Coveo issued its first Relevance Report in January 2021, which found that retailers often fail to meet shoppers’ rising expectations. Twelve months on, the company sought to find out whether the situation had improved. The company’s latest report found that only 6% of customers think online shopping experiences are always relevant. Many retailers still struggle to deliver the relevant online shopping experiences their customers expect.
Despite pandemic restrictions loosening in the past year, online is still the venue of choice for many shoppers. And relevant, personalised online shopping experiences have become table stakes. Coveo’s report found that 93% of customers expect the online experience to be at least equal to, if not better than, in-store, a 3% increase from last year’s report.
Brian McGlynn, general manager Commerce at Coveo says, “Our inaugural Relevance Report found retailers often fail to meet shoppers’ expectations. One year later, we’re realizing that the relevance challenge remains pervasive. There is a dichotomy in that people want personalisation – even though they like to shop anonymously. Coupled with the future of third-party cookies, addressing this is top of mind for many retail executives.”
2022 Relevance Report: Ecommerce key findings:
Only a Fraction of Shoppers Start on a Brand’s Site
- When asked where they typically start their journeys, 56% of shoppers cited more than one answer between Amazon, a search engine, and a brand’s site.
- 44% gave only one answer – and divided equally between Amazon and search engines. Only 16% said they start on a brand’s site.
Personalisation Impacts Top & Bottom Lines
- Online shoppers said they would be willing to pay more if they could find what they’re looking for in just a few clicks (52%).
- If they received supporting content that adds value to products (48%), or
- If they were offered value-add services that elevate the experience (69%).
Gen Z Is Defining the Future of Relevance
- Gen Z shoppers are more likely than other generations to pay more if they could find products quicker. (60% of Gen Z, 52% overall).
- if they could discover something new (54% of Gen Z, 44%). Or if they received tailored recommendations (53% of Gen Z, 44% overall).
- Gen Z is also the generation least loyal to retail behemoths. 53% of Gen Z respondents listed reasons they would veer away from Amazon. This included that they don’t trust reviews and prefer other brands.
Alleviating Data Privacy Concerns Starts with Trust
- As attitudes about data privacy continue to evolve, trust between customers and retailers is essential. Despite 59% of respondents saying they are concerned about how their data is being used by retailers. 51% confirmed they would still be more likely to share personal data with brands they trust.
40% of Shoppers Remain Anonymous Through Checkout
- Shoppers demand personalisation, but often hide their intent. 40% of customers said they choose to remain anonymous during online shopping and when using guest check out. This “cold start shopper” problem needs to be addressed.
Methodology
As part of Coveo’s 2022 Relevance Report: Ecommerce, Arlington Research was commissioned to undertake a study across UK and US. The research sought to discover eCommerce, Customer Services, and the Digital Workplace trends. The survey comprised a nationally representative sample of the working population across both the UK and USA. It contained 4,000 adults aged 18+ taking part, evenly distributed between each country. All respondents were people who use a computer for work, as a part of companies which contain more than 250 employees. This first instalment focused on trends relating to E-commerce.
Enterprise Times: What this means for business.
According to Coveo Research, slow site, bad navigation, irrelevant search, shoppers’ patience — and brand loyalty — is at an all-time low. Meanwhile, expectations are soaring. The company surveyed 4,000 consumers to see where they’re feeling let down, spot opportunities. The report also provides information for planning strategies to capture the hearts, minds, and wallets of today’s (and tomorrow’s) shoppers.
The most startling headline figure was that only 16% of customers start their journey on the brand’s site. This should really make retailers and brands think sharply about their entire user experience. Too many of them are only thinking about the journey from the homepage to the checkout. As a result, they are missing out on the real opportunities of unified commerce.
