Tag Archives: Artificial Intelligence

Consumers want ‘real people not robots’ from retailers

IPM Blog

A study launched by Gekko titled ‘Service not Sci-fi’, reveals that UK shoppers would rather deal with real people not robots or artificial intelligence when it comes to shopping.

The study found that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32 percent) blaming an over reliance on technology for this decline. Half of those polled think that companies in the UK are using technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience.  Only 30 percent said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22 percent smart mirrors that show a 360 view of themselves, 16 percent a virtual reality changing room, 14 percent augmented reality to help visualise products in the home and 9 percent a talking robot assistant.

When it comes to buying online, 43 percent of UK shoppers have had their screen freeze while trying to make a purchase, so when asked what makes a great bricks and mortar shopping experience, 49 percent of those polled said it was down to having good staff on the shop floor, staff that know the products (49 percent) and staff that go the extra mile (47 percent). Coupled with this, 61 percent of the nation would prefer to deal face to face when complaining, 59 percent when enquiring or trying to find out more about a product and 73 percent when getting a refund.
And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22 percent) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34 percent) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16 per cent confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop.  The convenience of a store’s location is also stated as important by 43 per cent of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research, we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help.

Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

It’s little wonder, then, that 51 percent of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying.  And 47 percent of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77 percent) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option.  More than 4 in ten (43 percent) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23 percent) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, MD of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch.  With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

To read more visit IPM Bitesize.

To read the full results of our ‘Service not Sci-Fi’ research visit the Gekko Research Page.

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Market intelligence

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The term AI is being bandied about in all forms of media, but do many people actually understand how Artificial Intelligence is now becoming part of the consumer-electronics landscape in some of the most everyday products – almost making smart technology seem old hat by comparison.

The reality is that in order for AI to function, you need smart devices to metaphorically ‘join the dots’ to create an AI solution that works for you in your environment.

Probably the most recognised mainstream AI product to come to market is the Amazon Echo, which is expected to sell three million units in 2016, with forecasts of 10m for 2017. You’ll know the product – it’s that black cylinder with a blue pulsating light on top, promoted through those awful adverts where some chap asks Alexa to add tennis balls and dog biscuits to his shopping list.

In essence, Amazon Echo and its sibling Dot – which has no speaker but effectively does the same thing – are intended to be your assistant, connecting all your smart devices.

Combined with other IoT products, Echo enables you to voice-control your heating, lights, online orders, music streaming and on-demand services like Uber.

It’s impressive stuff, but you’ll always have to ask for Alexa, prefacing all requests with her name, which may make you feel somewhat daft. After all, the only device I want to talk to is my phone, as part of a conversation with a human being. I’m sure I’ll adapt to AI over time. Generations younger than me and in the future will think this the norm – making AI a surefire success and as commonplace in the home as a TV or a tablet.

While Amazon’s product is reasonably priced, its users have fed back so far that 87 per cent are satisfied with the device. Eighty-five per cent use Echo to set alarms, 82 per cent to play music, and two-thirds ask for news updates. Overall, 39 per cent of Echo users plan to increase their usage as support grows for the platform, which will be intrinsically linked to bolstering Amazon’s revenues.

This remains unlikely, however, when you consider what’s coming next – Google Home. The future of AI in the home is way more than just a ‘smart speaker’, as the category is being tagged. This innovation outclasses all other mainstream AI devices when you consider its compatibility across all Google platforms, including YouTube, Google Maps and third-party streaming services such as Netflix and Open Table. Finally, it’s compatible across all OS devices, but complemented by all ‘Made by Google’ devices from Pixel to Chromecast.

Google Home changes the game by setting the state of play in the ‘smart speaker’ category, taking it to the next level and setting the benchmark many will struggle to follow.

AI is a mainstay, not a gimmick, which will intrinsically evolve with your devices, appliances, streaming platforms and all forms of entertainment. Alongside VR, it’s the next big thing estimated to become a $2 billion-plus category by 2020 that you can’t afford to ignore.

With an estimated $400 million being invested in 2016 on content development, the industry has established Virtual Reality as a credible platform over and above Sony’s PlayStation VR, which is estimated to sell 2.6 million units in 2016 alone.

What VR will potentially help is declining PC sales, as users transition to tablets and phablets. With an eight per cent decline in global PC sales, it’s unlikely that VR will fill the gap, however it will assist in particular within the PC gaming category.

VR will, it’s believed, be a $50bn industry by 2021, with only half of that generated from gaming. So the rest is to play for, with smartphone adoption accounting for seven per cent of the market, but interestingly achieving a higher volume due to the low cost of VR equipment. Those familiar with VR will know Cardboard, which has been around, in tech years, for ages. But now we have Google Daydream, a device that yet again changes the market with innovation, design and distribution only challenged by the Samsung Gear (Oculus).

Whichever way you view it, both VR and AI are here to stay and the new kids on the block are stealing a march. There was a time that many thought these innovations would come out of Infinite Loop, instead it’s evolving from Mountain View and Terry Avenue. For the times they are a-changin’.

 

Read more at: http://ertonline.co.uk/opinion/market-intelligence/

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