#66: UK shoppers have the lowest tolerance for bad eCommerce experiences

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This week, we’re looking at new research into the power of conversational AI in retail, UK shopper tolerance levels, and a look ahead on top market trends for 2024.

The Transformative Power of Conversational AI for Retail Use Cases

A new report from Kore.ai reveals a growing acceptance for AI-powered intelligent virtual assistants (IVAs) that meet customer quality expectations unfulfilled by legacy chatbots.The findings also depict a significant shift in sentiment for AI, with only a 7% difference between total ratings for IVA (70%) and all Live Agent modes (77%), for both simple and complex interactions.

When it comes to customer service in the retail industry, consumers prioritise convenience, ease of use and friendliness. Top retail use cases that customers want IVAs to help with, include:

• 72% product or brand search and information (prices, review ratings, other similar products, recommendations based on preferences)
• 72% specials, events Promotions and coupons (notifications, identifying best days and stores to shop, drop price alerts)
• 71% ordering and purchasing products and services
• 69% loyalty services (sign ups, status checks, management and use of rewards)

UK Shoppers Have the Lowest Tolerance for Bad Ecommerce Experiences Compared to Consumers Globally?

More than one third of UK shoppers say they have a higher likelihood than the global average to find a different site when encountering checkout frustrations or barriers, according to new consumer research by leading ecommerce technology company?Rokt?and Harris Poll. The study, designed to understand the changing expectations of today’s consumers, found that, overall, UK consumers had the lowest tolerance for bad ecommerce experiences compared to shoppers globally.

Key Findings:

Relevant experiences key to driving loyalty with UK shoppers

An impressive 67% of UK shoppers surveyed expressed the need for relevant offers during the checkout process, which is 10% higher than the global average.??

In the UK, 52% of consumers express a desire for increased availability of loyalty programs, compared to a global figure of 42% showing that Brits like to be rewarded for their commitment to brands.?

UK shoppers least forgiving when encountering eCommerce friction

British shoppers reported being less forgiving when it comes to encountering an annoying online shopping experience. Over one third (34%) of UK shoppers exhibited a higher likelihood than the global average (29%) to find a different site when encountering checkout frustrations or barriers, showing the potential loss of sale for many brands that get it wrong.?

Qualtrics Announces Top Trends in Market Research for 2024

The?2024 Market Research Trends Report?from Qualtrics finds that researchers are eager to embrace new technology in 2024 – but struggling to keep pace with AI, and burdened by the potential for fraud. At the same time, despite?cuts to global marketing budgets, organisations around the world are increasing their reliance on timely, thorough consumer research to inform strategy, increase profits, and understand what customers want.

Qualtrics asked more than 3,000 market researchers across 14 countries about the trends that will shape the research industry and how they will impact their organisations’ priorities in 2024.

Market research is ripe for AI innovation

Organisations are rethinking what research is capable of by increasing their use of AI to transform market research at scale. 47% of researchers are already using AI to quickly analyse large qualitative data sets from survey data, product reviews, focus group transcripts, and more, to identify trends and patterns and deliver meaningful business recommendations faster than human analysis could.

Remote and virtual research opens the door for deeper understanding at scale

87% of researchers report that more than half of their qualitative research is conducted remotely. Researchers say online research helps them get deeper, more nuanced feedback from an expanded pool of people, in a more cost-effective way than in-person methods.?

Better technology + better data = better decisions

Nearly two-thirds (62%) of researchers say their company depends on their research and insights significantly more today than in the past 2 years, and researchers report their budgets are on the rise, despite marketing budgets?remaining flat?year-over-year.

• Gartner?analysts affirmed?that AI and the emergence of generative AI (GenAI) are shifting how humans and machines interact. This is resulting in two key focus areas for CIOs as AI becomes an enterprise initiative, not just an IT initiative. Gartner predicts that by 2025, GenAI will be a workforce partner for 90% of companies worldwide.
• Women aged 45-60 are still being ignored, overlooked and misrepresented by advertisers according to a new in-depth study into marketing to midlife women being released by?The Behaviours Agency.?According to the research, 69% of women aged 45-60 feel invisible to advertisers. Whilst 62% think that ads rarely show someone that they can relate to.?More than half (54%) think that adverts target their insecurities. Almost three quarters (72%) believe that ads are setting unrealistic beauty standards for women in their age bracket. 75% think that adverts focus too much on physical appearance over wellbeing.

Acxiom Research Identifies Five Top Customer Experience Trends for 2024:?

• Shoppable Ads

• Proactive Customer Service

• Healthy Acquisition & Retention

• Predictive Personalisation

• Sustainable CX

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