The newly released fourth annual commerce industry report by Coveo, a Quebec-based SaaS search engine powered by artificial intelligence, examines consumer shopping preferences, expectations and frustrations.
The study titled “With Overwhelming Choice, What Really Drives Shopper Purchase Decisions?” was conducted in partnership with Arlington Research and surveyed 4,000 U.S. and U.K. adults to understand consumer spending habits better.
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One major takeaway from the report includes generative AI is a major changemaker when shifting shopper expectations — especially before consumers make their purchase decisions.
As such, 72 percent of consumers polled said they expect their online shopping experiences to evolve alongside generative AI advancement and 37 percent of shoppers expect pre-purchase education on products and their features. Moreover, 31 percent of consumers also expect a virtual assistant to help them select their products.
It’s no wonder that high expectations for online shopping continue to be prevalent — with 91 percent of shoppers expecting their satisfaction with online shopping to be equal to, if not exceeding, their in-store experiences. But despite this high bar, 49 percent of consumers said they still experience problems when shopping online.
Another notable finding in the report is that while social media piques consumer interest, retail websites must match up. The report’s authors see that 39 percent of consumers (and 55 percent of Gen Z consumers) always come across interest-catching products on social media platforms like TikTok, Instagram and YouTube. Yet only 14 percent of shoppers said they went through their purchase through the same channel.
Notably, search has continued to be the major key in product discovery. Forty-nine percent of consumers said their next step after discovery is to navigate and purchase the product directly on the retailer’s website. Furthermore, nearly six in 10 consumers reported they prefer to research online through search and then buy products directly.
In an era where consumers’ valid concerns over data privacy and usage continue to be a big issue for merchants, 54 percent of consumers polled noted that they would share more information about themselves if they received an improved experience. This is an increase since last year’s report by Coveo where 41 percent said the same.
This number jumps to 65 percent of consumers who said they would share information with brands they trust or if they were to receive better deals and offers as a result. In last year’s Coveo report, 48 percent of consumers reported the same.
“With consumers spending pivotal moments of their shopping journeys online, brands must deliver brick-and-mortar and digital retail experiences that complement each other,” explained Lisa Grayston, general manager of commerce at Coveo. “What’s more, nine in 10 consumers are now expecting their online shopping experience to match or exceed the satisfaction of in-store experiences. With the advent of generative AI, online shopping can transcend mere transactions and become conversational and advisory. It’s crucial for retailers to adapt to this shift before they lose ground to their competitors.”
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