According to a global study conducted by the IBM Institute for Business Value, retail customers have shown an interest in employing AI applications during their shopping experiences.
Thank you for reading this post, don't forget to subscribe!Approximately 60% of the retail consumers sampled expressed a preference for integrated AI applications while shopping, and 4 out of 5 consumers who had not yet used AI were ready to give it a try.
The report, dubbed ‘Revolutionize Retail with AI Everywhere: Customers Won’t Wait,’ highlights the expanding disparity between consumer expectations and the existing state of retail. With dissatisfaction growing in traditional shopping experiences, technology, especially AI, emerges as a potential catalyst for a retail revolution.
IBM claims that a mere 9% of consumers derive satisfaction from in-store experiences, and only 14% express contentment with online shopping. This underscores the need for retailers to reassess their strategies in response to evolving consumer demands.
Amid this dissatisfaction, AI emerges as a prominent solution. More than half of the surveyed consumers showed enthusiasm for AI enhancements, with virtual assistants and AI applications leading the preferences at 55% and 59%, respectively. These results indicate a desire for technology-driven solutions capable of enhancing the overall shopping experience.
Moreover, economic uncertainties, especially the repercussions of inflation, significantly influence consumer behavior. A noteworthy 62% of respondents recognize that inflation has affected their shopping habits, with price standing out as the primary reason (62%) for consumers contemplating a shift between stores or brands.
Although 73% of consumers prefer the in-store experience, it fails to meet expectations, with only 9% expressing satisfaction. This highlights a disparity between preference and reality. Desired enhancements encompass a broader product variety, improved product information, and expedited checkout processes. These insights underscore the immediate requirement for retailers to elevate in-store offerings to meet consumer expectations.
As per the IBM study, consumers voicing their desire for change have demonstrated a keen interest in leveraging AI technology to improve their shopping experiences.
A significant 59% show a readiness to incorporate AI applications into their shopping routine. Additionally, personalization and targeted offerings play a pivotal role, with 52% expressing interest in receiving information, advertisements, and offerings customized to their specific interests.
Nonetheless, there is a discrepancy between current offerings and consumer expectations. Satisfaction among virtual assistant users stands at only about one-third, while nearly 20% express disappointment to the extent of avoiding such technologies altogether. This underscores the imperative to align technological advancements with genuine consumer needs and expectations.
Amidst these challenges and opportunities, the study goes beyond being merely a diagnostic tool; it issues a call to action. Retailers are strongly encouraged to innovate and seamlessly integrate advanced technologies, especially AI, into both digital and physical shopping experiences. The study’s actionable strategies provide a roadmap for retailers aiming to navigate this evolving landscape and meet the changing demands of today’s discerning consumers.
