Coveo’s 2024 Relevance Report has shown that consumers want their online retail experience to match what they get in-store.
This yearly report, grounded on a survey of 4,000 consumers from the U.K. and the U.S., explores shoppers’ changing expectations, preferences, and obstacles in today’s swiftly evolving retail environment.
The 2024 Relevance Report underscores several critical retail and customer service trends that companies must address to improve their consumer interactions.
One discovery was that 49 per cent of U.K. respondents have encountered issues with customer experience when engaging with businesses. This proportion is even higher among younger generations, with 71 per cent of U.K. Gen Z and Millennials reporting problems, compared to 57 per cent of Gen X and Baby Boomers.
A rising theme from the report is the increasing expectation for personalised experiences powered by generative AI (GenAI).
More than 72 per cent of participants foresee that their online shopping experiences will be augmented by GenAI, assisting in product education and virtual shopping support.
The incorporation of GenAI is anticipated to streamline pre-purchase decision-making processes, with 37 per cent of participants seeking educational content on products and 31 per cent expecting aid from virtual assistants.
Online shopping satisfaction is another focal point highlighted by the survey, with 91 per cent of consumers expecting their online experience to equal or exceed that of in-store shopping. Nevertheless, this expectation has not always been fulfilled, as 49 per cent of shoppers reported persistent issues with their online shopping experience.
Social media plays a significant role in product discovery. Forty-four per cent of respondents indicated that effortlessly finding products with minimal clicks profoundly influences their perception of a brand.
More than 39 per cent of consumers often discover items of interest while browsing social media, with this number climbing to 55 per cent among Gen Z. Despite this, merely 14 per cent of consumers finalise their purchases directly through social media channels, emphasising the pivotal role of retail websites in converting interest into sales.
The report examines the fine balance between consumer data sharing and privacy concerns. While 68 per cent of U.K. respondents are amenable to sharing their data to receive better deals and offers, 65 per cent remain cautious about how their data is utilised by online retailers. This dichotomy underscores businesses’ need to manage consumer data responsibly and establish trust.
The post-purchase experience continues to be challenging for numerous retailers, with 68 per cent of respondents encountering issues related to customer service, checkout, or post-transaction processes. This encompasses difficulties in navigation and search functionality, which can impede problem resolution and deter future purchases. Millennials (71 per cent) and Gen Z (75 per cent) respondents report these issues more frequently.
Coveo General Manager of Commerce Lisa Grayston said: “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 allows online shopping to become more conversational and advisory, essential for retailers looking to remain competitive.”
Coveo’s report emphasises the need for retailers to adapt to these shifting dynamics by using advanced technologies like GenAI to enhance customer engagement and satisfaction. The findings imply that businesses neglecting to embrace these changes risk lagging in an increasingly competitive market.
