AI innovation took center stage at IFA Berlin this year, with unprecedented solutions operating alongside vastly enhanced products powered by AI. Exhibitors showcased everything from advanced humanized assistants designed for daily chores to AI-driven robotic pets offering emotional companionship.

It will take time for these products to be honed and readily available for consumers, but many innovations are already here. Hisense demonstrated its AI companion suite, which will transform user interaction while Miele’s flagship lineup highlighted the role AI, advanced sensors and connected systems can play in minimizing decision-making in daily tasks.

While these products may be received well by tech loving audiences, not all consumers are convinced. When these products make it to market, brands and retailers are likely to be faced with cynicism, safety concerns and complexity-driven confusion. To overcome these challenges, innovators must consider the customer experience.

Overcoming the information gap

When it comes to big-ticket tech purchases, consumers want to understand what they are paying for. High spec products are increasingly complex, and many consumers do not have the technical know-how to understand the differences between products and the potential benefits of new AI-enabled features.

In product descriptions and marketing campaigns, brands often prioritize the ‘cool factor’, focusing on innovative new features. While techy audiences take this in their stride, this often alienates consumers who are less confident in their knowledge. These audiences need straightforward explanations of what the product does, how AI or tech has been incorporated and how it can enhance their lives – but they are often hard to find.

Unfortunately, some companies take advantage of limited understanding, slapping misleading ‘AI’ labels on their products, which ultimately do not deliver. This disappointment and negative word-of-mouth these customer experiences generate, along with high-profile hacking horror stories and broader concerns about data security, have impacted trust – and a lack of transparency and information only adds to the nagging feeling that companies have something to hide.

Companies that are honest and open about how their products incorporate AI, the benefits these features offer and how data is used and stored, can start to rebuild trust and earn the respect of consumers. While exciting high-tech features remain an important marketing tool, a ‘back to basics’ approach that offers easy-to-find answers to common questions and addresses concerns in clear, accessible language can help consumers to understand if a product meets their needs and to feel more comfortable making a purchase.

Consider all channels in the retail ecosystem

Although discovery and research often take place online, more than four in five (85%) consumers prefer to buy electronics in-store. Bricks-and-mortar locations provide the opportunity to see or trial products in person, receive answers to unresolved questions and seek advice from sales assistants – and demand will only increase as products become more complex.

While consumers may have a good idea of their preferred product when they enter a store, their decision can change quickly if the experience falls short of their expectations. When shoppers go into a store and cannot find anyone to assist them, they may abandon their purchase or feel undervalued.

Despite the importance of the in-store experience, many tech brands are leaving a gap in the funnel. Once goods reach a physical store, the retailer is often trusted to convert intention into action. However, with physical retail coming under pressure due to rising operational costs, many are reducing headcount, which makes it harder for consumers to get the help and advice they came for.

Lean into education and advocacy

As AI makes products more complex, availability of information and access to in-depth knowledge is becoming a necessity rather than a nice-to-have. When consumers are uncertain, sales will falter and there is a far higher risk of buyers’ remorse.

Retailers must be equipped to convert the confusion of the average shopper into purchases, but training budgets are being cut alongside headcount, with in-person practical training being replaced by online learning. Digital updates can provide a solid foundation, but surface-level modules do not inspire teams’ confidence or build their ability to sell.

Many retailers are unable to fund and provide the training required, but brands have an opportunity to step in. Brands with more complicated products should consider placing brand ambassadors in store or providing additional training to stockists’ staff to ensure that someone is on hand to answer challenging questions, reassure shoppers and help them find the model that will strike the best balance between their needs and their budget.

Experience is make-or-break for tech brands

Brand equity and goodwill are vital for long-term commercial success. Negative experiences detract from trust in both the retailer and the brand, while positive interactions help to solidify it. Brands should monitor sales and reviews closely, identifying areas for improvement, and work closely with retail partners to address any potential issues at the point of sale.

The cost of providing accurate, helpful information online or in-store is negligible, while the cost of ambassadors and training far outweighs the cost of potential failure and subsequent delisting of a brand and its products. Failure to offer in-depth details, expertise and advice can have a sizeable impact on the bottom line: making customers feel comfortable is the only way to ensure AI-enhanced products deliver the expected returns.

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