect to receive their first drone-delivered package in the next two years or less.

Expectations in the augmented reality space are also shifting. More than half of consumers see virtual reality ecommerce impacting their buying decisions in the future, and 62 per cent are interested in trying VR shopping. Nearly a quarter of respondents said they plan to buy a VR device in the coming year.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

Latest Podcast

More podcasts

Sign in