Shopping and gambling may seem radically different; however, in today’s world they have one very important characteristic in common: the digital consumer. Whether it’s shopping for clothes, electronics or groceries, or placing bets on online casino sites, the digital consumer has fully embraced the virtual realm and has slowly started to move more of their life online.
Online consumers are tech-savvy. They have embraced the convenience and accessibility that the internet provides. Every year, industries across the globe are seemingly adopting new consumers of this type. If you’re reading this, you may be one of them. However the definition, the bottom line remains: understanding and adapting to the digital consumer is crucial for the success of both the retail and casino industries.
The Online Consumer in the Retail and Casino Markets
Today, almost half of UK shoppers prefer online shopping [source: UK Retail Report, E-Commerce Trends, and Online Shopping Statistics 2023] and by 2024 in the UK, e-commerce is expected to constitute 37.5% of the UK’s retail market. The factors that are shown to influence this growth involve product availability and variety, online pricing compared to brick-and-mortar and the convenience of shopping from anywhere.
More interestingly, perhaps, is how today’s online retail consumers are going about doing their shopping. According to Google’s The Future of UK Shopping report, “online window shopping” was a developing trend this year, referring to a new routine in which shoppers browse several corners of the internet—including social media and various websites—looking for inspiration and additional product information before making a purchase.
Over in the online gambling industry, which in the last year took in £4.0 billion in GGY, the most prevalent consumer trend is more or less what you would expect for a 2023 customer: online experiences are now happening from smartphones. According to the UK Gambling Commission (UKGC) consumer report published in 2021, “the most popular way to access online gambling remains via mobile phone, particularly for younger people.”
Overall, consumers in the online gambling sector are motivated by advancements in technology, including the development of VR and AR technologies and the integration of blockchain for more secure and transparent transactions. It makes sense, as these technologies tend to offer more engaging and immersive experiences with lower fees. After all, online casinos are a form of entertainment in which the player wants to walk away without losing potential winnings to online transaction fees.
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Tech Innovations For the Digital Consumer
One of the most interesting facets of the relationship between the customer and their respective industries is the reciprocal relationship between innovation and consumer behaviour. Online consumers, in particular, have constantly evolving needs and preferences. Thus, technological innovation is more quickly developed and adopted to suit these needs. And then, consumers must adapt themselves to these innovations.
For example, many online retailers are in the process of adopting AI technology. Why? A recent Salesforce study points to a possible answer. The study mentions: “As UK consumers begin to experiment with generative AI, a significant share are keen to explore the technology’s usefulness for shopping. 35% say they’re interested in using generative AI for outfit and wardrobe inspiration and 43% say the same for researching appliances and electronics. 12% say they’ve already used generative AI for shopping inspiration.” This is the same consumer that tends towards online window shopping.
The online casino industry also sees interesting technological innovation in the wake of consumer behaviour—albeit in a different way. The industry response to consumers’ primary use of mobile phones correlated with an overhaul of rules and regulations, specifically around mobile phone use. These regulations protect the consumer, which is ultimately good for the industry. However, online casino operators now face a new challenge: how to effectively adhere to ever-changing and complex regulations.
The answer is RegTech, or Regulatory Tech, which was originally widely used for compliance in the financial sector. The online casino industry has been able to adopt and adapt the technology to help uphold the UKGC framework for legal operation, including ensuring accurate age verification, anti-money laundering compliance and other responsible gambling measures. Interestingly, this technology also has several applications in the online retail atmosphere—including in the regulation of AI.
To Conclude
It’s been a complicated several years for the online consumer, yet, the digital marketplace endures. The retail and gambling sectors, which are moving increasingly online, are forced to adapt or be left behind. Adapt they have, with various technological advancements being currently utilised, implemented or developed in order to either cater to or better protect their beloved consumers—including technologies that are otherwise controversial or not yet fully understood.
As industry innovation pushes forward, how will consumers respond? With the emergence of these new technologies—ensuring these massive industries maintain their competitive edge—it will be fascinating to observe the shifts in consumer demands and consumption patterns. Retail and gambling may currently live in two different lanes but with the digital consumer in common, will the future see these two sectors moving closer together?
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