A SOTI study reveals global retail struggles as consumer expectations clash with in-store reality, citing technology gaps and security concerns. (IT World Canada)
A recently released study sheds light on significant challenges facing the retail industry in Canada and globally, revealing a substantial gap between consumers' shopping expectations and the reality they encounter in-store. The study, conducted by SOTI, a Mississauga-based provider of mobile and IoT device management solutions, highlights a desire among consumers for technology improvements in their in-store shopping experiences, which current retail offerings often fail to meet.
The findings, derived from interviews with 11,000 consumers across nine markets, including Canada, the U.S., Mexico, the U.K., Germany, France, Sweden, the Netherlands, and Australia, conducted in September 2023, uncovered several key issues affecting the retail landscape.
One significant concern is security, with 76 percent of global consumers expressing apprehensions about providing personal details online or through in-store devices. This widespread lack of trust in data collection and payment technologies underscores a prevailing issue in the industry. Additionally, 35 percent of consumers worry about financial fraud, while another 35 percent express concerns about identity fraud, extending the scope of security-related challenges.
In-store challenges were also identified, including a lack of staff available to assist with self-serve machines (cited by 51 percent of users) and connectivity issues, with 35 percent of users experiencing problems with Wi-Fi when using in-store devices.
Stephanie Lopinski, Vice President of Global Marketing at SOTI, emphasized the frustration consumers feel, noting that new technology is often poorly deployed and not tailored to meet their needs. The study suggests that issues such as dying batteries in devices, difficulty using self-serve checkouts, and a lack of staff to address technical problems contribute to consumer dissatisfaction, leading to cart abandonment and frustration.
Lopinski stressed the need for retailers to focus on managing and optimizing their technology investments to enhance consumer satisfaction. Shash Anand, Senior Vice President of Product Strategy at SOTI, highlighted the crucial role of artificial intelligence (AI) in resolving these issues. He emphasized that AI-driven diagnostic intelligence and proactive support solutions empower retailers to identify and address problems before they impact the consumer experience.
Looking forward, Anand suggested that the industry's focus over the next three years should be on building trust, safeguarding data, and providing seamless experiences that bridge the gap between online and in-store shopping. The study also revealed that Canadian shoppers, mirroring global trends, now demand real-time information, efficient product availability, and rapid delivery both in-store and online.
The report indicates that 41 percent of consumers would seek alternative options if delivery or pick-up of an item takes more than two days. Furthermore, 77 percent expect real-time updates on the status of their orders, underscoring the importance of efficient supply chain visibility.
In conclusion, the study emphasizes the need for retailers to address the gaps between consumer expectations and the reality of their in-store experiences. As the retail landscape continues to evolve, managing, monitoring, and maintaining technology solutions become imperative for fostering brand loyalty and driving sales. SOTI recommends that retailers focus on intelligence offerings to visualize and optimize their operations, both in-store and online, in real-time.
