target audience: TECH SUPPLIER Publication date: Sep 2022 - Document type: IDC Survey Spotlight - Doc Document number: # US48655422
Grocery Retail Investments in IoT, Automation, and Integration Open Door to Next Wave of Customer Retention
This IDC Survey Spotlight highlights current trends in grocery retail technology investment compared with projected investment spending in two years. This near-term strategic data suggests that grocery retailers are rethinking the store to engage customers differently. Current spending is aimed at meeting customer preference for omniscient and frictionless experiences, such as automated checkout, IoT-driven interactions, and automated drive through order pickup. Grocery retailers are also building the cloud- and edge-based systems and connectivity needed to integrate their data streams, which will allow them to gain greater insights into their customers. These investments, already well underway according to August 2022 data, will pave the way for the next wave of strategic spending, which will see grocery retailers increasing their immersive, contextualized interactions with customers via connected customer devices, store devices, and robots.
"Grocery retailers have embraced the need to invest in updated connectivity, automation, and Internet of Things in order to streamline operations. As they bring devices and systems online, they will also open the door to long-awaited tools for understanding and retaining their customers, and we see them planning for that next stage in our data," says Leslie Hand, group vice president, IDC Retail Insights. "For example, the edge technology, computer vision, and sensors that make automated checkout possible now will also enable contextual customer interactions that drive loyalty. Two years from now, grocers are going to have much deeper, richer understanding of who their customers are, what they need, and how to serve them better."