Bloomberg: Forget Amazon’s Echo and Chatbots, Consumers Want to Shop in Peace

Posted by GPShopper Press Coverage on Feb 22, 2017 10:45:22 AM
GPShopper Press Coverage

bloomberg-tech-logo.jpgExcerpt from Bloomberg article
Written by Kim Bhasin

Save the fancy tech, retailers. Shoppers are looking to buy stuff as quickly and easily as possible. 

Stores are spending lots of time and money trying out new, fancy technologies like touchscreen mirrors in changing rooms and robo-assistants out in the racks to get consumers to buy more.

Shoppers couldn’t care less.

Lowe’s Cos., the home improvement store, has a “Holoroom” that lets customers design spaces with virtual reality goggles. Nordstrom Inc. has a chatbot, an automated substitute for a human store assistant, meant to provide shoppers (both online and in-store) with gift ideas during the holidays. Rebecca Minkoff LLC, the women’s clothing retailer, has futuristic walls and mirrors that you can interact with—all in a bid to facilitate the shopping experience. 

All novel approaches, sure, but most of aren’t catching on, according to a study by mobile commerce and analytics firm GPShopper and market researcher YouGov. For example, just 18 percent of the more than 1,000 consumers polled think smart mirrors will improve their shopping experience. 

At home, virtual assistants such as Amazon’s Echo and Google’s Home aren’t exactly revolutionizing shopping either. Only 21 percent said their technology makes the buying process better from the house. 

There’s a disconnect between stores and shoppers over tech.Maya Mikhailov, a co-founder of GPShopper, works on commerce tools for stores including Crate & Barrel, Lane Bryant Inc., and Foot Locker Inc. She explained that, while retailers fawn over the latest glitzy gadget, hoping it’ll catch on as the next big thing, people just want to buy stuff as quickly and easily as possible.

“They may be very excited,” Mikhailov said of stores, “but consumers aren’t necessarily as eager as they are.”

In many cases, shoppers don’t even know that the tech exists. Most are familiar with virtual reality, but few know about things like augmented reality–the modification of a real-world environment through a digital device–such as IKEA’s technology that lets you preview furniture in your home. And few know anything about so-called “smart shelves” that can track where items are, automate pricing, and alert shoppers to their locations. Grocery store Kroger Co. began testing a version of these in 2015, and shops have experimented with such shelves since the early 2000s.

Mikhailov singled out the failure of chatbots, which many online shops now use, because the technology of parsing and learning natural language (as in chatting) isn’t quite there yet. Asos Plc, an online clothing retailer, ran into this problem in spectacular fashion last year when its customer service robo-answers became a punchline. Consumers messed with the bot on its Facebook page after it spouted utterly intelligible comments.

Read the entire article in Bloomberg.

Topics: Market Research, Press, Mobile Apps, Omnichannel Retail, Benchmarks & Statistics, Best Practices