In today’s digital economy, with shopping as easy as the tap of a finger on a smartphone screen, brick-and-mortar retail businesses have no choice but to innovate to keep and grow their clientele.
A large percentage of all retail businesses recognize this reality, but, in some quarters of the economy, the implementation of innovative technologies has been slow-going. This is the case for small and medium-sized, consumer services-oriented companies, specifically auto garages, contractors, and tourism and entertainment-related venues. Only 14.2 percent of these businesses have implemented smart point-of-sale (POS) systems, a crucial tool that can streamline payments, boost customer loyalty and track business operations.
At the same time, many consumer services firms recognize the value that specific technological applications can bring to their operations. For example, 75.6 percent are interested in expanding their payment acceptance capabilities. More broadly, 44.8 percent of these businesses view innovation as critical to their survival.
In this edition of the Retail Innovation Readiness Index, PYMNTS digs into survey response data from more than 700 consumer services merchants, and offers an in-depth look at how they’re pursuing innovation — and what’s holding them back.
There’s no question that, compared to other sectors, consumer services businesses lag in their implementation of innovative technologies. According to the Index, firms in this sector earned an average of 25.5 points out of 100, significantly below health and beauty firms’ score of 35.1, and accommodation firms’ score of 34.1.
That said, larger consumer services companies scored considerably higher in the Index, as contractors with revenues between $10 million and $100 million scored 45.1. Moreover, consumer services firms of all sizes have a keen interest in specific applications of innovative technology. The research found, for example, that businesses are enthusiastic about specific consumer applications, with 76 percent interested in payments acceptance, 57.1 percent in digital receipts and 50.1 percent in satisfaction rankings.
Consumer services firms clearly perceive the specific advantages that technological innovations can bring to their operations, even though many lack the resources to bring them to fruition.
To learn more about how businesses are attempting to bridge the divide between their technological aspirations and their current reality, download the report.
About the Report
The Retail Innovation Readiness Index, powered by AEVI, offers a firsthand account of what drives retailers to invest in or forgo certain innovations. PYMNTS surveyed more than 500 retailers in the food and accommodation sector to gauge their innovation readiness.