HOW CONSUMERS ACCEPT, UNDERSTAND AND TRUST AI

Jean-Paul EdwardsDirector, Strategy and Product DevelopmentOMD EMEA

Chelsea HorncastleSenior Insights and Business Development ManagerOMD EMEA

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MEDIA SERVICES

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AIWHY IS MARKETING INTERESTED IN AI?

MARKETING

WITH PROGRAMMATIC

BUYING

ANALYTICS

AIMARKETING

OFSERVICE

EXPERIENCES

SKILLS and BOTS

AIMARKETING

TOSEO

VRM/AGENTS

DEVELOPING QUICKLY

DRIVING PERFORMANCE

IMPROVEMENT

THE LONG TERM VISION

OUTSOURCED

CONSUMER DECISION

MAKING

TODAY’S EMERGING

CHALLENGE

KEY TO SUCCESS IN THE

LONG TERM

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INTRODUCING RETAIL REVOLUTION : UNDERSTANDING CONSUMER PERCEPTIONS & POSSIBILITIES OF AI

AI PERCEPTIONS

RETAIL BEHAVIOURS

AIUSAGE

@OMD_EMEA

THE RESEARCH

18Technologies

tested

13Markets

15,986NAT REP

Respondents

6Subject Matter

Experts

1Hackathon

19Retail Sectors

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EUROPEAN CONSUMERS ARE OPEN TO AI TECHNOLOGIES

Base: EMEA Total n=15986Q. Would you consider AI to be a part of your life? Source: OMD Snapshots, 2017

25%

61%

SPAIN

FRANCE

36%ITALY

48%

30%ROMANIA

36%

45%

16%

58%

POLAND

18%

50%

GERMANY

SWEDEN

14%

19% FINLAND

26%

19%

28%

RUSSIA

61%NETHERLANDS

16%

42%

NORWAY

18%

23%

18%

DENMARK

42%

UK

26%

32%

Yes, I would like to get an AI device/app Yes, I am already using an AI device/app

22% OF EUROPEANS ARE ALREADY USING AI

AND ANOTHER

41% WOULD LIKE TO

36%

@OMD_EMEA

YOUNGER AUDIENCES HAVE DIFFERENT BARRIERS TO ADOPTION

AI Barriers

I shouldn’t have to deal with what amounts to an inferior search function with a text to voice gimmick, as I can go through and process far more information myself in less time.

“

Steven (18-34, London)

Source: AI the retail revolution UK qualitative study

36%

24%

22%

19%

19%

18%

17%

15%

13%

9%

2%

I don't need AI

I don't trust the data collection of AI

It is easier to use my default option

AI is too intrusive

I don't understand the benefit of using AI

I don't think AI is safe

I don't think the technology is developed enough

I don't think the interactions are seamless or human enough

I need to be taught how to use it

It's not accessible for me

Other reason

Significantly higher for <35s

Significantly higher for >35s

Base: EMEA, amongst those who would not consider AI n=3345Q. Why would you not consider an AI capable device or app as being part of your life? Source: OMD Snapshots, 2017

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SEGMENTATION

ENTHUSIAST SOCIAL CAUTIOUS PASSIVE UNINTERESTED

High all scoresHigher in human

interaction

Positive but

suspicious of tech

Functional

relationshipLow all scores

22% 23% 12%17%26%

Twitter - @OMD_EMEA

AI FITS DIFFERENT NEEDS ACROSS CATEGORIES

Options based on characteristics

Quicker customer service

New opportunity and discovery surprises

Assistance to make more informed decisions

Base: EMEA Total n=15986Source: OMD Snapshots, 2017 @OMD_EMEA

BEAUTY & PERSONAL CARE

32%

FASHION & APPAREL

32%

HEALTH &FITNESS

27%TRAVEL25%

CONSUMERELECTRONICS

25%

MOVIES & TV

20%

CONSUMER ELECTRONICS

35%UTILITIES

30%

MEDICINE & HEALTHCARE

27%

GROCERIES33%

HEALTH & FITNESS

25%

MEDICINE & HEALTHCARE

25%

GROCERY

FINANCIAL

SERVICES

THE TIME FRAME OF DISRUPTION DIFFERS BY RETAIL SECTOR

TIME FRAME OF DISRUPTION

TRAVEL

UTILITIES

ENTERTAINMENT

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AI FUNCTIONALITY IS A PRODUCT OF CAPABILITY AND TRUST

STAGE 1Information

Me: “What’s my bill for this month?”

STAGE 2Context aware

Me: “How much energy did I use?”– we are talking

about this month

STAGE 3Co-Activity

Bot: “This increased 7% from last month. You’ve

used 5% more than people like you. Your washing

machine used the most energy this month.”

STAGE 4Vicariously

Bot: “You normally do washing today. Should I

schedule the wash to start automatically at

9pm when tariffs are at their lowest?”

STAGE 5Autonomy

Bot: “I have optimised your energy consumption for the

next month, based your data and preferences I have

enrolled you on a new plan starting tomorrow.”

Tru

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do

)

Capability (what tech can do)@OMD_EMEA

RETAIL REVOLUTION:

KEY TRENDS

3 KEY RETAIL TRENDS

IMAGINATIVE SHOPPER EXPERIENCE

AI AS AN EXTENSION OF THE BRAND

AUGMENTATION NOT AUTOMATION

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AUGMENTATION NOT AUTOMATION

THE RIGHT COMBINATION OF AUTOMATION AND HUMAN INPUT -AUGMENTATION - DRIVES AI ADOPTION

BALANCE BETWEEN THE HUMAN INTERACTION AND WHERE TO LET THE AI TAKE

OVER

ALLOW THE USER TO BE PART OF THE DECISION

MAKING, WHILST SAVING THEM TIME

@OMD_EMEA

65% want the option to contact a human at any point during the interaction

COMMIT TO TRANSPARENCY AND SHARED POWERS

48%

43%

30%

28%

26%

33%

44%

23%TRUST AI

NEUTRAL

DO NOT TRUST AI

Q5a. How much do you trust AI interactions? Q5b. Why do you not trust AI interactions? Base: Total n=13156 - all understanding AI Source: OMD Snapshots, April 2017

I don’t trust how my data is being used

I don’t have enough control over the experience

It depends on the task

I don’t trust the platform (e.g. Facebook Messenger, Amazon

Echo)

I don’t trust the brand providing the service

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BRANDS SHOULD USE AI TO REDUCE SHOPPER FRUSTRATIONS BY LEVERAGING CONSUMERS’ OPENNESS TO SPECIFIC AI ASSISTANCE TYPES

R4. How much do the following situations frustrate you when shopping - top 2 box ; willing to put in a lot of effort (5) & willing to put in a quite a bit of effort (4)

OMD Snapshots, April 2017

Base: All respondents understanding AI Total n=12021

CONVENIENCE

Queuing at

the till

52%

RELEVANCE

Not being able

to get relevant

assistance in time

50%

ASSURANCE

Not knowing the

quality or fit of

products online

56%

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CONSUMER EXPECTATIONS VERSUS CUSTOMER SERVICE

IMPLICATIONS

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IT IS IMPORTANT TO SIGNPOST AND SET

EXPECTATIONS IN CONSUMER-FRIENDLY

LANGUAGE

IMAGINATIVE SHOPPER EXPERIENCE

CUSTOMERS WANT THEIR SHOPPING INTERACTIONS TO PROVIDE EASY, QUICK AND RELEVANT SERVICE

Shopping Experience - Importance

61%

57%

47%

43%

42%

27%

20%

Easy payment method

Quick delivery

Customer service

User-friendly online shopping experience

Seamless returns

In-store experience

Personalisation

R1. What are the most important aspects about a shopping (both digital and / or physical) experience for you?

Base: All respondents understanding AI Total n=13156

Source: OMD Snapshots, April 2017

Those that have used Chatbots are most likely to think

personalisation is an important aspect of the shopping experience

(28%)

In future, experience is likely to be the more discriminating driver in shopping choices

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A WIDENING RANGE OF MOMENTS AVAILABLE

EASY MOMENTS NEED-TO-KNOW MOMENTS IMMERSIVE MOMENTS

RECEIVE REWARDS FROM

YOUR FAVOURITE BRAND:

GET UP TO SPEED WITH GAME OF THORNES:

TRY ON DIFFERENT MAKE-UP LOOKS: STEP INTO A TV SERIES:

FIND THE PERFECT GIFT:

@OMD_EMEA

DON’T THINK OF AI AS AN ADD-ON

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CONSUMER FEEDBACK: CUSTOMER CARE CHATBOT PROTOTYPE

• Ease of use, organic process, relationship over time

• Targets user needs directly based on a specific purchase

• Customers value clear delivery information and interaction

Offers help with delivery and building

requirements and then suggests care tips,

related items and reminders.

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CONSIDER MAXIMISERS AND MINIMISERS

DON’T BE AFRAID TO ADD IN FRICTION IN CERTAIN

CATEGORIES

IMPLICATIONS

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AI AS AN EXTENSION OF THE BRAND

THINK ABOUT PERSONALITY AND FUNCTIONALITY

LISTENING LEARNING

PERSONALITY

CONTENT

CUSTOMER CARE

COMMERCE

HOW DO I BEHAVE? WHAT CAN I HELP YOU WITH?

UTILITY

PERSONALITY FUNCTIONALITY

@OMD_EMEA

CHOOSE A PERSONALITY AND TONE OF VOICE THAT REFLECTS YOUR BRAND

From clinical… …to banter

Bots should be seen as an extension of the overall comms and brand. Be open and upfront that it is a bot and not a person.

72% of Europeans want to be informed that they are interacting with an AI from the beginning

@OMD_EMEA

THINK AUDIENCE FIRST

WHAT WHERE WHEN

Easy payment method

Customer service

Quick delivery

User-friendly online shopping experience

In-store experience

Seamless returns

Personalisation

58%

56%

52%

49%

37%

28%

18%

@OMD_EMEA

SUCCESS NEEDS SCALE

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SOCIAL AND DISPLAY ADSOWN PAGE AND

BUTTONS FOR WEBSITEMESSENGER CODE

OR LINKCHATBOT MARKET

PERSONALITY AND TONE OF VOICE SHOULD MATCH

THE BRAND

AI IS NO LONGER WHAT YOU DO BUT WHO YOU

ARE AS A BRAND

IMPLICATIONS

@OMD_EMEA

KEY POINTS

BRANDS (AND THEIR VALUES) WILL

INCREASINGLY BE EXPRESSED THROUGH AI

WINNING IN RETAIL IN 2020S BASED ON

APPLICATION OF TECH TO NEEDS

ENGAGE NOW TO REPRESENT VOICE OF

THE CONSUMER

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THANK YOU