Retailers invest in GenAI and media networks

Over 90% of retailers are investing in AI to improve the shopping experience and either have an active retail media network or plan to have one within two years.

Meanwhile, over 80% of shoppers expect consistent engagement across departments. 59% say they have now made purchases on social media, almost four times as many as in 2021.

The figures come from the latest edition of Salesforce’s Connected Shoppers Report based on a survey of 2,400 shoppers and 1,125 retail decision-makers across North America, Europe, South America and Asia-Pacific.

Welcome to the “phygital world.” The digital and physical elements of the shopping experience are becoming ever more integrated. Shoppers are splitting online and in-store purchases almost evenly.

• 60% of shoppers say they have used their mobile device while in the store (shop assistants are using mobile devices more too).
• 74% of customers say three bad experiences are enough for them to abandon a brand.
• 60% of retailers estimate they are in the planning or execution phase of their unified engagement platform journey.

Dig deeper: Criteo to use image recognition to help connect online and offline channels

Shopping at “the edge.” Increasing numbers of shoppers expect brands to meet them in environments outside the brand’s own physical and digital properties. These include social media, messaging apps and live streams or live chats. 50% of shoppers say they discover products on social media and the number converting on social media has soared over the last two years.

Shoppers are now consistently using these “edge” channels more for purchasing than for customer service.

Shoppers and retailers eye generative AI. Shoppers are starting to use GenAI to spark inspiration, from getting ideas for outfits to creating meal plans. Right now, “somewhat interested” beats “very interested,” but 17% say they have already used the technology on the way to a purchase.

Retailers see possibilities for creating more personalized shopping experiences, including generating product recommendations for assistants to make in-store and conversational digital shopping assistants.

Loyalty data helps drive revenue. Retail media networks use loyalty and transaction data to sell high-value ad inventory on a brand’s own digital properties to third-party brands. That means revenue for the brand driving the network, sales for the advertisers and personalized offers for customers.

54% of retailers already invested in media networks, another 40% plan to offer them in the next two years.

Read more about the report here.

Why we care. Not for the first time, we’re saying that the old hard line between the digital and the physical has broken down. Thanks to portable mobile devices and the Internet of Things, the physical world has become so infused and connected with the digital that distinctions between them seem increasingly pointless. And we didn’t even need Google Glass to get there.

This situation is changing retail rapidly. The lessons of the pandemic — researching, discovering and purchasing online — are not forgotten. Rather, we’re bringing them with us when we go to the store.