Shoppers are
warming to beacons and virtual reality.
The majority of consumers are open to location-based technology as long as it improves their shopping experience, according to a new study.
In
the no-surprise department, coupons are viewed as the biggest incentive, based on a survey of 1,400 U.S. consumers focused on shopping habits and emerging retail technology conducted by Walker
Sands.
While a third (33%) of consumers aren’t open to beacons or any location-based technology in stores, 67% say in-store tracking could improve their in-store shopping experience.
Here’s the rundown of location technology that consumers say would improve their shopping experience:
- 52% -- Coupons
- 36% -- Product content and reviews
- 30%
-- Indoor mapping with product locations
The big stumbling block for more consumers opting in to beaconing to receive in-store notifications is privacy. Interestingly, downloading a
retailer’s app is at the bottom of the list of issues that stop shoppers from using beacon-triggered offers.
This has been a persistent pain for most entities using beacons, since in
addition to Bluetooth being turned on, a certain app associated with the beacons being used has to be on the shopper’s phone.
And then the consumer has to agree to receive messages as
they shop. Here’s what’s preventing consumers from agreeing to receive in-store messages as they shop:
- 64% -- Privacy concerns
- 64% -- Fear of message overload
- 55% -- Security concerns
- 46% -- Creepiness factor
- 39% -- Hassle of downloading retail app
A major finding in the study is the number of people who say they have
been beaconed in a store.
Six percent of consumers say they have been beaconed for in-store tracking, according to Walker Sands. That translates to roughly 19 million consumers.
And
beacons are not the only IoT technology retailers should be looking at.
The majority (55%) of consumers expect that virtual reality will impact their buying decisions in one way another.
A third (33%) of consumers would be more likely to shop with retailers that offer a VR experience and 24% would be more likely to buy more online from one. A potential downside for retailers is
that 17% would be less likely to visit a physical retail store.
The top product categories to be impacted by virtual reality shopping are clothing and apparel, electronics and household
goods.
The categories to be least affected by VR are food and groceries, consumer packaged goods and pet supplies.
Whether by beacons or some other means, shoppers are learning that
they are being tracked in stores. The value proposition is next.
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Looking for insights into
wearables? Come hear Chuck Fletcher of Razorfish, Ben Gaddis of T3 and Marley Kaplan of Kinetic Worldwide at the MediaPost
IoT Marketing Forum
Aug. 3 in New York.
Check it out the agenda here