As per the latest global survey, ‘The 2022 Commerce Innovation Report’, by commercetools, one of the global leaders in next-generation digital commerce solutions – it is reported that brands which do not leverage modern commerce platforms have been witnessing a decline in customer loyalty.
The survey that was conducted for over 300 global retail business leaders, is expected to raise awareness, and inspire businesses in the region to adopt and develop advanced commerce platforms empowered by Headless Commerce architecture.
Jen Jones, Chief Marketing Officer of commercetools, says, “Consumers are constantly redefining what the ideal customer experience feels like, given the abundance of options and the power of the internet at their fingertips. The brands with longevity are the ones that are taking this shift into account from both a technological and cultural perspective and are constantly evolving to meet customer demands.”
Furthermore, the most recent research details how a lack of innovation in the sector has harmed customer satisfaction, revenue, and brand loyalty. The study also highlighted how consumers frequently switch companies when they have unsatisfactory shopping experiences, a trend that is mostly driven by millennials and Gen Z.
If a brand’s online shopping experience doesn’t live up to their expectations, 73% of customers will switch. Furthermore, more than 50% of these customers select modern commerce experiences, which are characterized by evolving customer preferences, payment alternatives, and digital gadgets.
According to the research, more than 70% of respondents expressed fear that millennials, a generation with more than USD 2.5 trillion in disposable money, would change their purchasing patterns and patronize different brands. Gen Z and Gen X, which together account for 54% and 48% of the population, are the next generations.
About 40% of respondents also emphasized how difficult it is for their business to sell its products or services as a result of its present commerce solutions. Less than half of respondents offer numerous payment ways, and fewer still offer “Buy Now Pay Later” and cashback features, despite the fact that customers have shown a need for a range of payment alternatives.
“Change is constant in the modern commerce ecosystem. As a result, brands must be agile and meet customers where they are. This entails keeping a close eye on their customers’ purchasing behaviours and adopting the commerce experiences that best resonate with them. Anyone who thinks they can sit still and not evolve amid changing customer demands will soon find themselves out of business,” Jen adds.