PwC empowers businesses to embrace frictionless futures

• New experience for businesses to help them to scale efficiently powered by PwC’s intelligent platforms, built on Microsoft Azure and activated by leading computer vision AI specialists AiFi 
  

• 43% of consumers willing to pay more for convenience 

• Early reports estimate frictionless technology could increase basket fill by 20%

Frictionless consumer technologies are high on the agenda for PwC which has unveiled a new report and experience showing what the future of the consumer sector might look like. Its recent Frictionless retail report states 43% of consumers will pay more for a product if it is convenient, showing how such technology can increase profits for businesses wishing to capitalise in the convenience market. In addition, 55% of consumers are happy to switch to a frictionless store with 52% people in the UK already using self checkout, and 20% using self scanning. Early forecasts by PwC predict the use of frictionless technology could increase basket fill by 20% and reduce waste by 0.5% with things such as digital receipts contributing to this. 

In addition to its research into the sector, PwC is using its Manchester office as a base for the “Frictionless Futures” pop up. The experience is designed to highlight how data and experience can work together to create better outcomes for the modern world of consumer led businesses.

Frictionless is the use of emerging technologies but in a traditional physical environment. They can be used in all manner of locations, from live events, to convenience shops and grocery stores, and more, to provide a fast and seamless experience. For consumers, these technologies enable them to enter premises, pick up products, and leave without the need to scan, queue, or check out. 

Interestingly, 47% of people who said they would shop frictionless are full time workers, demonstrating how city workers might lend themselves to such an experience when they are time limited. 

For businesses, it can uncover e-commerce levels of data on how customers shop, what they want and how they interact with products. This accurate, real time data enables businesses to manage product performance and availability more effectively. 

Supply chains become more predictive, agile and transparent as information flows seamlessly from the point of origin to the point of consumption. These rich insights can then be used to transform around the customer, to create personalised, secure and connected experiences that accelerate the journey to net zero, build loyalty and unlock real value.  

Despite some early adoption, the technology is not being used as widely as it could be in the UK. Lisa Hooker, Leader of Industry for Consumer Markets, works with many clients already using the technology across the country and believes it is a worthwhile investment: 

“In an environment of low growth, it’s important for our clients to win share of wallet profitably and sustainably.  In order to do that, they need to focus on improving customer experience and creating more personalised interactions, which increasingly means investing in the right technology. Frictionless technologies - and the plethora of data and insights they can generate - offer consumer-facing businesses a chance to modernise, better engage with customers through what they offer and truly understand their needs and wants. Our recent Store Openings & Closures data showed that retail parks were thriving, with many of the takeaway and drive-thru brands already making the most of this technology. We hope we can advise businesses across the consumer sector to embrace frictionless for dual benefit to them and their consumers”.

Other sectors can easily mobilise frictionless technology such as banks and other financial services institutions. For example, banks can pre-approve customers for certain products, provide ‘embedded’ services such as insurance or make a timely recommendation for a service based on the data that it already holds.

Oz Ozturk, PwC UK Alliance Project Sponsor who is spearheading the Frictionless Futures movement at PwC UK said: 

“With the way we shop changing at a greater rate than ever before, our Frictionless Futures experience is helping our clients do extraordinary things: from creating genuine personalisation for customers to building secure and seamless experiences, all while realising genuine commercial benefits. This has been built with an ecosystem of Alliance partners to create an immersive experience and demo environment for clients”

“We are now able to turn data, interactions and touchpoints into rich insights which can enable a more tailored and personalised shopping experience. By connecting the right information to the right individual, businesses can target customers more effectively and create a seamless, differentiated experience. Furthermore, with cyber security being embedded across the supply chain from the outset, organisations can enable exceptional customer experience that reduces friction, builds trust and delivers sustained growth."

Steve Carlin, CEO of AiFi, a global leader in retail AI, talks about the partnership: 

"Together with PwC and Microsoft, we are paving the way for the future of retail, providing customers with the speed and simplicity of shopping without waiting in line. AiFi's platform harnesses the power of computer vision, enabling flexible and scalable solutions that adapt to a wide range of different environments offering customers a convenient and streamlined shopping experience. We're thrilled to collaborate with our alliance partner PwC on this initiative showcasing the true evolution of shopping.”

Jen Morrison, Head of Enterprise Retail  at Microsoft commented on the Frictionless Futures experience which makes use of their Cloud for retail technology which is used in combination with AiFi’s technology:

“We're here to help retailers drive sales and lower their costs through the use of technology driven solutions, whilst also creating a smooth and seamless shopping experience for their customers. With the Microsoft Cloud for Retail, we’re bringing together data from across the retail value chain to create personalised experiences and improve operations. We look forward to seeing how this experience can help retailers adapt to change and drive innovation in the industry.”

The Frictionless Futures Experience is available to visit by appointment only. For more information, please visit: https://www.pwc.co.uk/issues/frictionless-futures.html