Technical glitches have big impact on in-store experience—and return visits

6/27/2018
Shoppers have little patience for non-functioning WiFi and other in-store technologies that fail to deliver as promised.

Technology successes and failures are having a big impact on whether consumers return to a store or restaurant. According to a report by software and services provider Boomtown, 46% of consumers say that positive experiences due to well-functioning technology lead them to greater brand confidence and more frequent visits to the business (44%). Conversely, negative experiences due to malfunctioning technology result in a decline in brand confidence and less frequent visits to the business for 28% of consumers.

Consumers who frequent chain establishments over smaller businesses name technology as one of the key aspects of their in-store experience, with the most important tech features being a range of digital payment options (critical to 57% of consumers), online ordering & local pick up capabilities (50%), self-checkout options (49%), and such other digital offerings as in-store WiFi and real-time order information.

But the report also found that delivering a technology-driven customer experience can be fraught with risk. According to the survey, over 80% of consumers have encountered technical issues at retail stores and restaurants, and the consequences of a failed experience can be dire (including complaints, as well as a decline in business and brand reputation).

Other key findings from “The Digital Forward Customer Experience: New Expectations and Obstacles for Today’s Storefront” report include:

• After a positive experience involving technology, 63% of consumers will complement the location owner or refer the location to others.

• Over 80% of consumers have experienced a technical glitch (such as failed payment processing or non-functional Wi-Fi) as they shopped or dined; nearly 60% of consumers have encountered these technical glitches multiple times.

• Nearly 60% have encountered slow or malfunctioning electronic payment systems.

• One-in-three respondents (36%) has encountered faulty or unavailable WiFi or incorrect information online.

“These findings confirm that the digital transformation of the consumer experience is fully underway and that businesses - from small, regional shops or restaurants to national, consumer-facing chains - must invest in their technology to court and keep consumers,” said Alfred ‘Chip’ Kahn IV, CEO and founder of Boomtown. “But, investment in technology-driven customer experiences creates complexity and risk, offering the opportunity to please the customer but potentially imperiling customer relationships if the promise falls short.”

Respondents identified a strong preference for brands that make widespread use of advanced, reliable and intuitive technology. These brands, who are often called ‘digital forward’ and include Walmart, Target, Best Buy, Shake Shack, and Chipotle among others, are gaining the business and loyalty of consumers, the report said.
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