For today’s retailers, understanding shifting consumer trends can make the difference between a successful quarter or a painful restructuring. After being behind the curve in embracing the transformation that online and mobile shopping brought to their business, retailers are increasingly turning to Silicon Valley to try to recapture the spark of shopper interest – everything from chatbots to virtual and augmented reality are being rolled out in storefronts across America.
The challenge for retailers however is not in embracing these new technologies, it’s in getting beyond the gimmick and making these investments relevant to their shoppers needs. The harsh reality is that consumers don’t care about what technology takes over, they do care about if retailers are using that technology to increase convenience and personalization in their shopping experience. Here lies the current disconnect between technology hype and consumer reality.
To bot or not?
Hardly a day goes by without another brand chatbot announcement – TacoBot, E.L.F. Bot, H&M Bot, DOM to name a few. Most recently at F8, Facebook’s annual developer conference, the social network doubled down on chatbots for Messenger, announcing several new bots and features. With so many bots in the market, the natural assumption is that shoppers are demanding more bots and love chatting with them. The reality is, only 19 percent of consumers are even aware chatbots exists and just nine percent think they will positively impact their shopping experience.
Online fashion retailer Everlane was one of the first Facebook Messenger partners to test chatbots. The company has recently terminated the service, saying it would rather stick with email.
Part of this disconnect is being fueled by retailers’ desires to create meaningful connections with consumers, but to do so in a scalable way, which doesn’t involve adding head count to already lean teams. However, meaningful connections can quickly turn to mocking, as ASOS unfortunately learned after their chatbot’s unintentionally hilarious responses became internet memes.It’s not that chatbots cannot be helpful, 54 percent of consumers who want to use chatbots believe they can eventually assist in customer service needs. Retailers need to understand that chatbots are still in the beginning stages of their evolution. The technology is going to continue to evolve, but for now handing over essential services like customer care, should be approached with caution by retailers or else they will risk alienating an already fickle customer base.
What’s real with virtual and augmented reality
Contrary to chatbots, virtual and augmented reality rank higher in consumer awareness and interest. Augmented reality (AR) is becoming an actual reality in the shopping journey with 58 percent of consumers…
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