IBM: AI can improve shopping experience
New data indicates that artificial intelligence (AI) could be a valuable tool for boosting customer satisfaction.
Only 9% of consumers surveyed said they are content with in-store shopping and 14% said they are content with online shopping, according to the third edition of a biannual study of nearly 20,000 global consumers from the IBM Institute for Business Value.
However, more than half of respondents said they are eager for AI enhancements such as AI applications (59%) and virtual assistants (55%). And 52% are interested in receiving information, advertisements and offerings from stores that are relevant to their specific interests.
According to the “Revolutionize retail with AI everywhere” study, four in five respondents who haven't used AI technology for shopping reported an interest in trying it. But only about one-third of responding consumers who have used virtual assistants are satisfied with the experience and nearly 20% were so disappointed that they don't want to use virtual assistants again.
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Shopper complaints
Looking more closely at what respondents don’t like about in-store and online shopping, the survey found that 37% want a greater variety of available products, 26% want more information about products and 26% would like faster checkout. Almost two-thirds (65%) of respondents are using mobile apps while shopping.
Examining online shopping shortcomings, the survey indicates two-thirds of respondents discover new products via the web. But many cite challenges online finding the products they want (36%), not having enough information about products (33%) and a cumbersome return process (33%).
Economic issues
Six in 10 respondents said inflation has impacted how they shop, with 62% saying that price is a top reason they switch stores or brands. In addition, respondents are seeking flexible payment options, with 55% desiring more varied payment options and 46% reporting they would like to pay for their purchase in installments.
“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. "We are seeing that today's consumers, faced with more choices and channels than ever, are increasingly making their purchasing decisions based on the cost and the quality of experiences that retailers provide. 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. Leveraging advances in AI technologies, retailers can forge ahead into a new era of commerce and fulfilment, leading with innovation to create shopping experiences that are intuitive, unified, personalized and efficient."
The IBM Institute for Business Value, IBM's thought leadership think tank, surveyed 20,000 consumers across 26 countries on their digital habits, their use of AI and generative AI, and their expectations for brands. Responses were analyzed by age group, income and purchasing habits across product categories.