Technology Improves Customer Experience: Study
Guest-facing technology successes and failures are seriously impacting whether consumers return to a restaurant.
According to research from 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 for 44%. Malfunctioning technology results in a decline in brand confidence and less frequent visits to the business for 28% of consumers, the report states.Boomtown, a provider of software and services for technology support, issued the report, “The Digital Forward Customer Experience: New Expectations and Obstacles for Today’s Storefront,” which examines how tech savvy restaurant chains are transforming the experiences and expectations of consumers. Boomtown’s report is based on a survey of 1,033 U.S. consumers.
Respondents identified a strong preference for brands that make widespread use of advanced, reliable and intuitive technology. These brands, which are often called ‘digital forward’ include Shake Shack, Chipotle, Walmart, Target, Best Buy and others, and are gaining the business and loyalty of today’s consumers.
According to the Boomtown report, consumers who frequent large chain establishments over smaller businesses name technology as one of the key aspects of their in-store experience, highlighting a range of digital payment options (critical to 57% of consumers), online ordering & local pick up capabilities (important to 50%), self check-out options (important to 49%), and other digital offerings like in-store Wi-Fi 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 research include:
- When shopping or eating at large chains, 57% of consumers prioritize a wide range of reliable digital payment options as central to their overall experience
- After a positive experience involving technology, 63% of consumers will compliment the location owner or refer the location to others
- For 56% of consumers, a negative technology experience will translate to filing an official complaint
- Over 80% of consumers have had at least one encounter with 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 has encountered faulty or unavailable Wi-Fi or incorrect information online (36%)