Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.

This week, we’re looking at how AI could re-shape online shopping, the rise of Retail Media, and the proved benefits of investing in customer feedback within dealerships. 

Key news

  • Shipup announced new research on UK shoppers and their attitudes towards post-purchase communications. 26% shoppers always read their post-purchase emails and 29% read them regularly. Yet, 25% of shoppers claimed that they don’t receive post-purchase branded communications from retailers. This marks an astronomical divide and a missed opportunity for retailers.
  • Quantum Metric’s new report has revealed that to beat the cost of living price hikes and ensure consumers get the biggest bang for their buck, 74% of digital leaders will offer more budget-friendly options than usual for the festive season. The topline findings show that mobile is driving 74% of all digital traffic. Like retail and other industries, travel has seen mobile adoption skyrocket. Mobile is driving 80% of retail traffic and 73% of sales. This is emphasising the need for seamless interactions to reduce frustration and abandonment rates, especially on mobile and web apps. 
  • Zoom has today launched its Workforce Engagement Management suite, including Workforce Management and Quality Management for Contact Centre customers to help boost employee engagement and customer satisfaction.

Gen Z believe AI will improve online shopping

88% of Gen Zers globally think AI can improve online shopping, according to a new consumer research study by Rokt and Harris Poll. The study, designed to understand the changing expectations of today’s consumers, also identified the top priorities for ecommerce shoppers. This includes relevant deals, low prices, and a personalised shopping experience, particularly at checkout. 

“Brands and retailers across categories are scrambling to identify how they can best use AI to elevate their ecommerce customer experience and drive revenue,” said Elizabeth Buchanan, Chief Commercial Officer at Rokt. “This research provides decision makers with a roadmap for creating new strategies and implementing advanced tech, such as AI, to significantly help improve the online shopping experience in ways that will surprise and delight shoppers.“

Gen Z consumers globally are optimistic about AI’s role in ecommerce. 55% of respondents are interested in an AI assistant that would make online shopping more convenient by simplifying product discovery and anticipating their needs and desires. Additionally, 51% of Gen Zers say they are interested in augmented reality and virtual reality shopping experiences.

Other key findings

Gen Zers globally identify the top five ways AI will improve online shopping, including making it easier to:

  • Compare prices (47%)
  • Find deals (45%)
  • Receive relevant offers and product suggestions (41%)
  • Receive personalised assistance (37%)
  • Find reviews (28%)

Topline UK trends:

  • 45% of UK shoppers want to see an easy checkout process, as opposed to 36% worldwide.
  • An impressive 67% of surveyed UK shoppers express the need for relevant offers during the checkout process, which is 10% higher than the global average.
  • In terms of checkout frustrations, 39% of UK consumers said that were annoyed by an excess of ads, slightly above the global average of 34%.
  • Having to manually inputting payment information was also a source of frustration, with 26% of UK shoppers finding it bothersome compared to 20% globally.
  • UK shoppers exhibited a 5% higher likelihood (34%) than the global average (29%) to find a different site when encountering checkout frustrations or barriers.

9 in 10 retailers have seen revenues increase due to digital signage adoption

A recent study of UK-based retail leaders,  conducted by M-Cube, has revealed that 91% of retailers have experienced revenue increases after investing in digital signage solutions.

The report surveyed 250 retail leaders to gauge the growing influence of Retail Media – a type of proximity marketing that targets people at or near the point of sale – and the significant role digital signage plays in this retail evolution. It revealed that 98% of retail leaders believe that Retail Media will shape the future of retail. Moreover, 89% of retailers are turning to Retail Media strategies to enhance profit margins.

The rise of Retail Media

M-Cube’s survey shed light on the retail industry’s direction. 60% of retail leaders predicted that up to a quarter of their revenue will stem from Retail Media solutions. In fact, 48% of retailers noted an uptick in revenue and profits due to Retail Media.

The majority (52%) of retail leaders pinpointed increased brand awareness and product discovery as the primary benefits of Retail Media on the customer shopping experience. When quizzed about the essential components for executing these strategies, 83% emphasised the pivotal role of real-time consumer behaviour data.

“In this highly competitive market, retailers are constantly seeking innovative methods to augment their offerings and elevate their profit margins. This data underscores Retail Media’s emergence as a key differentiator in this. It grants retailers avenues to engage customers across every channel, both online and in-store. Beyond offering retailers enhanced opportunities for profit maximisation, it deepens their understanding of their customers, positioning them better to curate personalised experiences.”

– Alexios Blanos, UK Business Director at M-Cube

Dealerships benefit from a 10% sales increase when they focus on consumer feedback

Reputation released its annual automotive industry report, analysing 5.5 million car buyers and service reviews. Insights revealed the evolving sentiment of auto consumers, the power of reviews to drive car sales, and what it takes to be a top dealership globally.

Using data analysis from Reputation’s AI-powered platform, as well as an annual survey that analyses consumers’ purchasing preferences, the report found that consumer reviews are the single most important factor for vehicle buying decision making.

  • Customer feedback drives business. 84% of consumers deem dealership reviews crucial, and 74% insist on a minimum 4-star rating. Meanwhile, 40% of consumers are likely to provide feedback in a public forum like a review site. 
  • Review volume is soaring. Year over year, review volume increased by 11%. 2023 marked peak review volumes across all major sources of review locations when compared to the last three years. 
  • Interest in EVs. There is a 60% increase in review volume for EVs over the past two years. In the UK,  29% of EV buyers have made their purchase decision after engaging with a dealership.
  • The Gen Z Factor. 93% of Gen Z use reviews to make purchasing decisions, and are twice as likely (17%) to have their choice of dealership influenced by social media versus the general population (8%).

The report also includes an annual ranking of brands and dealerships based on Reputation Score, a proprietary, AI-fueled metric that serves as a performance indicator in the automotive industry. Reputation Score uses a measurement on a scale of 0 to 1,000 that considers a location’s sentiment, visibility and engagement.

Online reviews also help drive consumer overall satisfaction at dealerships as businesses work to achieve a 4-star rating by responding to and managing feedback at the local level. Taking a reputation-first approach at the local level leads to a higher Reputation Score, which correlates with higher revenue. In fact, dealerships whose Reputation Score increased by 150 points from 2022 to 2023 saw a 10% sales increase.

Thanks for tuning into CXM’s weekly roundup of industry news. Check back next Friday for the latest updates of the week!

Post Views: 506
CXM News This Week in CX