New research has revealed that 64 per cent of shoppers feel retailers do not understand them, suggesting there is room for improvement with personalisation and loyalty initiatives.
Salesforce surveyed 6,000 consumers across six countries, along with mystery shopping assessments of 70 stores across London, New York and San Francisco, and analysis of digital shopping behaviour from 500 million shoppers and 1.4 billion e-commerce visits worldwide.
It found that 69 per cent of shoppers expect to see new merchandise when visiting a site or store, so companies need to create unique, non-commoditised products and compete at the speed of today’s shopper.
Meanwhile, 87 per cent of shoppers begin their hunt in digital channels - up from 71 per cent last year - so retailers must develop a frictionless experience that is accessible to shoppers.
The bricks and mortar store is far from passé though, with 46 per cent of shoppers still preferring to buy in a physical store versus 35 per cent for laptops and 18 per cent for mobile phones.
Additionally, 71 per cent of shoppers said they are now using their mobile devices in-stores - 83 per cent for shoppers aged 18-44 - up from 62 per cent in 2017.
The mystery shopping study found the average mobile score across all stores was just 1.74 out of five. “With a few exceptions, the stores we studied severely lacked mobile apps with relevant omnichannel functionalities and personalisation,” noted Salesforce. “We advise omnichannel leaders to take better advantage of shoppers’ unprecedented use of mobile in stores by leveraging apps, geofencing, SMS and social media.”
Between the choice of retailers, brands and marketplaces like Amazon, consumers said they made half of first-time purchases from retailers, followed by marketplaces (31 per cent) and brands themselves (19 per cent).
But when it comes to repeat purchases, 47 per cent are made on marketplaces, followed by retailers (34 per cent) and brands (20 per cent).
“Agility, loyalty, and personalisation are imperative for retailers and brands to differentiate and win the second purchase,” stated Salesforce. “Unforgettable experiences and products can’t be commoditised.”
The research also showed that six per cent of e-commerce visits that include engagement with artificial intelligence-powered recommendations drive an outsized 37 per cent of revenue. “In a landscape where 64 per cent of shoppers say they feel retailers don't truly know them, AI-driven personalisation is a critical tool,” Salesforce concluded.
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