Technology is no longer an optional extra

Sunday January 13, 2013

Technology is no longer optional an optional extra.

By Robyn Viljoen

Technology is well entrenched in our daily lives. From internet banking and social media to smart phones and Tablet PC’s. We cannot ignore this revolution. With one in three Kiwis owning a Smart Phone. Businesses are scrambling to come up with cleaver applications to enhance the customer experience.

For those leading the way, they are learning new strategies to capitalise on their strong customer base. A great example of this was Amazon who called on its army of millions of customers to take to the shops with their smartphones and use the Amazon barcode scanner application to scan the prices on any three toys, electronics, sporting goods or music. In exchange for this data they were given 5% discount off their Amazon purchase.

A 185-page white paper from the National Retail Federation, the world's largest retail trade association, took it a step further. In its paper Mobile Retailing Blueprint, the federation suggested that mobile was now widely considered ''the fourth retail channel''. It said: ''Mobile phones are changing the way retailers, suppliers, and consumers both communicate and do business. Our phones are always with us - and always on, connecting retailers to current and potential customers, regardless of location or time of day … There is no doubt that mobile technology for retail is no longer a trend, but a necessary way of doing business.''

The changes have come at a cost to traditional retailers. Staff cuts, store closures and price wars have become the battle cry across the US and more lately Europe and Australia as more and more retailers have been exposed by the price transparency that the internet and mobile apps have given consumers.

Banking too is facing a digital revolution according to Richard Meadows. As young tech-savvy customers start to expect digital banking at their fingertips 24/7, the sanctity of the brick-and-mortar bank branch is under attack. As apps and phones improve in functionality, the traditional interaction between banks and customers is set to be turned upside down. The digital natives of Generation Y are leading the charge and they're demanding more from their banks.

Bank of New Zealand obviously knows which way the wind is blowing. It had the first smartphone apps on the market, and is one of the only banks to cater to the holy trinity of iPhone, Android and other smartphone operating systems. "We've gone from zero to 44,000 users in less than a year," says spokeswoman Erica Lloyd.

The digital age is upon us, it is time to trade tactile experiences for touch screens and apps that allow our customers to interact with us frequently and in ways we only dreamt of.