A new global study conducted by the IBM Institute for Business Value highlights a growing gap between consumer expectations and the current retail offering. The study, titled "Revolutionize retail with AI everywhere: Customers won't wait," surveyed nearly 20,000 global consumers and found that only 9% of respondents are content with in-store shopping, while 14% are satisfied with online shopping.
The study indicates that consumers are eager for AI enhancements in their shopping experiences. Over half of the respondents expressed interest in virtual assistants (55%) and AI applications (59%) while shopping. In addition, the survey revealed that inflation has had a significant impact on consumer behavior, with 62% of respondents stating that price is a top reason for switching stores or brands.
"In the face of rapidly shifting consumer expectations and the stark realities of today's economic picture for households, the retail sector is presented with an ongoing challenge—and an unprecedented opportunity," said Luq Niazi, Global Managing Director at IBM. "The IBM IBV Consumer 2024 Study underscores an opportunity for retailers to integrate AI and other technologies into both digital and physical shopping experiences to meet these changing consumer demands and their economic challenges."
The study also highlights several key findings regarding consumer dissatisfaction with the current retail landscape. When it comes to in-store experiences, only 9% of respondents are satisfied. Consumers expressed a desire for a greater variety of products (37%), more information about products (26%), and faster checkout (26%). However, the survey also revealed a trend towards digitally integrated in-store experiences, with 65% of consumers using mobile apps while shopping.
Online shopping also fell short of consumer expectations, with challenges including difficulty finding desired products (36%), lack of product information (33%), and a cumbersome return process (33%).
The study emphasizes the importance of digital integration in meeting consumer demands. Consumers expressed a strong interest in using AI technology to enhance their shopping experiences, with 59% stating they would like to use AI applications while shopping. The survey also found that 52% of respondents are interested in receiving personalized information, advertisements, and offerings from stores that are relevant to their specific interests.
However, the study also revealed a satisfaction gap for current AI assistant users. Only about one-third of respondents who have used virtual assistants reported being satisfied with the experience, and nearly 20% stated that they do not want to use virtual assistants again.
Economic factors, particularly inflation, are also influencing consumer behavior. The survey found that 55% of respondents desire more varied payment options, and 46% would like to pay for their purchases in installments. Price was identified as a top reason for switching stores or brands by 62% of respondents.
The study concludes that retailers must innovate and integrate advanced technologies, such as AI, to enhance the shopping experience. It provides actionable strategies for retailers to meet changing consumer demands.
Overall, the IBM study highlights the need for retailers to adapt to consumer expectations and leverage AI-driven technologies to deliver more personalized, efficient, and satisfying shopping experiences.
To find out more, go to this link: https://newsroom.ibm.com/2024-01-08-IBM-Study-Widespread-Discontent-in-Retail-Experiences,-Consumers-Signal-Interest-in-AI-Driven-Shopping-Amid-Economic-Strain
