BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Shoppers Will Interact With Robots, But Do Have Limits

Following
This article is more than 3 years old.

Machines comb mounds of data to personalize engagements. Augmented and virtual realities replicate the physical experience online. Robots streamline fulfillment operations in warehouses. Technology is more embedded in commerce than ever before and will continue to be further integrated. However, consumers’ comfort levels with new technologies vary depending on the application and its perceived level of intrusiveness.

Consumers are open to robots aiding their shopping journey and even making their next meal but draw the line at a machine spending their money without their involvement, according to Euromonitor International’s 2020 Digital Consumer Survey of 20,000 global consumers conducted from late March to early April. Specifically, 45% of connected consumers are comfortable with robots guiding them to products within a store aisle while only 27% are comfortable with companies automatically reordering products on their behalf.

Robots, in particular, have been in the spotlight during the COVID-19 pandemic as businesses attempt to eliminate human-to-human contact to reduce the spread of the virus. Robots can be leveraged across the entire retail experience from packing items in warehouses to guiding consumers in stores to delivering products to homes. Although still a relatively new concept, 44% of connected consumers say they would be comfortable receiving a delivery directly via drone or robot, according to Euromonitor International’s 2020 Digital Consumer Survey.

In response to the pandemic, companies worldwide have been ramping up such capabilities. For example, robot delivery service Starship Technologies added grocery delivery services in several U.S. cities amid the outbreak. Chinese delivery app Meituan Dianping started using autonomous vehicles to deliver grocery orders to customers in Beijing in February. Using robots for deliveries is one of the more extreme extensions of no-touch or contactless retail, which removes humans from the interaction entirely.

Companies are only scratching the surface in terms of potential applications for robotics in commerce. Only 20% of industry respondents surveyed in November by Euromonitor International said robotics were a key factor influencing digital commerce in the past year. In fact, 44% expect robotics/automation to impact business in the next five years compared to 68% who view artificial intelligence as the most impactful tech.

While that aforementioned survey speaks to business’ interest and investment in different technologies, Euromonitor International’s 2020 Digital Consumer Survey tracks the ever-expanding role of technology across commerce. In general, consumers are nearly twice as comfortable with robots being involved in the discovery phase compared to executing purchases on their behalf. This sentiment runs counter to some of the strategies consumer-facing companies are implementing.

For the last five years, there have been conversations across industries, including durable goods, fast-moving consumer goods, retailing and payments, about the potential to automate some purchase decisions under the guise of consumer convenience. This is becoming a more feasible proposition as society moves deeper into the Internet of Things (IoT) era. Internet-connected goods and smart devices, from cars to refrigerators to speakers, are able to offer more robust services. Euromonitor International estimates that consumers worldwide spent $15 billion through those devices in 2019. Approximately one-third of industry respondents expect IoT to drive the automation of consumer purchase decisions in the next five years, according to Euromonitor International. Automatic order replenishment is possible because technology can be embedded into devices like appliances to measure product consumption.

Amazon’s strategy best illustrates this intent to capture on the shift toward passive commerce. The e-commerce behemoth first enabled shoppers to order consumables with a tap of a button through its Amazon Dash service. While the physical Amazon Dash button has been discontinued, it gave way to the Amazon Dash Replenishment Service, which is a platform that manufacturers can embed into their hardware. The device or appliance measures product usage, from printer ink to laundry detergent, and automatically reorders when supply is low. GE Appliances is an example of a company that has integrated its connected product lines with this service, which Amazon touts as a “hands-free replenishment process.”

Undoubtedly, technology will forever be a part of the commerce transaction, given the convenience that technology provides companies and consumers. In this fast-paced, always-on world, time emerged as a crucial commodity for consumers with some even willing to spend money in order to save time. As such, technology was deployed as a tool to manage and simplify busy lifestyles. Machines will play a role in shaping the future of commerce, but the key to success is ensuring the application is not overly intrusive.

Consumers may be open to machines playing a role across the entire path to purchase, but ultimately, they want a say in the final purchase decision. Consumers will likely embrace notifications from their smart devices when products need to be reordered due to the added convenience. That being said, companies offering such a service need to do so in the form of a gentle reminder to the consumer as opposed to executing the purchase without human involvement.

Follow me on Twitter or LinkedInCheck out my website