As we reach a time of peak e-commerce, it’s more important than ever for retailers to understand their customers and the journeys that each one is on, and then map product data, images, and experience appropriately, says Justin Thomas, VP Sales EMEA North at Akeneo
For years, the prevailing narrative has been that eCommerce will continue to grow indefinitely, with physical stores fading into irrelevance. The surge in online shopping during COVID-19 seemed to reinforce this belief, as consumers had no choice but to turn to digital channels. However, the reality today tells a different story.
Retail has come full circle, with physical stores regaining their dominance. In fact, according to Bain and Company, between 70% and 75% of purchases now happen in-store, putting us right back where we were before the pandemic. However, what has fundamentally changed is not where people shop, but how they shop. Consumers have become more digitally savvy, more channel-agnostic, and less loyal to any single purchasing method or brand.
The age of the channel-agnostic shopper
We are not witnessing the demise of e-commerce, but rather the emergence of a new retail era where consumers fluidly move between channels. The idea of a purely online shopper is becoming obsolete. Instead, people make shopping decisions based on their immediate needs, seamlessly blending online and offline interactions. A customer who regularly shops online may still prefer to visit a store for certain purchases. Likewise, an in-store shopper may opt for home delivery when it suits them. Brands and retailers, therefore, must focus on providing a seamless and friction-free experience across all touchpoints.
Speed matters: the shrinking window of purchase confidence
The time between product discovery and purchase is shrinking, and brands/retailers must understand at what point customers feel confident enough to buy. One simple yet powerful strategy is to ask customers directly: “How long should it take to complete a purchase?” Many brands and retailers may be over-investing in prolonged engagement tactics when consumers may just want a faster checkout experience. Sometimes, the best service a brand or retailer can offer is to step aside and let the customer make a frictionless purchase.
However, they do expect consistency, whether they shop via mobile, desktop, social media, or in-store, which is why product information, including descriptions and images, must be uniform and accurate. Even minor inconsistencies can erode trust and lead to lost sales. As commerce expands beyond traditional retail – imagine, for instance, your doctor selling wellness products – maintaining a seamless brand experience across all channels is crucial.
The role of AI in retail: fixing the basics first
Generative AI has an important role to play in ensuring that products, descriptors, and journey structures are consistent and relevant across all channels. However, there is a perception that AI is transforming retail primarily at the customer-facing level, but the truth is that its greatest impact today is on operational efficiency. AI is being used to optimise supply chains, regulate and generate content, and improve back-end processes. Before retailers focus on applying AI to customer interactions, they must first ensure they have clean, high-quality data.
Rather than rushing to implement AI chatbots or virtual assistants, brands and retailers should first use AI to refine, clean, and optimise product information, inventory management, and logistics. Once these foundational elements are in place, AI can be more effectively deployed to enhance the customer experience, improving personalisation and engagement.
The future of retail is not about e-commerce replacing stores or vice versa, but it is about providing consumers with what they want, when and how they want it. The brands and retailers that succeed will be those that understand the evolving nature of customer behaviour for every scenario and are prepared to invest in technology that provides consistency in product data but flexibility in the experience and the shopping journey.
