Feature
The Gist
- Shopping at the edge. 59% of shoppers now make purchases on social media, a significant rise from 15% in 2021. Messaging apps like WeChat and Facebook Messenger have seen a 227% increase in shopping use since 2021.
- Generative AI's influence. 17% of shoppers use generative AI for product inspiration. 92% of retailers are boosting AI investments, with 59% using it to aid store associates in product recommendations.
- Personalization & customer service. Retailers' investment in personalizing customer communications has surged from 32% in 2021 to 57% in 2023. Poor customer service can deter 53% of shoppers, but excellent service can convert 94% into loyal brand advocates.
Understanding the nuances of consumer behavior is paramount for marketers and customer experience leaders, naturally.
The digital revolution, coupled with the rise of generative AI and the increasing demand for personalization, has reshaped the way consumers interact with brands.
Salesforce released today the fifth edition of its Connected Shoppers Report, interviewing 2,400 shoppers and 1,125 retail industry decision-makers worldwide. Whether you are in retail or not, we’ve uncovered insights that not only highlight the current state of the retail industry but also provide a roadmap for marketing and customer experience professionals looking to elevate their strategies.
Shopping at the Edge: Social Media, Messaging Apps and Live Streaming
Shoppers are increasingly expecting retailers to be present on platforms they frequently use, such as social media, messaging apps and live streaming services. The concept of "shopping at the edge" highlights the trend of consumers starting and often completing their shopping journeys outside of traditional retail spaces.
Social media is a significant starting point for many, with half of the shoppers discovering new products there. Notably, the percentage of shoppers making purchases on social media has surged from 15% in 2021 to 59% in 2023. That’s a pretty significant jump, and one marketers and customer experience leaders should pay attention to when designing ecommerce strategies.
Purchases through messaging apps like WeChat and Facebook Messenger have also seen a dramatic rise, with 36% of shoppers now using this method, a 227% increase from 2021.
Related Article: How Social Media Marketing Has Changed This Year
In-Store Digital Integration: Mobile Devices Put Into Action
About 60% of shoppers utilize their mobile devices in physical stores for various purposes, including product research, price comparisons, QR code scanning and checkout processes. Store associates are also leveraging mobile devices to enhance customer service by checking product availability, processing transactions and answering queries.
"This has caused retailers to evolve the focus from just on operating flawlessly at check out to engaging the consumer during check in," Rob Garf, VP and GM of Retail at Salesforce, said. "For retailers, equipping associates with mobile devices to engage shoppers, complete operations tasks and conduct transactions has become a priority. Today, an estimated 32% of store associates use a mobile device for their job, a share expected to grow to 41% in three years."
The Impact of Generative AI on Retail
Generative AI, which creates new content from existing data, is influencing how shoppers approach their buying decisions. Shoppers are keen on using generative AI for product research, recommendations and inspiration, with 17% already using it for product inspiration.
Retailers recognize the potential of generative AI in enhancing customer interactions by curating offers and improving digital experiences. A significant 92% of retailers are increasing their AI investments to enhance shopping experiences. Interestingly, 59% are already using generative AI to aid store associates in product recommendations, and 55% are exploring its use for online digital assistants.
"Generative AI can turn massive amounts of data into new and original content, and retailers are racing to adopt such technologies for its transformational impact on the shopping experience," said Garf.
One of the most tangible and impactful use cases for online operations, Garf said, will be content development. For example, he added, bringing together customer profiles with product attributes can provide the ability to automate the creation of product descriptions and promotions to target specific cohorts of customers.
"This not only cuts significant time out of the planning process, it also drives more relevant and personalized experiences for shoppers," Garf said. "Generative AI can also help retailers optimize inventory in the context of store design and execution. For example, if a brand needs to offload excess summer inventory by the fall without significantly eating into margin, generative AI can use customer data to determine the optimal price while recommending the promotional execution plan in each store — including the planogram, the signage and the display."
Retailers anticipate increased spending on digital channels, including social media, video and influencers. And generative AI is seen as a tool to boost content creation for various channels and automate the development of personalized marketing content, leading to cost and time savings.
Related Article: Can Tools Like ChatGPT Help Personalize Marketing Strategies?
Retailers' Focus on Personalization and the Technology Path
Personalizing customer communications is a top priority for retailers, with 93% investing more in this area. The use of customer data for personalizing shopper engagement has nearly doubled in two years, jumping from 32% in 2021 to 57% in 2023.
Retailers are increasingly adopting unified engagement platforms to provide consistent and personalized experiences across various touchpoints. While 60% are in the strategy or execution phase, a significant 59% still manage marketing, ecommerce and service functions separately, which can hinder a unified customer experience.
The Crucial Role of Customer Service
Poor customer service is a significant deterrent for shoppers, with 53% considering it the worst retail experience. About 74% of shoppers would consider abandoning a brand after three or fewer negative experiences. To prioritize brand loyalty and provide experiences that aligns with the shoppers’ preferences, one-third of retailers cite improved customer service as a top opportunity, according to Garf.
However, excellent customer service can convert shoppers into loyal brand advocates, with 94% more likely to repurchase based on positive service experiences.
About 57% of shoppers prefer digital engagement with retailers, with email, chat, social media and text being popular channels. For complex issues, service professionals still prefer phone interactions, with 81% choosing it for complicated queries.
Customer Loyalty Programs: A Double-Edged Sword
Customer loyalty program members typically spend more than other shoppers, making them valuable for retailers. About 58% of shoppers say a loyalty program influences their purchasing decisions with a particular brand or retailer.
The average number of loyalty programs a shopper belongs to has decreased by 21% since 2021. While 75% of retailers offer a loyalty program, many face challenges, including a lack of customer insights and the agility to seize market opportunities.
"With acquisition costs rising and marketing costs being scrutinized, it’s more critical than ever to create stickiness and increase share of wallet with existing customers," Garf said. "Retailers have three strikes and they’re out. Most consumer will abandon a brand after three negative experiences."
Knowing more than half (56%) of consumers are more likely to buy from a brand with a loyalty program, it’s time for retailers to evolve their approach to loyalty programs if they want to better connect with customers, according to Garf.
Webinar
Sep
25
CMS Briefing: A Live Look at What’s Next in AI-Driven Platforms
Learn how leading organizations are using AI‑driven tools to publish faster, personalize smarter and stay secure.
Register
Webinar
On demand
Ready or Not: How Data-First Organizations Are Unlocking Agentforce Potential
Learn how to cut through the noise, activate Agentforce and build a Salesforce AI strategy that actually delivers.
Watch Now
Webinar
On demand
AI in Customer Service: Faster Resolutions, Happier Customers
Don’t let rising demand burn out your team. See how to build a smarter, more resilient support org.
Watch Now
Webinar
On demand
From Hype to High-Impact CX Strategies That Actually Scale
Turn buzzworthy AI and outsourcing trends into measurable CX wins with fresh 2025 data.
Watch Now
Webinar
On demand
Insights to Action Rethinking the Contact Center for Real Business Impact
Join our exclusive webinar to hear CX executives share their innovative strategies for transforming service delivery.
Watch Now
Webinar
On demand
Accelerating Healthcare Ops with AI
Sign up to see how your peers are putting AI to work — and making it stick.
Watch Now
"When brands effectively leverage customer data to offer a shopper personalized incentives and rewards through their loyalty programs, they essentially build a 1:1 long-lasting relationship with the shopper," he said. "And the benefits of this can be great — both in terms of shopper spend and retention."
Conclusion: Transformative Phase for Retail Customer Experience
For marketers and customer experience leaders, the message is clear: adaptability, personalization and a keen understanding of emerging technologies are no longer optional — they're essential. As consumers continue to shift their shopping behaviors and expectations, brands must rise to the occasion by offering seamless, integrated experiences both online and offline.
The rise of generative AI, the importance of unified platforms and the ever-present demand for exceptional customer service underscore the need for a proactive and innovative approach. By harnessing these insights and staying ahead of the curve, professionals can not only meet but exceed the evolving demands of today's discerning shoppers.
