The term “frictionless commerce” is widely used to describe how digital technologies are blending product purchases seamlessly into consumers’ daily lives. In the ultimate manifestation of frictionless commerce, purchases will be automatically initiated on behalf of consumers (with their advance consent) using real-time, integrated data from known preferences, past behaviors, sensors, and other sources. Envision, for example, a “smart fridge” automatically ordering food items it senses are running low. That is not common yet, but ever since consumers were offered the option to shop online from home, rather than having to go to a store, technology has been rapidly removing friction from commerce.
How Do Consumers Choose in a World of Automated Ordering?
“Frictionless” commerce is a term widely used to describe how digital technologies are blending product purchases seamlessly into consumers’ daily lives. In the ultimate manifestation of frictionless commerce, purchases will be automatically initiated on behalf of consumers (with their advance consent) using real-time, integrated data from known preferences, past behaviors, sensors, and other sources. Envision, for example, a “smart fridge” automatically ordering food items it senses are running low. Frictionless commerce will test the emotional bonds that make consumers loyal to established brands. Already, consumers are being disintermediated from traditional brand choices via search engine and online retailer algorithms that determine which products are presented to consumers, and in what sequence. That puts all brands in danger. To remain successful, established brands must give consumers a reason to interrupt the increasingly automated purchasing process and actively choose a brand, rather than passively accepting substitutes. It is time to boldly experiment with new approaches.