Evolving shopping habits and behaviors are compelling retailers to increase technology spending, survey finds.
While the world and the retail industry have been rocked by the market disruption resulting from COVID-19, shoppers’ basic motivations have not changed, finds a new study from Zebra Technologies. The 13th annual Global Shopper StudyOpens a new window by Zebra that surveyed over 5,000 shoppers found that shoppers still expect the items they want to be readily available at the best value with transactions that are a breeze. However, many retailers are struggling to deliver on these expectations.
Safety has become the new standard as shoppers demand a blending of online and in-store experiences. The pandemic exposed and amplified retailers’ existing challenges but retailers’ can still meet the moment by delivering on shopper expectations with technology.
Shoppers today are savvy and flexible. If they cannot find an item in-store, they will head online or vice-versa, leveraging both channels for the most basic reasons: product availability, selection, and price. Interestingly, the study found that instant gratification, the ability to “buy it now†for in-store, and the availability of free shipping ranked lower this year, leveling shopper motivations for each channel.
Retail Technology Is No Longer Just Nice To Have but Essential as Demand Picks up
Although shoppers continue to move online and mobile, in-store shopping is still alive and necessary for retailers to provide a seamless omnichannel experience. Customers expect safe, convenient, and integrated experiences from retailers wherever and however they shop. Retailers need to invest in digitizing and optimizing their approach to meet evolving shopping habits.
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While retailers may believe they are delivering on shopper expectations, the study found that there is a disconnect – shoppers are markedly less satisfied with retailers than retail executives believe. Key pain points that emerged during the survey from returns to out of stock indicate that retailers are experiencing omnichannel strain as they struggle to meet the expectations of an on-demand world. As shoppers shift to a digital and safety-first mindset, retailers are moving to adopt innovative technology at a remarkable speed. Six in ten retailers said that the pandemic accelerated their technology spending plans.
As more shoppers use in-store solutions, self-checkout, cashless payments, and personal shopping devices are set to become the norm for brick-and-mortar retailers. 63% of the shoppers said that self-checkout solutions enhance their shopping experience. The survey also found that 47% of shoppers have used self-checkouts, and 91% say they will continue using them in the future. Out of 29% of shoppers who used cashless payments, 89% said they would continue to use it in the future too.
Clicks vs. Bricks: What Do Shoppers Prefer?
Shoppers have connected the lines between in-store and online activities with everything from click-and-collect and returning online purchases in-store to checking in-store inventory before heading online.
The study also found that mobile ordering from smartphones and tablets has experienced significant growth with 5% and 11% YoY growth, respectively. The rise in mobile shopping has been key to maintaining social distancing and adherence to local guidelines. Shoppers said they were likely to keep using mobile ordering in the future, indicating a habit that is there to stay.
How Technology Is Leading Retailers’ Response To Shoppers
In pursuit of the hybrid models shoppers expect, retail executives are pushing forward with a wide variety of technologies to meet shopper demands for faster, safe, and easier purchasing and delivery.
More than 80% of retail executives said that smart checkout, workforce management software, and prescriptive analytics were of interest to them.
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Shopping has transformed forever. Retail will continue to evolve, and its future relies heavily on the types of technologies retailers will use to meet customers’ demands. The industry has progressed rapidly over the past few months, but shoppers have indicated that the fundamentals remain the same. Safety, synchronized experiences, product availability, and accurate pricing rank as the most important things to consider, but the ways retailers deliver them will change based on the latest innovations.