INDUSTRY NEWS
Is less human interaction in retail here to stay?
Two consumer behaviour surveys published this month reveal that a desire for more technological intervention in our shopping habits has emerged post-pandemic.
Online shopping sales have remained strong as brick-and-mortar shops reopened after months of closure with e-commerce revenues increasing by 2.5 per cent the week following the April 12, according to new research from Wunderkind.
Web traffic also saw an increase, rising by 2.4 per cent over the same period, demonstrating continued digital demand despite the opening of retail shops.
“There’s been much debate as to whether the boom in online could successfully be sustained once retail reopened,” said Wulfric Light-Wilkinson, general manager EMEA, Wunderkind.
“And, from what we’ve seen so far, even pent-up demand for real-life shopping experiences in the first week of opening hadn’t deterred consumers from the ease and convenience of shopping online, suggesting the shift to digital is here to stay."
He added: "But the real test now comes in how brands and retailers connect and engage with their customers moving forwards, to turn the new cohorts who have come online into repeat shoppers and those existing shoppers into long-term brand advocates.”
A separate study by business systems provider K3 found that 51 per cent of UK shoppers would prefer a more autonomous and technology-enabled shopping experience in order to avoid store assistants,
The study also found that 41 per cent of people would like to see more self-service tills introduced.
The research, which surveyed over 2000 UK shoppers, revealed that a further 16 per cent of consumers want the introduction of checkout-free stores like AmazonGo.
The coronavirus has accelerated the trend towards contactless store experiences, with one in ten shoppers saying they would totally avoid a retailer if they didn’t have self-service options.
13 per cent of shoppers said they want virtual shop assistants to guide them around stores, while 8 per cent of consumers surveyed said their first preference is for biometric tech like face scanning to unlock a more personalised shopping experience.
These customer demands are significant, with a third of respondents saying that they would stop using a retailer for not offering services they want to see in 2021.
For example, the report indicates that retailers could risk losing half of their customer base if they don’t show their environmental credentials.
“Retail is an industry constantly in flux. To be successful, retailers need to focus less on an uncertain future and more on meeting the needs of their customers in the now,” said Andy Howell, global marketing director, K3. “The research shows that shoppers are looking for convenience, digitised experiences and new services.”
Howell said that there is an underlying demand for smarter, more connected shopping experiences.
“A piecemeal approach will not solve the problem; retailers need to instead create a seamless and innovative shopping experience across all channels,” he warned. “This means bringing all the functionality of online to real-world retail; integrating loyalty, concierge, merchandising and payments into one mobile-based experience. This will also enable a data-driven approach that is key to understanding and meeting customer needs in the now.”
