News • 12.05.2022

From smart vending to eco-friendly deliveries

New report unveils consumer demand for IoT-enabled, next level retail experiences

A vending machine with different lunch boxes
Source: Falco Negenmann / Unsplash

Wireless Logic research shows British consumers increasingly want ‘Everything Now’; Significant opportunity for service providers to recommend the right IoT solutions backed by ultra-resilient cellular connectivity to help retailers stay competitive.

Wireless Logic Group, an IoT connectivity platform provider, has announced the results of a new Censuswide report into the ongoing digitisation of consumer behaviour and adoption of next level retail experiences. In particular, the report examines how an increase in food deliveries, omnichannel shopping and cashless payments is currently driving the need for resilient online connections across the retail sector.

Among the findings of the report is a clear desire for ‘Everything Now’, where goods and services are ordered and delivered quickly and conveniently. In addition, the results point to rising adoption of smart digital vending, as well as demand for traceability and sustainability of deliveries.

By bringing resilience to their IoT applications, retailers can innovate and thrive ahead of their competition. This report focuses on three distinct use cases – point-of-sale (POS) terminals, vending and last mile delivery – where IoT is making a real impact on the retail experience in future-proofing the sector.

Point-of-sale (POS) terminals must be available, reliable, and secure

PoS technology is critical in today’s retail market. Credit and debit card transactions have become the de facto choice of payment, with 38 per cent of respondents citing contactless/chip and pin as the payment method they use most often. For retailers looking to avoid churn, this requires immediate connectivity to ensure customers can always pay, without delay. When asked what they would do if their preferred payment method was unavailable online, one in five respondents would find an alternative retailer. When shopping instore, 21 per cent would blame the retailer if a card machine was available but it was not working when payment was attempted.

Security is also front of mind. Almost two thirds (58 per cent) of respondents are concerned about the security of their personal details or payment information when making an electronic payment. 37 per cent believe it is the retailer’s responsibility to ensure the security of the transaction.

Vending machines are growing in popularity for certain product categories

Vending, and automated retail in particular, is one of the fastest growing areas of retail today. Accelerated by the pandemic, vending machines provide an unattended retail solution that works across a diverse range of businesses and environments. The research reflects this upward trend, with almost half (46 per cent) of consumers agreeing that there should be more options to purchase goods through vending machines in the UK. When asked why, respondents cited convenience (53 per cent), accessibility (45 per cent) and friendlier operating hours (33 per cent).

Airports, hotels, and hospitality venues are popular locations for vending machine use, with the average consumer using one five times in the last three months, at one or more of these locations. Magazines and newspapers (61 per cent), non-alcoholic drinks (74 per cent), and hot food (48 per cent) are the categories consumers are most willing to purchase from vending machines. That said, alcohol (48 per cent) and vaping products (31 per cent) were also popular responses.

“There has been much debate over how the retail sector can both survive and thrive in a post-pandemic world – and businesses and consumers have had to change the way that they interact,” said Jason Vincent, Innovation & Software Director at Aeguana, an award‐winning company specialising in automated retail technology and a Wireless Logic customer. “Given our focus on unique touchless vending technology, it is welcome to see increasing consumer demand for vending in this report. Digital vending machines, like all point‐of‐sale terminals that process cashless payments, depend on resilient, continuous connectivity to take payments and provide a seamless customer experience. So, this must be a primary consideration for organisations. Without it, there is a high risk of revenue loss should customers be unable to pay using their preferred method or unable to use other on-screen services such as redeeming a discount code, and ultimately taking their business elsewhere.”

Timeliness, traceability, and sustainability emerge as key demands for last mile delivery

The transport and logistics sector is key to keeping the retail and ecommerce sectors running efficiently, particularly as consumers express higher expectations of last mile service. When ordering takeaway food, consumers are willing to wait an average of 35.14 minutes from order to delivery, with just 0.57 per cent prepared to wait longer than an hour.

Traceability is also important for brand reputation, as a third (33 per cent) would think the retailer is more likely to lose the product if delivery tracking information was not available, and a quarter (25 per cent) would think the retailer was not legitimate. The importance of delivery tracking information seems to rise with purchase value and perishability, as consumers are most concerned with the traceability of electronics (87 per cent), white goods (86 per cent), and food and perishables (86 per cent).

Lastly, more than half (52 per cent) would pay more for an item if the delivery options were more sustainable. This includes green delivery slots, bicycle deliveries, click and collect, escooters or electric vehicles and delivery robots. This number rises to 61 per cent in the 16-34 age group.

Consumers increasingly demand shorter lead times

“Timely deliveries depend on reliable connectivity to function – there are so many online interactions between delivery drivers and retailers to arrange and confirm pick-up and drop off details,” said Ian O’Connor, Managing Director at Eskuta Limited, a Wireless Logic customer. “It’s a seamless operation made possible by the rapid exchange of up-to-date information. Any failure in communication could result in missed orders, unsuccessful deliveries or frustrated customers chasing updates. Such outcomes make for bad customer experiences, potentially lost revenue, and long-term reputational damage, which can all be terminal in today’s competitive retail landscape. The survey reflects this, as consumers are increasingly demanding shorter lead times – and GPS tracking across secure, reliable cellular networks is critical. And, if a delivery experience is poor, eight in ten respondents would be wary of making future purchases with that retailer or blacklist them altogether.”

“At Wireless Logic, we understand the trends shaping today’s retail sector,” said Oliver Tucker, Co-Founder and CEO, Wireless Logic. “Our ultra-high availability SIMs are built for the IoT and can support food order and delivery services, cashless payments, parcel lockers, vending machines and more. When service providers and OEMs partner with us, we help them to become more consultative in their approach and strategic in their solution recommendations to their retail customers.”

“The research is clear – and to meet these high customer expectations of speed and simplicity, retailers need resilient and secure cellular connectivity for their online services. Without it, they may lose orders and revenue or even suffer damage to brand reputation.”

The full report can be found here.

Source: Wireless Logic

related articles:

popular articles:

Thumbnail-Photo: Out of Stock in Retail and innovative solutions to avoid them...
07.11.2023   #brick and mortar retail #customer satisfaction

Out of Stock in Retail and innovative solutions to avoid them

Due to various events, the availability of goods in retail will be increasingly restricted from 2022, with the result that customers cannot find in food retail the products they wish to buy, because those products are sold out, are temporarily ...

Thumbnail-Photo: Tesco to introduce new scan-free technology on self-service tills at...
03.01.2024   #brick and mortar retail #Tech in Retail

Tesco to introduce new scan-free technology on self-service tills at GetGo store

Seamless Shopping Revolution: Tesco Tests Scan-Free Technology in London

Tesco is trialling an exciting new technology innovation that means customers don’t need to scan their items ...

Thumbnail-Photo: EuroCIS 2024: Go beyond today!
16.10.2023   #retail #Tech in Retail

EuroCIS 2024: Go beyond today!

27 to 29 February 2024 will see the Who’s Who of Europe’s retail technology sector meet in Düsseldorf

Go beyond today! EuroCIS at the end of February will once again show solutions and products for the retail of the future @Messe DüsseldorfIn late February, numerous companies will again exhibit solutions and products for retailers to shape and ...

Thumbnail-Photo: Ask the Bot: generative AI in retail
02.01.2024   #Tech in Retail #food retail

Ask the Bot: generative AI in retail

Revolution in retail: the era of generative AI and AI bots

They are able to analyse data, write product descriptions, answer shoppers’ questions or write codes...

Thumbnail-Photo: Trigo and Netto Announce Autonomous Supermarket with Real-Time Receipt...
24.01.2024   #Tech in Retail #artificial intelligence

Trigo and Netto Announce Autonomous Supermarket with Real-Time Receipt Capability.

‘Final step’ in frictionless shopping drives trust by enabling consumers to view their receipts BEFORE leaving the store
Full size 800m2 grocery supermarket powered by computer vision AI is Europe’s largest retrofitted frictionless store

Trigo, a leading provider of AI computer vision technology that transforms traditional brick-and-mortar retail outlets into digital smart stores, and discount supermarket chain Netto Marken-Discount (also known as Netto), have partnered to launch ...

Thumbnail-Photo: The global state of autonomous stores
18.12.2023   #Tech in Retail #self-checkout systems

The global state of autonomous stores

The stores are located in various retail segments such as food retail, fashion, electronics, convenience stores and fast food.

In a highly competitive global retail landscape, autonomous stores are an emerging force that addresses changing consumer behaviors, reduces operational costs, improves profitability, and powers revenue growth strategies. Advancements in autonomous ...

Thumbnail-Photo: EuroCIS 2024 - technology special
11.12.2023   #online trading #e-commerce

EuroCIS 2024 - technology special

The latest technology solutions and trends for you and the retail sector

At EuroCIS 2022 from February 27 to 29, 2024, the Leading Trade Fair for Retail Technology, we will be looking at all the important and current topics relating to technology in retail: AI and Machine Learning, Payment, Connected Retail, Seamless Store and Smart Energy Management and many more.

Thumbnail-Photo: Nedap teams with Foot Locker to extend RFID project...
05.10.2023   #omnichannel #software applications

Nedap teams with Foot Locker to extend RFID project

Foot Locker successfully matches supply and demand in newly opened stores in Eastern Europe using RFID technology

Nedap the global leader in RFID solutions, announces that multi-brand sports fashion and apparel retailer Foot Locker has successfully extended Nedap iD Cloud to its new, Eastern European stores. The objective is to offer the best possible ...

Thumbnail-Photo: SES-imagotag becomes VusionGroup
29.01.2024   #software applications #artificial intelligence

SES-imagotag becomes VusionGroup

A new identity highlighting the broader portfolio of innovative solutions
developed by the Group to solve the major challenges of physical commerce

SES-imagotag (Euronext: SESL, FR0010282822), the global leader in digital solutions for physical commerce, today announced that it has changed its name to VusionGroup. This new name embodies the various product lines and solutions that have enhanced ...

Thumbnail-Photo: Payment as a success factor: more than just paying...
15.01.2024   #Tech in Retail #payment systems

Payment as a success factor: more than just paying

Flashback to 1994: databases and ERP systems, first commercial websites, mobile phones with colour displays, CD-ROMs, Java as a programming language ...

Supplier

VusionGroup SA
VusionGroup SA
55 place Nelson Mandela
90000 Nanterre
Captana GmbH
Captana GmbH
Bundesstraße 16
77955 Ettenheim
Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Ernst-Dietrich-Platz 2
40882 Ratingen
Innovative Technology Ltd.
Innovative Technology Ltd.
Innovative Business Park
OL1 4EQ Oldham
REMIRA Group GmbH
REMIRA Group GmbH
Phoenixplatz 2
44263 Dortmund