Technology adoption is often a running joke between generations. Many parents and grandparents are teased about either their proficiency or reluctance, when it comes to mobile phones, computers or other digital devices.
Indeed, there is a variation in generational desire and ability to accept and utilise technology which we need to understand in order to generate real innovation within the hospitality sector.
Technology Adoption in the Hospitality Industry
When we discuss technology adoption in our industry we often focus on the ability and desire of hospitality providers themselves to integrate technology into their businesses. We cite costs, lack of knowledge, business disruption and time as reasons for a reluctance to embrace technology and to innovate.
Whilst these are all important factors in the consideration of integrating technology into any hospitality business there is another crucial factor we must examine before making hasty decisions to overaul our hospitality businesses with technological solutions. This important consideration is consumer acceptance.
Consumer Acceptance
The implementation of technology within the hospitality environment mirrors consumer acceptance. There are some technologies that are already developed and ready to be implemented, but are not necessarily suitable for most environments yet – due to a lack of customer understanding, for example: behavioural biometrics or robots. There therefore needs to be a period of education and gradual exposure before any new technology becomes widespread. Hospitality businesses that implement technology too early into environments where there are low awareness levels or reluctance to accept certain technologies, can risk alienating customers or not generating ROI.
Acceptance stems from both cultural and generational aspects, as well as customer understanding of technologies. Environment also comes into play here, as customers from cities or larger towns may be more exposed and accepting of technology, whilst small towns, or more remote locations may still be far more used to and reliant on cash payments, or person-to-person contact.
Generational Considerations
When planning to innovate and adopt technology, hospitality providers must consider the needs and goals for their unique hospitality environment, as well as the ability of their customers to use and accept this technology. This ability is most often shaped by the generation from which the customer comes.
Let’s look at an outline of the generations, and a review of their acceptance of, and ability to use, technology solutions:
Builders (pre-1946)
Did not grow up in an environment with widespread technology as we know it today.
Often change resistant, so they may struggle, or be reluctant to learn or use new technology.
Baby Boomers (1946-1964)
Main spenders in hospitality, they are resourceful and most have good ability to use certain digital solutions.
However, they may be reluctant to use newer technology, and have a preference for more traditional options.
Generation X (1965-1979)
Relatively accepting of new technology. They may have a preference for more in person contact or less advanced technology solutions.
Generation Y (1980-1994)
The first ‘technology generation’. They grew up with computers and are receptive to new apps or digital solutions and are keen to use technology at all stages in the hospitality environment.
Generation Z (1996-2012)
Loyalty focused and expect technology platforms to be ‘frictionless’. They enjoy customised experiences and want to identify with brands.
Quick to adopt new technologies IF they believe it has benefits.
Generation Z (2013+)
Use tablets and smartphones naturally and technology is an integral part of life for them, having never lived without them.
They are not afraid of technology and will likely desire technology solutions in all parts of the hospitality for a completely seamless digital experience.
The above outline should be taken as a guide and can provide a base for considerations when it comes to adopting technology for your hospitality business. It does not reflect the complexities of individual needs, personality and environment.
This means we have to look at the generational balance of our customer base only as a guide for gauging their acceptance levels of digital solutions in hospitality before looking more closely at our own customers and their needs.
Learning from Our Customer
If you’re seeking to implement new customer facing technology, once you’ve reviewed the customer base and their generational needs, look closer at your unique customers.
Communicating with your customers through in store and online surveys is one of the best ways to gauge levels of acceptance. If that isn’t possible monitor patterns of behaviour through in-store observation(s).
We can monitor behaviour patterns by asking staff to make note and reflect on happenings in store. For example:
Are you noticing increased contactless and cashless transactions?
-Maybe offer mobile payments.
Do your customers want to get in and out quickly? Are customers chatting with staff or trying to order and carry out their transaction as fast as possible?
-Consider introducing a mixed-service environment with self-serve tablets for a smaller location or a few self-serve kiosks for larger sites. Possibly even look at moving to a cashless environment.
Do you have a range of regular customers? Are you noticing customers who seem keen to align themselves with your brand?
-Offer a branded loyalty app, with custom offers and points to encourage repeat custom.
Is there a growing lunchtime rush at your location? Are you experiencing larger queues?
-Consider integrating a pre-order and collect, or a delivery solution.
Are you getting lots of requests for nutritional and dietary information at the till when ordering?
-Self-serve tablets with built in dietary and nutritional information to the menu will help speed up service by allowing customers to customise and view allergens clearly and in their own time.
Creating a Digitally Comfortable Environment
Our job as hospitality providers (let’s not forget what hospitality means!), is to create an environment that is comfortable and enjoyable for customers. Many consumers have a ‘fear-factor’ when faced with unknown technology. This often relates both to their ability to use said technology, but also their potential suspicions when it comes to security.
To innovate whilst maintaining a comfortable experience we may have to introduce technology solutions gradually, or implement mixed service environments, offering dual solutions, like self-serve and manned tills. This gives customers the time to get used to using new technologies and won’t alienate or make them feel uncomfortable and is particularly important for hospitality businesses serving a range of generations.
A new business will be able to introduce technology more easily than an established location. However, you still need to bear in mind your target customer and their levels of technology acceptance.
Conclusion
Technology adoption is crucial for hospitality providers in today’s environment, but we must not forget the needs and desires of our customers when it comes to technology.
For hospitality owners, it’s about striking a careful balance between innovation and understanding. There will always be the first adopters, the transformers, but most smaller businesses must walk the careful line between not getting left behind in a world transforming to digital solutions, and rushing ahead with the fear of potentially alienating customers.
Our job is to work with our customers to gauge their needs and use education and considered implementation to integrate innovative solutions that will build the future of our industry (and grow with it).