Retail needs to pull up its socks when it comes to giving consumers a good in-store shopping experience, says new research.
- The 2024 Consumer Study: Revolutionize retail with AI everywhere by IBM Institute for Business Value says retailers and brands are falling short of consumer expectations.
- According to the survey of 20,000 consumers across 26 countries, only 9% of consumers say they’re satisfied with the in-store shopping experience, and only 14% say the same for online shopping.
Looking for “streamlined experiences”: Consumers expect, brands and retailers to create connected experiences, personalise the journey, enable shopping platforms, and make paying more convenient.
- Interested in using next-gen tech to improve their shopping experience, at least three-quarters of those who haven’t used augmented and virtual reality for shopping would like to use it to try on wearable products (75%), shop for products or services (77%), redecorate their homes (79%) or research products (81%).
- This technology can help companies create immersive omnichannel experiences that unify in-store and online interactions with the brand.
Connected data unifies the customer experience: This will happen if brands can earn trust.
- 52% of consumers want to receive information, advertisements, and offerings from stores that are relevant to their specific interests.
- But 40% say they want more control over how companies use their data.
- Connecting with these influential customers requires adeptly tapping technology to make experiences more contextual and customised.
- However, these experiences are just part of the equation. Consumers say they’ve recently switched brands for a variety of reasons—with price topping the list.
Data-driven personalisation demands good governance: Consumers want to know how their information is being used (44%) and want more control over how companies use their data (40%).
- To build trust with wary consumers—while also offering the unified experiences they want—companies must get customers’ explicit permission to track and analyse their behaviour.
- When contextual experiences are also consensual, customers are in control—and that’s what they want most.
Consumers need relevant information to shop sustainably: Consumers want to see how companies measure up in the areas they most care about, such as the use of safe and natural ingredients and recycled materials—but companies aren’t providing enough information.
- Overall, 78% of consumers say sustainability is important to them when choosing a brand—and 61% say they’re willing to alter their habits to help reduce negative environmental impacts.
- More than two in three (67%) say at least half of the products they bought in their last purchase were sustainable.
- Today, 61% of executives say generative AI will be important for their sustainability agenda and 69% of organisations plan to increase their investment in generative AI for sustainability.
Shoppers want payment options that give them more for their money every time, everywhere: Nearly half (46%) of consumers would like to pay for their purchases in installments and more than two-thirds (69%) would like to pay with loyalty or rewards points.
- More than half (55%) say they would like more payment options, including digital wallets and peer-to-peer payment apps, with this figure rising to roughly two-thirds for Gen Zers (66%) and Millennials (65%).
- Nearly half (46%) of all consumers, and more than half of Gen Zers (56%) and Millennials (57%), would like to pay in installations over time. As buy-now, pay-later services, such as Klarna and Affirm, become more commonplace, consumers increasingly expect brands and retailers to offer flexible payment options.
- By delivering these types of rewards and incentives, brands can show customers they’re keeping their best interests at heart. Plus, fast, flexible checkout options boost brand value.
Most consumers are eager to streamline shopping with AI: Roughly four in five consumers who haven’t yet tried AI for shopping would like to use it to research products, look for deals, ask questions, and resolve issues.
- Brands and retailers need to use AI to get a granular view of customer data, deliver targeted offers, and offer seamless customer service.
- Build trust through transparency. Modernise your technology architecture to connect your data and create more value from industry partnerships. Build trust through transparency, says the survey.
