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By Lisa Grayston, General Manager of Commerce, Coveo
What do consumers want from an online shopping experience? What are retailers doing right? What are they doing wrong? Coveo has conducted a study for the fourth time to take the pulse of the industry. In our Commerce Industry Report 2024, “What Really Influences Shoppers’ Purchase Decisions Given Overwhelming Choice?” we summarize our findings. Some of our findings might surprise you. Hint: It has to do with digital impatience.
Just a decade ago, digital impatience was nonexistent. We were happy to wait a few minutes for our computers to boot up and reveled in the ability to search for things online (no matter how cumbersome the search was). But today? Everyone has a smartphone. Want something? It’s literally in the palm of your hand and it can be on your doorstep the same day. Not sure what movie you want to stream this weekend? Netflix has you covered with personalized recommendations based only on your past viewing habits.
This is what consumers expect today. Not just to have their needs met immediately, but to have those needs and wants anticipated. When we don’t get that personalized experience, the result is digital impatience.
This is important for retailers because if they don’t provide a personalized, tailored experience that delivers relevant results quickly, consumers may go elsewhere with a click or tap of a mouse.
With that in mind, here are the top four shopper pain points and trends we found in the 2024 Commerce Industry Report, along with insights for retailers.
- Consumers have high expectations for online experiences, but they are not being met. Almost all consumers (91%) expect the online shopping experience to match or exceed that of the in-store experience, but nearly half (49%) say they still encounter problems online. They find the websites are slow, offer too many choices, and it’s difficult to search or filter for the products they want. In short: it’s frustrating.
Most important finding: Shoppers want retailers to rethink product discovery using a healthy dose of AI to streamline their path to purchase: by building a layer of intelligence into a site that gives them personalized search suggestions, dynamic filters that adapt to each query, and generative AI that offers advice like a good store associate would.
- 72 percent expect generative AI to improve their online shopping experience. People want to be educated about products and their features before buying and many expect a virtual assistant to help them choose the product. They want and expect ChatGPT-like technology as their personal shopper.
Most important finding: Customers want retailers to showcase their expertise and help them summarize and educate them on the products they are looking for. One way to do this is to use a generative answering solution across a retailer’s rich content – from blogs to articles to how-to guides – to offer expertise and gain the shopper’s trust at the start of their shopping experience. Questions like “What type of paint should I use for a children’s outdoor playground?” can be easily answered by a well-trained and informed generative AI solution, which can then lead to a more efficient shopping experience, higher shopper satisfaction, and lower bounce rates and returns.
- To some extent, shoppers are willing to share data to provide a more personalized experience. The survey found that 54% of respondents are happy to share personal information if it improves their experience. Even more, 65%, said they would do so for brands they trust or if it means they get better offers and deals. That’s a 20 percentage point increase in willingness to share their information from last year’s results. But it’s a bit of a paradox, because this year more people are concerned about how their data is used by online retailers. Clearly there needs to be a balance.
Most important finding: Retailers need to focus on collecting only the data that improves the customer experience. Advanced AI personalization techniques that can detect a shopper’s intent when interacting on a website and that don’t require a profile or login to be effective are one way to achieve this delicate balance between personalized shopping and data sharing.
- The post-purchase period remains a problem and a great opportunity to retain customers and prevent digital impatience. Admit it: If you buy something online and it’s not right, do you return it or save yourself the hassle and pay the price? You’re not alone. Nearly half of respondents have had a customer service issue when interacting with a business, especially online, with navigation and search issues preventing them from resolving problems or questions.
Most important finding: It’s all about creating a better customer experience before, during and after a sale. By using the same AI platform to put the customer at the center and identify key commerce touchpoints, retailers can meet their customers where they are in their journey and create a seamless experience.
In summary, retailers need to increase their AI performance to meet their customers’ expectations. A company’s brand and customer loyalty depend on it.
