The Rise of Robots in Retail

We’ve all been there. Despite planning accordingly, you're running late for a flight and find yourself frantically making your way through the terminal. The worst part: You haven't eaten all day. 

It seems like all the restaurant lines are extremely long until one kiosk stands out in the corner. In just a few minutes you quickly order, pay, grab your food, and make it to your flight on time -- with a few minutes to spare! 

In this episode of the Retail Customer Experience Trends Podcast Series, host Rich Bongiorno, Senior Managing Director at J.D. Power, sits down with Cody Wright and Young Han, J.D. Power Consults specializing in Retail, to discuss key retail technology trends, including the rise and reliance on seamless customer experiences, like kiosk technology. 

What are the major retail tech trends we’re seeing this year?

• There is a growing level of dependence on kiosk technology. Not only do these devices create a frictionless experience for customers but there’s also an added level of customization. When using a kiosk to place a McDonald’s order, for example, customers can make as many customizations to their meal as they like. There’s no limit to how many choices a customer can add to their order, giving the customer the opportunity to try something new. 
• Cellphones are becoming the new “kiosks.” Instead of having a physical kiosk within a store or food chain, many brands want to funnel customer traffic through their app. With this method of ordering, brands like Chipotle are able to offer rewards and incentives to foster brand loyalty and advocacy. 

Why is there an increasing reliance on technology during the in-person retail experience? 

The growth of technology in retail is inevitable for several reasons. For one, there are simply fewer employees available in the service industry. With the next generation being much smaller than the previous, and Boomers’ growing need for hospital care and medical attention, workers are increasingly drawn to higher wages available in the healthcare industry. Companies are forced to come up with ways to meet demand with a limited labor force. The answer: automation. 

Kiosks are just the start of this shift to an automated experience that reduces the need for human interaction. Kiosks not only offer unlimited customization for consumers but there’s also a level of consistency and quality in the delivery of the products/services ordered.

How do we see this technology advancing?

Numerous robotic companies are emerging and investment in this field is on the rise. The limited labor force is making these advancements happen faster. Han believes we need to look at which verticals are going to adopt this technology first: 

 “Which vertical do we think consumers are going to accept the fastest first? […] I think that’s really the big question we need to ask when we think about robotics, it’s like, is it coffee that customers are going to feel more comfortable getting from a robot? Or is it a hamburger? Is it a pizza? Is it insurance? [...] No matter how you approach it, it’s still a very fringe group of people that are accepting of getting things from a robot unless you live in Japan. But the mass community here in the states is not very open to it yet. I think the big question is, what is that product or vertical that’s going to be able to capture that market and get that open adoption? And then once you have that, I think it’ll be much easier for a company to dominate multiple verticals.” 

The integration of AI into the retail environment 

Robots are one method for providing a more advanced retail experience for customers, and with services like ChatGPT causing a stir in the market, AI is emerging as the “hot” new capability to watch. If the popularity of AI chatbots is any indication, this technology is going to have a significant impact on numerous industries, especially with in-person retail. If kiosks are more responsive and smarter with the use of AI, they will be able to offer advanced customer service to shoppers within a retail location or even post-transaction service and support.  

Final Thoughts 

We are at the pinnacle of an exciting time in technology. More companies are investing in robotics and AI, which are creating frictionless experiences for customers. This is going to continue to evolve as this technology advances. To learn more about upcoming retail trends and what companies are successfully integrating robotics into their business plan, listen to the podcast episode below. 

Stay tuned for more episodes in this series, where Bongiorno and his guests will delve into the community within retail environments and the omni-channel experience.