Just under a third (32%) of shoppers crave the level of personal service that in-store shopping provides, according to the findings of the latest EY Future Consumer Index, which surveyed more than 23,000 consumers across 30 countries.
It found that while technology continues to transform consumers' retail experience, people continue to return to stores for reasons that technology can't satisfy – some 57% of shoppers surveyed want to see, touch and feel items before they buy them, while more than two thirds (68%), value in-person advice before making a high-value purchase.
Elsewhere, three fifths (61%) said that they would visit a physical retailer to avail of a promotion that is not available online. At the same time, however, 68% said that they are happy to receive and trust offers and promotions that have been personalised by AI.
'A Powerful Ally'
“Technology is not the enemy of human interaction; rather it can be a powerful ally, and consumer companies that use it to support a human-centred experience are more likely to succeed," commented Kristina Rogers, EY Global Consumer Leader.
"Companies must not only leverage data and analytics to gain consumer insights and anticipate future needs, but also to uncover points of friction and customer dissatisfaction that need to be addressed."
Customer Service Gap
The Future Consumer Index also found that there is a customer service gap when it comes to the digital shopping experience, with 26% of respondents saying that getting a refund or making an exchange is a source of frustration when shopping online.
In addition, close to a third (30%) note that poor customer service or support, or difficulty connecting with a customer service assistant online, represent a significant pain point.
“Striking the right balance between using technology to spot and resolve these challenges early, along with customer service training that is responsive, empathetic and creates value for the consumer, is key," Rogers added. "AI-led product recommendations can deliver incremental sales, but they won’t resolve more complex, service-oriented customer needs. Investing in people, both in terms of experience and knowledge, is equally as important as investing in technology, and they must go hand in hand.”
At-Home Consumption
At the same time, the report indicates that the home continues to be valued highly by consumers as the centre of consumption.
Spending has decreased in areas such as grocery deliveries (38%), streaming services (35%), fashion (35%), beauty (37%), and consumer electronics (41%). Instead, many consumers are adopting a more grounded lifestyle, with 68% planning to reassess how they spend time on what they value most.
For instance, 31% plan to entertain more, and nearly half (47%) intend to cook more at home, compared to 29% and 39% respectively at this time last year.
Read the full EY Future Consumer Index here.
