Retail Tech Isn’t Keeping Up With Customer Expectations, SOTI Research Finds
Australian consumers are seeking value and reassurance, with 87% concerned about data security and 86% tightening budgets
SOTI, a proven innovator and industry leader for simplifying business mobility solutions, launched its latest annual global research, “Retail Tech Assessment: Opportunities for Enhanced Consumer Experiences,” which revealed Australian consumers are increasingly making shopping decisions based on security, trust and the quality of their digital experience. The findings reveal that while retailers are investing in technology, many still fall short of delivering truly personalised and immersive interactions.
Retailers Need to Enhance Consumer Engagement with Technology
The report found that there is progress to be made in enhancing consumer shopping experiences with the technology currently available. Consumers use retail apps for convenience, with 55% using them for exclusive offers, savings and points, and 53% enjoying benefits such as faster checkout. However, engagement is not growing at the pace retailers would expect, and further incentives may be needed to encourage deeper use of digital touchpoints. Additionally, greater emphasis could be placed on augmented reality (AR) and visualisation to create more immersive experiences.
“Most of the technology does exist, but it is not being leveraged properly. Consumers want experiences that feel more relevant and forward-thinking than what they are receiving today,” said Michael Dyson, VP of Sales APAC at SOTI. “Engagement and loyalty can deepen as this technology becomes more central to the retail experience. Secure and connected devices and apps are the starting point for building brand trust.”
Consumers Are More Cost-Conscious Than Ever Amid Economic Uncertainty
Rising economic pressures are forcing Australian consumers to prioritise value, convenience and local purchasing, as 33% are now checking product origin or choosing to buy domestically made products. Furthermore, 86% are taking cost-cutting measures to adapt to changing economic conditions and 63% say economic factors have influenced their ability to purchase their usual items in the past 12 months.
“Consumers now know exactly when and where to find the best value, and they’re using digital tools at every step of the buying journey,” added Dyson. “Retailers are working hard to meet expectations for smooth, connected experiences, yet issues with real-time tracking and fulfilment highlight that some foundational supply chain processes still need strengthening.”
Security and Privacy Are Growing Concerns
While 55% of consumers want to see more technology-enhanced shopping, research found that security and trust are critical. In fact, 87% of consumers are concerned about data privacy or security issues when shopping online or in-store, and 69% think twice before shopping with a retailer that has suffered a cyberattack. Much of this sentiment stems from the fact that 42% of consumers have been victims of retail-related fraud.
“Finding the right balance between smarter, tech-enabled shopping and protecting consumer privacy has become critical,” Dyson said. “Shoppers are open to personalisation, provided they trust how their data is managed. Maintaining that trust requires transparency and robust security, especially at a time when major brands are facing increasing cyber threats.”
SOTI’s latest report, “Retail Tech Assessment: Opportunities for Enhanced Consumer Experiences,” can be downloaded here.
