A growing dissatisfaction amongst consumer digital retail experiences shows a lack of innovation in the sector.
New research from PYMNTS, a retail, fintech and financial services news platform, showed 150 brands were dissatisfied with existing tech innovations. In a study titled “Big Retail’s Innovation Mandate: Convenience and Personalization,” produced in collaboration with ACI Worldwide, over 300 UK and US retailers were interviewed.
To be able to participate in the research, retailers and merchants were required to have a minimum of 50 store locations and in the US a revenue of 1 billion dollars, comparable to turnover in the UK of 100 million pounds.
Half of the merchants were positive of their organisation's digital progress, with an equal number stating they had not done enough. Furthermore, over 70 percent of retail executives in both US and UK said digital-first tools are crucial to consumer loyalty.
PYMTNS said “basic digital tools”, which include apps, touchless QR and barcode scanners, coupons and rewards, are well integrated into retail operations, with just about half of those surveyed saying their current tools and features deliver on these experiences.
53 percent of general retailers, which include fashion companies, said their current digital tools are sufficiently advanced for the shopping experiences they need to offer.
“Retailers that use more digital tools enjoy them and the customer experiences they help create,” the study stated, with research finding that “three-quarters of retailers that currently use the most digital tools — seven or more — were satisfied with the digital features employed and the customer experiences created.”
Interestingly, only 17 percent of those using the fewest digital tools (three or less) are satisfied with the shopping experience they are currently offering, said PYMNTS.