Tag Archives: smart technology

Four strategies for mobile brands looking to build market share in 2021

Revised forecasts from IDC predict smartphone sales will have declined by 12% overall in 2020. Against this backdrop, the traditional approach to growing market share for mobile brands is as dated as music festivals, theatre trips or weddings. Instead, brands have needed to adapt innovative new strategies to weather the turbulence, respond to changing consumer needs and come out stronger. A 2019 playbook simply won’t cut it in a continuing world of social distancing and faded touchpoints. Here are four strategies for mobile brands looking to expand market share in 2021.

Focus on establishing credibility

It goes without saying, but it has been a very tough year for challenger brands, with consumers gravitating towards brands they already know. Market leader Apple has expanded market share in the UK from 49% in October 2019 to 53% in October 2020. In this new environment, it has been very difficult for new entrants to promote themselves and establish themselves in consumers’ lives, especially with the reduction in opportunities to physically see and touch a new product. Consumers will want to invest their hard-earned cash and goodwill into credible brands that they know and are likely to stay. Key to this is a brand that has a great portfolio, strong supporting ecosystem, great customer service and the marketing vision and ability to build a credible trustworthy brand. For those wanting to make inroads, they will need a best in class distribution strategy and the ability to really differentiate and personify a brand.

Build in-store knowledge and advocacy

A vital component for any brand intent on gaining market share is how the brand builds knowledge and advocacy among those tasked with selling the devices. This includes retail sales advisors and contact centre sales teams. When premium devices are pushing £1,000+, the customer also wants to have a touch and play, especially when moving into a new brand. While we are spending more of our lives on digital channels and less in shops, the fact remains that when people are shopping they are doing so with ‘purpose’. In other words, they are intent on buying something. A proof point for this is that we have seen conversion rates of over 40% of product demonstrations leading to a sale. Therefore having the right skilled staff in-store to make the sale on more infrequent trips is critical. Consumers also trust brands they can see in stores, as that lets them know that, as a brand, you are committed to the marketplace.

Being quick to adapt to rapidly changing circumstances

In today’s world, it is hard enough to plan two weeks ahead let alone six months. Therefore quick thinking and flexibility are critical. Brands have needed to adapt quickly to sudden government decisions, such as the two national lockdowns and various local restrictions we have seen. Many of the brands I work with have transitioned their activities back into distance sales with as little as five days’ notice. An omnichannel strategy has been needed with non-physical channels critical in 2020. Despite non-essential retail being closed, effective brand engagement continues through innovative e-learning and e-commerce. Many consumers upgrading or shopping for new devices won’t have the option of heading to the high street so have gone down the online or contact centre route. Brands that have been able to switch to providing virtual training and support to these channels have seen positive results.

Premiumisation is a good long-term strategy

A recent report by Counterpoint indicates that the wholesale average selling price (ASP) of the global smartphone market increased by 10% in 2020 despite a decline in shipments and the decline in premium products was less steep than the overall average. The reason being, there has been less economic impact on premium smartphone users. Huawei is a good example of a brand that established itself in the premium category in a relatively short space of time. To succeed in this marketplace, there needs to be a real focus and clarity on what your brand stands for and where you want it to go. A halo effect can drive the overall success for a brand. Driving customer buy-in at the mid- and low-level remains important, but solely targeting the lower- and mid-tiers will cause problems in the future. This is because you will need to buy your way into the premium market. The unintended consequence is that a brand can find itself in a low tier hole that is extremely hard to get out of.

While the market remains challenging, the brands that succeed are the ones able to adapt and respond to the changing needs of consumers. This customer-centricity is what has underpinned the success of innovative mobile companies over the past decade and will be the foundation for success whatever the next year holds.

To read the full article please visit The Drum.

Tagged , , , , , , , , , , , , ,

Real people not robots is what consumers want from retailers

Robot Shop

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. And 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.

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 find out more about our ‘Service not Sci-fi’ research please visit our Research page.

Tagged , , , , , , , , , , ,

Retail evolution not extinction

A ‘seamless customer experience’ appears to be the current obsession for retailers – mobile, desktop, in-app – a preoccupation with working out what customers want, even before they do and they’re getting pretty good at it.  But Bricks and Mortar retailers have the added pressure of the in-store customer experience and this is where it’s all change.

I’ll continue to rant about the merits of brick and mortar retail (someone has to) but not because i’m old fashioned but because statistics say we should care. According to the ONS, while online sales continue to rise, e-commerce as a percentage of total retail sales in March 2018 was still only 17.4%.

I also read an interesting stat from Murphy Research in e-marketer that 69 percent of U.S. internet users make a retail brick and mortar purchase in an average month while only 22 percent make a retail purchase online in an average month (and 9 percent buy something online for in-store pickup).  Our own research conducted last year ‘shopper influencers’ also supports this hypothesis.

The importance of brick and mortar retail to a local economy and a town’s dynamic cannot be underestimated. Fewer shops equals fewer jobs, which increases instability and deprivation.  Fortunately, traditional retail isn’t dying it’s just changing and I personally don’t think retailers are keeping up with this pace of change and consumer demands for format, feel and functionality.

So, we had a look at smart home tech one of the fastest growing consumer categories – according to EY some 59% of UK households are expected to own a smart home device by 2022 – to see how or if retailers were capitalising on this surge in interest and the results were pretty insightful.

The study found that whilst 56 percent of adults have bought the latest must-have smart home tech including WIFI controlled security cameras, heating systems and speakers most have little idea how to use what they’ve bought.  To the extent that over 30% said they regretted buying at least one or more items of smart home technology because it proved so difficult to get up and running and many said they couldn’t get all their devices to connect – which is the whole point of having a ‘smart home’.

Coupled with this, nearly a third said they never read instructions or manuals when they buy a new piece of kit and 21 percent admitted that although they have a love of tech, they are intimidated by the complexities of it.

Of the most popular smart home tech items forty five percent said the trickiest bit of kit to install was security equipment including app-controlled doorbells, motion sensors and CCTV, followed by smart lighting (28%) and smart heating system (35%).

And despite its current popularity, 30 per cent of adults that have purchased a smart speaker such as the Amazon Echo or Google Home don’t understand or use all its functionality.

Smart home tech is popular, but people don’t know how to fully utilise it to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning. Maybe the learning is lost for the majority of these customers because they chose to buy online but there’s clearly a customer need and experience that’s not being fulfilled by brick and mortar retailers.

We can talk endlessly about multi-channel integration, increased personalised experiences, fluid shopping between on and offline but ‘experience-centric’ shopping where consumers can ‘play’ and be served by a retail team that understand each product in detail and can match consumer need to product performance, is surely where brick and mortar retailers can always win?

We’ve seen huge strides in ‘experience’ shopping but there’s still a long way to go for brick and mortar retailers to make every customer visit worthwhile by fully utilising their USP – the fantastic team that meet and greet their customers every day.

Article by Daniel Todaro, Managing Director at Gekko

 

Read the full article here

Tagged , , , , , ,

All the gear, no idea: 56% of consumers don’t know how to use their smart tech

Gekko - Google Retail blog image

The results from a recent study published today by field marketing agency Gekko entitled ‘Smart Home Shopper’ reveals that more than half of Brits have purchased smart technology for their homes – but have little idea how to use it.  

The study which investigated smart home purchasing behaviour found that 56% of adults have bought the latest must-have smart home tech, including WIFI controlled security cameras, heating systems and speakers – but have been left scratching their heads when they get them home.  In fact, three in 10 consumers regretted buying at least one or more items of smart home technology because it proved so difficult to get up and running.

Nearly a third of adults say they never read instructions or manuals when they buy a new piece of kit, while 21% admit that although they have a love of tech, they are intimidated by the complexities of it. Thirteen per cent of consumers who have invested in smart home technology said they couldn’t get all their devices to connect – which is the whole point of having a ‘smart home’. More than one in 10 have used a piece of smart home tech once and never again.

The trickiest bit of kit to install was security equipment (45%), including app-controlled doorbells, motion sensors and CCTV, however 28% couldn’t get their smart lighting to work and 35% came unstuck when installing their smart heating system. Twelve per cent claimed poor WIFI connection made installation difficult and 15% confessed to lacking any technical ability.

Surprisingly and despite its current popularity, 30% of adults that have purchased a smart speaker such as the Amazon Echo or Google Home don’t understand all its functionality.

Those people that bought their smart home tech from a brick and mortar retail store did so to play, touch and feel the product (40%), get advice from sales staff (30%) and a demonstration (30%).

Daniel Todaro, MD, Gekko comments: “It’s clear from our study that smart home tech is popular, but people don’t know how to fully utilise the devices to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning.    

This is a great opportunity for retailers, especially brick and mortar to improve the customer experience within the smart home tech category by having an environment where consumers can ‘play’ and a retail team that understand each product in detail and can match consumer need to product performance. By solution selling it’s a win win for the customer and the retailer – the retailer can enrich the sale by demonstrating the whole product portfolio and functionality and the customer gets a product that’s fit for purpose. 

Traditional retailers have never been under so much financial pressure to adapt to today’s market conditions, so they must use what they’ve got to make every customer visit worthwhile.” 

Read the article at retailtimes.co.uk

 

Tagged , , , , , ,

Smart Move

smart home banner

The connected home is now reality, not a fantasy. The global market for smart-home appliances is expected to be worth $38.35 billion by 2020, and will only grow as demand and consumer interest in smart appliances increases. Shoppers will be looking for smarter appliances, but these can be balanced with regular models depending on a consumer’s desire to have some or all of their devices connected.

Some categories are clearly just jumping on the bandwagon, such as a connected SDA, which is in most cases an expensive and underused version of a regular appliance.Yet when considering the connected home from a long-term financial and time-efficiency perspective, some are valid purchases, once you’ve weighed up the cost against its potential long-term worth. Many of these domestic appliance products are, however, costly and there’s a good chance that if you could afford a kitchen and utility room full of connected devices, you’re perhaps not going to be the one cleaning or cooking and directly using the connected devices.

For retailers, the margins on smart appliances are evident, however this must be weighed up against unit sales, which may mean a lower margin than your bread-and-butter range could achieve if it were occupying the same space in your store. While the investment in ranging smart appliances may not be attractive at the moment, remember that sales in John Lewis stores in the smart-home category increased by 81 per cent year on year from 2014 to 2015. This is a growing trend that will likely spread to independent retailers, as smart appliances become increasingly more mainstream.

Having a select range of smart appliances gives your store an aspirational product and proposition for shoppers to consider when looking for a new washing machine or fridge. It’s worth considering that many shoppers looking to purchase a new appliance are doing so as a ‘distress purchase’. These consumers will be looking for a reliable device, not necessarily one with smart features.

However, a demonstration from a knowledgeable staff member connected via a tablet or smartphone, to explain the benefits of the smart system, may persuade many shoppers to purchase for the long-term benefits. These include compatibility with future smart appliances they may add to their home.

My advice is to pepper your range with connected devices, but don’t forget the mass-market appeal of traditional appliances and offer choice at all price points and functionality.

Read more at http://ertonline.co.uk/opinion/smart-move/

Tagged , , , , , , , ,

Education is key for the connected home

connected home banner

The connected home, moving beyond the early adopter stage, is now trickling into the mainstream. Research we recently undertook highlighted that 17% of Brits would like and have no concerns about installing smart devices into their home. While on the other side of the pond a study by Accenture illustrates that 69% of consumers are planning to buy a connected home device in the next five years.

The entrance of the world’s biggest tech companies into the smart home market is likely to reassure consumers and accelerate adoption. Google’s £1.9 billion acquisition of Nest at the beginning of the year demonstrated its desire to be at the forefront of smart technology while Apple recently unveiled its HomeKit – a suite of tools for controlling home appliances.

However despite the growing appetite amongst consumers for ownership of smart devices, a great number remain unconvinced or cautious, with our research also revealing that an education job is needed on their use and set-up. Backing this up, just over a third of respondents also cited third party endorsements – whether through word of mouth or in-store advice – as the most important factor when researching a purchase. The stat highlighting the emphasis brands need to place on their in-store education experience. Furthermore, education is crucial for putting consumers’ minds at rest. Certainly an important thing to consider when 23 per cent of those interviewed were concerned with the complexity of setting up smart devices and a further 39 per cent were concerned that smart devices would be too intrusive or were worried that their data would be collected and used inappropriately.

What stood out for us from the research, is that human interaction and face-to-face communication is still hugely important in the purchasing journey. Brands therefore need to capitalise on this by developing their in-store strategies with specially trained in-store brand ambassadors. Yet they must also ensure their digital and in-store offerings are unified providing a seamless customer experience.

An example of major brands doing this effectively are Currys and PC World. They are rolling out ‘smart technology areas’ across their stores to help educate consumers and enable them to interact with connected appliances. Moreover they are investing in training their employees on smart technology and launching online microsites for customers which are dedicated to smart technologies.

Another industry where connected home devices are making a huge impact is the energy sector. With the soaring costs of utility bills securing significant recent media coverage, it is perhaps no surprise that smart thermostats to control a home’s heating are the most popular devices followed closely by lighting control systems. In a tight economy, where there is consumer desire to cut back on energy bills and with winter fast approaching, utility brands must start devoting more resources to marketing smart meters.

However as with all new technology it takes time for consumers to get on board and brands must support this journey by educating people on the products available and how they enhance your life by fitting in seamlessly or by accident. In my opinion, the ultimate winners of the connected home will come down to those who can provide a balance of security and privacy, whilst being reasonably priced with useful and intuitive functionality.

 

Read more at: http://wallblog.co.uk/2014/09/02/education-is-key-for-the-connected-home/

Tagged , , ,
%d bloggers like this: