Commentary

Technology Encroaching On Personal Lives

In the last few years technology has undergone a transformation as subtle as it has been revolutionary. Until recently, technology was a tool: something that people consciously picked up or switched on to achieve a particular purpose. Today technology is increasingly embedded in every aspect of our lives. From wearable devices to chatbots, connected appliances to autonomous vehicles, we live in a world where technology is becoming less a tool, and more an integral, underlying network powering everything we do, says a new report from DigitalCommerce360.

This revolution’s unifying characteristic is the gradual encroachment of technology into traditional areas of human action and autonomy. These technologies promise a huge range of transformational benefits for businesses and consumers alike, but it’s important to understand how people feel about the rise of the machines and the impact it will have on their daily lives, our privacy and autonomy.

In the summer of 2017, Worldpay commissioned in-depth research among more than 20,000 people across ten countries to find out how they feel about the advancements in connected devices and, specifically, how comfortable they are with its implications for security, privacy, & payments.

Overall, consumers welcome the convenience that connected devices are bringing to their lives, but the research uncovered some serious concerns over trust, particularly in the way data is harvested. The benefits of the connected future will only be secured if industry can allay consumers’ legitimate concerns, and assure them that smart technology will add value to their lives, without having to sacrifice their security or autonomy.

It often takes years for new technology to gain widespread familiarity, says the report, but the concept of connected devices has swiftly permeated the public’s consciousness. Worldpay’s research shows that 34% of people are very familiar with the term ‘IoT’ and its implications for everyday life. In fact, every one of the more than 20,000 people polled had some understanding of the concept.

Globally, around two in five consumers have used connected home devices or services such as Amazon Dot or Nest thermostats (44%), or virtual assistants like Alexa or Google Now (41%).

One of the defining characteristics of connected devices, says the report, is their ability to perform actions without direct input from their human owners, such as making purchases. Overall, 46% of consumers say they are comfortable with a home device ordering things on their behalf without asking permission; however, 35% said that this makes them feel uncomfortable.

In the rush to implement new connected devices and smart services, it’s easy to forget that their continued acceptance depends on allaying consumers’ concerns. Organizations seeking to bring new connected products to market must therefore understand and address these concerns.

The widespread adoption of connected devices shows that consumers are comfortable with the benefits they bring. 49% say that the convenience brought by smart devices add to their quality of life, compared to less than 25% who disagree.

These findings illustrate the potential reputational risk to manufacturers and service providers if they cannot achieve the right balance between convenience and user control, especially when it comes to purchasing decisions.

The future of retail might well be in the home, says the report. Connected home technologies and personal assistants such as Alexa and automated chatbots are making shopping experiences more convenient than ever before. Technology in the home provides a new path to purchase, but can also automate the shopping process. These automations provide benefits to shoppers allowing them to have access to sales assistant support in the home and smart recommendations based on their prior buying habits, ensuring they find what they are looking for first time round to reduce returns over time.

But although 46% of shoppers say they’d be comfortable with devices ordering on their behalf, 50% say they want fixed limits for how much these devices can spend, and 59% say they want to approve each purchase before it’s made. While there is an opportunity for retailers to target shoppers in their home, they must factor in consumer concerns over the limits and liabilities of automated purchasing.

However, shoppers are still spooked by the idea of their data being collected and used without their consent. 55% of shoppers worldwide say that they wouldn’t like connected devices to gather data on them in their own home, and 53% say they don’t like the idea of a machine anticipating their needs. Clearly, retailers have some work to do to show customers the real value they could get out of automation, to convince them to share their data.

We know that consumers crave convenience and friction-free shopping but retailers must communicate not only the benefits that these technologies will bring to consumers, but also provide unambiguous controls over what data is collected and how payments are made to make them feel comfortable. The study found that consumer concerns can be overcome by communicating clear data policies and enabling payment experiences with the simplest method of approval opposed to completely automated “invisible” payments. This will define the foreseeable future for connected retail.

Concluding, the report points out that connected technologies are disrupting long-established industries, transforming others beyond recognition, and are creating a multitude of new, often experimental business models. Whether these are sustainable in the long-term depends, to a large extent, on whether they can balance consumers’ demands for both convenience and peace of mind.

To access the complete report, please visit here.

 

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