Evolving consumer expectations and inflation have revealed a widening gap between shopper demands and retail offerings. Technology has risen, playing a significant role in enhancing the overall shopping experience.
According to a new global study “Revolutionize retail with AI everywhere: Customers won’t wait” from IBM, consumers are dissatisfied with retail experiences. Of the 20,000 global consumers surveyed, only 9 percent said they are content with in-store and 14 percent content with online shopping. Six in 10 consumers surveyed said inflation has impacted how they shop, with 62 percent saying price is a top reason they switch stores or brands.
Luq Niazi, Global Managing Director at IBM, said the retail sector, in the face of rapidly shifting consumer expectations and the stark realities of today’s economic picture for households, is presented with an ongoing challenge and an unprecedented opportunity. “We are seeing that today’s consumers, faced with more choices and channels than ever, are increasingly making their purchasing decisions based on the cost and the quality of experiences that retailers provide.”
He said the IBM IBV Consumer 2024 Study underscores an opportunity for retailers to integrate AI and other technologies into the digital and physical shopping experiences to meet these changing consumer demands and their economic challenges. “Leveraging advances in AI technologies, retailers can forge ahead into a new era of commerce and fulfillment, leading with innovation to create shopping experiences that are intuitive, unified, personalized and efficient.”
The study established that in-store experience lacks luster. Consumers want a greater variety of products, more information about products, and faster checkout in stores. A majority of the surveyed are supplementing their in-store experience by using mobile apps. This demonstrates a trend toward a digitally integrated in-store experience.
The survey participants have a strong interest in using artificial intelligence (AI) to enhance various aspects of their shopping. About 59 percent of those surveyed said they would like to use AI applications as they shop. Personalization and targeted offerings are in demand, 52 percent of the consumers surveyed want more information, advertisements, and offerings from stores that are relevant to their specific interests.
Furthermore, inflation is influencing shopping behaviors. Consumers are keen about flexible payment options – 55 percent want varied payment options and 46 percent want to pay in installments.
Also Read: Louis Vuitton Launches New NFT – A Virtual Trunk Worth e6,000
