A survey of 4,000 consumers revealed that for over 60% of respondents, being able to easily find products and content has the biggest impact on how they perceive a brand.
Coveo is the leading enterprise AI platform that infuses AI search and generative AI (GenAI) into every experience for greater personalization. Digital Experience Coveo, the retailer that drives business outcomes, announced the release of its fourth annual Coveo Commerce Industry Report, based on a survey of 4,000 shoppers, evenly split between the U.S. and the U.K. Conducted in partnership with Arlington Research, the report, “Amidst an overwhelming array of choices, what really drives shoppers' purchasing decisions?” explores shopper preferences, expectations and frustrations during a time of transformation in the retail industry.
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The survey shows that GenAI is playing an increasingly important role in guiding purchasing decisions, with 72% of consumers expecting it to do so online. Shopping Experience Demands for digital commerce evolving with GenAI are on the rise. These expectations include pre-purchase education on products and attributes, and even virtual shopping assistance. Meanwhile, shoppers are more willing to provide personal data in exchange for deals, and they are also raising concerns about its use. The growing influence of social commerce is also a notable trend, especially for Gen Z shoppers, who often discover products on social media platforms, yet only 14% said they hit the “buy” button through that channel. All of this shows how deeply ingrained digital interactions are in the retail customer experience. In fact, a Coveo survey confirmed that 94% prefer to start or end their shopping experience online.
“As consumers spend more of their shopping moments online, brands need to deliver brick-and-mortar and digital retail experiences that complement each other.” Lisa Grayston“Additionally, nine in 10 consumers say they are more likely to shop online than ever before,” said Yahoo! Shopping's General Manager of Commerce at Coveo. Shopping Experience “It needs to deliver the same or even better experience as the in-store experience. With the advent of generative AI, online shopping goes beyond a transaction to become a conversation and advice offering. It's important that retailers adapt to this change before they lose out to their competitors.”
Coveo’s latest 2024 Commerce Industry Report includes the following findings:
- GenAI has changed shopper expectations, especially when it comes to pre-purchase decision-making: 72% expect GenAI to evolve their online shopping experience, 37% expect pre-purchase education on products and attributes, and 31% expect a virtual assistant to guide them through product selections.
- Expectations for online shopping remain high, with 91% of people expecting their online shopping experience to be equal to or better than their in-store experience, but 49% of shoppers say they still encounter issues online.
- While social media piques consumer interest, retail websites are a key avenue for conversion: Nearly two-fifths (39%) say they often/always come across products that interest them while browsing social media platforms, a figure that rises to more than half (55%) for Gen Z. Yet, only 14% of shoppers say they complete a purchase through the same channel.
- Product discovery impacts brand perception: Over two-fifths (44%) say being able to find what they're looking for with just a few clicks has the biggest impact on their brand perception. An additional 18% of respondents said the ease of finding support content (manuals, instructions) has the most positive impact on their brand perception, demonstrating the importance of providing a robust customer experience and discovery to over 60% of consumers overall.
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- While willingness to share personal information for deals is on the rise, so are concerns about data use: 54% say they would share their information if it would improve their experience, and 65% say they would do so for brands they trust or if they got better deals or perks as a result (compared to 41% and 48%, respectively, for the same question in Coveo's 2023 report). That said, there's also been a slight uptick in the number of shoppers expressing concern about how online retailers use their data, rising from 64% in 2023 to 71% in 2024.
- Post-purchase experiences remain a major challenge: 68% of respondents experienced issues with customer service, checkout, or the post-transaction experience when interacting with a company, including navigation or search issues that prevented them from resolving their issue or question. Millennial (71%) and Gen Z (75%) respondents were more likely to cite purchase, customer service, or post-transaction issues.
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