Every year, the retail industry generates hype about the next great technology that’s going to change the customer experience forever. Beacons, RFID, in-store mirrors and recently chatbots have all had their turn as the “next big thing.” And while many of these technologies eventually do enhance the shopping experience in a variety of ways, it’s rare that the practical reality equals the initial promise.
The RTP team discusses whether technologies such as Augmented Reality, Visual Search or Artificial Intelligence will improve (or are improving already) shopping experiences. Additionally, the team highlights what they think is the most exciting technology that will shape the retail customer experience.
Debbie Hauss, Editor-in-Chief: Right now I think the technology retailers need to pay the most attention to is Artificial Intelligence (AI). Siri and the like are creating a scenario in which the technology is making the suggestions and providing the information to the shopper. Retailers and brands need to figure out how to get the right information into the virtual hands of these AI tools, so when a shopper asks Siri where to find the best pasta sauce or running shoes, Siri has the information to potentially suggest their brand. Industry analyst Greg Girard recently spoke about the potential of AI at the Retail Innovation Conference, laying out a strong argument for retailers to invest in AI technology today. Also during the NRF Big Show in January, Girard named a number of retail solution providers that are ahead of the AI game.
Adam Blair, Executive Editor: By nature I’m somewhat suspicious about the potential of new gizmos to truly improve the shopping experience. However, the convergence of mobile’s growth and the increasing importance of visual communication has me singing a different tune. To trot out an old cliché, seeing is believing. Augmented reality that realistically shows how a new couch, lamp or desk will look in a shopper’s own living room could transform furniture retailing, turning it into a mobile-first proposition for a large swath of consumers. Visual search will be a boon to shoppers who see a “must-have” outfit or item on InstaSnapBook — and an even bigger boon to the brands that figure out how to channel those visual searches to their sites.
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Alicia Esposito, Content Strategist: All of the aforementioned technologies — AI, visual search and augmented reality — give retailers the opportunity to add more context to their brands and products. I could go on and on about the potential of all of these technologies, but I feel like visual search currently is experiencing the most traction because there are so many potential use cases. For example, Neiman Marcus added visual search capabilities from Slyce to its app, allowing consumers to snap photos of outfits or home goods, and then receive a “matching” product from the Neiman Marcus e-Commerce experience. The retailer is taking consumers’ real-life experiences and connecting them seamlessly to its inventory. Rather than typing in a slew of keywords and hoping they find a product, consumers get instant access to the most similar products. Urban Outfitters has rolled out a similar capability. I feel like the visual search movement speaks to consumers’ demands for immediate, mobile access to information. It also aligns with the fact that consumers, especially Millennials and Gen Z’ers, want brands to integrate their products into the context of their lives via more authentic imagery and browsing experiences, rather than looking at staged photo shoots and product pages.
Klaudia Tirico, Features Editor: So many new technologies promise to help retailers take their businesses to the next level, but it’s up to the retailer to choose what is right for their business. Things like augmented reality and visual search, in my opinion, are “nice to haves” versus “must-haves” in terms of improving the customer shopping experience. Artificial intelligence, on the other hand, has potential to improve the way retailers interact with their customers, resulting in better shopping experiences. With AI, brands can get a closer look into consumer behaviors, wants, needs, etc. An exciting technology that has come out of AI is virtual chatbots, which have the ability to boost sales and conversions and drive customer loyalty. Retailers such as Nordstrom, Sephora and 1-800-Flowers.com have leveraged this technology to share product recommendations, process orders and send shipping information. Chatbots can streamline the buying journey and provide customer service at the customer’s leisure, without having to hop on the phone and wait on hold until a representative is available. Again, new technologies can be exciting, but brands and retailers shouldn’t dive right in just because there’s a shiny new toy in front of them. Retailers must think about their objectives and the challenges they are trying to solve before opening their wallets.
Glenn Taylor, Senior Editor: From a practicality standpoint, I think machine learning takes the cake for most applicable technology in retail going ahead. There are certainly many next-gen technologies that have visually aided shoppers as they make decisions in-store, for example as seen in the New York stores of ALDO and Rebecca Minkoff. But many retailers showcasing these technologies have yet to scale them throughout all their stores. Although machine learning is still in its emerging stage, the nature of the technology enables it to continue adapting to consumer queries and natural language — essentially getting smarter over time. As more retailers adopt machine learning solutions for both on-site search and product recommendations, they can further understand consumer shopping tendencies and cater to them in a more convenient, faster fashion. Given how important time-to-checkout has become even on the e-Commerce side, retailers should take the development of machine learning seriously in 2017 and beyond.
