Coveo, a leading enterprise AI platform known for incorporating artificial intelligence into digital experiences, has unveiled its 2024 Relevance Report. This annual report, based on a survey of 4,000 consumers from both the U.K. and the U.S., investigates the evolving expectations, preferences, and challenges encountered by shoppers in today's rapidly transforming retail landscape.
The 2024 Relevance Report highlights several pivotal trends in retail and customer service that businesses must address to enhance their interaction with consumers. One significant finding is that 49% of U.K. respondents have faced issues with customer experience when engaging with businesses. This percentage is even higher among younger generations, with 71% of U.K. Gen Z and Millennials reporting problems, compared to 57% of Gen X and Baby Boomers.
An emerging theme from the report is the growing expectation for personalised experiences powered by generative AI (GenAI). An overwhelming 72% of respondents anticipate that their online shopping experiences will be enhanced by GenAI, aiding in product education and virtual shopping assistance. The integration of GenAI is also expected to streamline pre-purchase decision-making processes, with 37% of respondents looking for educational content on products and 31% expecting help from virtual assistants.
Online shopping satisfaction is another key area highlighted by the survey, with 91% of consumers expecting their online experience to meet or surpass that of in-store shopping. However, this expectation has not always been met, as 49% of shoppers reported ongoing issues with their online shopping experience.
Social media continues to play a significant role in product discovery. Forty-four percent of respondents indicated that finding products easily and with minimal clicks strongly influences their perception of a brand. Additionally, 39% of consumers frequently discover items of interest while browsing social media, with this figure rising to 55% among Gen Z. Despite this, only 14% of consumers complete their purchases directly through social media channels, underscoring the critical role of retail websites in converting interest into sales.
The report also discusses the delicate balance between consumer data sharing and privacy concerns. While 68% of U.K. respondents are open to sharing their data to receive better deals and offers, 65% remain wary about how their data is utilised by online retailers. This duality stresses the importance for businesses to handle consumer data responsibly and build trust.
The post-purchase experience remains a challenging aspect for many retailers, with 68% of respondents facing issues related to customer service, checkout, or post-transaction processes. This includes difficulties in navigation and search functionality, which can hinder problem resolution and deter future purchases. Millennials (71%) and Gen Z (75%) respondents report these issues more frequently.
Lisa Grayston, General Manager of Commerce at Coveo, commented on the findings: "With consumers spending pivotal moments of their shopping journeys online, brands must deliver seamless experiences that bridge the gap between brick-and-mortar and digital retail. The advent of generative AI provides an opportunity for online shopping to become more conversational and advisory, which is essential for retailers looking to stay competitive."
Coveo's report underscores the necessity for retailers to adapt to these shifting dynamics by leveraging advanced technologies like GenAI to improve customer engagement and satisfaction. The findings suggest that businesses failing to embrace these changes risk falling behind in an increasingly competitive market.
