ANZ customers demand personalised online shopping but fear AI influence

New findings released by global commerce company commercetools have highlighted a notable gap between consumers in Australia and New Zealand (ANZ) craving more personalised, seamless retail experiences and their suspicions surrounding the role of artificial intelligence (AI). It seems there is a distinct disconnect with consumers left wanting more from online retailers and uncomfortable with the impact of AI on their shopping experience.

A considerable 70% of ANZ shoppers expressed a greater likelihood to shop with online retailers providing personalised experiences, led predominantly by millennials and Gen Y at 88%. However, current consumer frustrations include inaccurate product photos and descriptions (36%), sudden unavailability of preferred products (32%), and lack of real-time inventory information (24%). Notably, 62% of ANZ shoppers have anxieties about AI influencing their shopping behaviours towards unneeded purchases, while 73% worry about AI taking over roles in online customer service.

Bruno Teuber, Chief Revenue Officer at commercetools, notes that there's an escalating demand for simple checkout and payment processes, enhanced digital navigation, and instant stock information. Yet, he emphasises, "Consumers' hesitancy with AI underscores the importance of striking a delicate balance between innovation and addressing consumer concerns through mutually beneficial technology."

Despite the ongoing cost of living crisis, ANZ shoppers place significant value on superior, personalised online shopping experiences, with 56% willing to pay more for such experiences. Further emphasising the crucial role of tailored experiences, Florian Pasquier, Chief Technology Officer at online automotive platform Carma, states, "By offering tailored experiences that resonate with individual shoppers, retailers can foster deeper engagement, enhance loyalty, and thrive amidst economic fluctuations."

Another interesting consumer concern emerging from the commercetools report centres around the checkout experience. High shipping costs (70%), lack of value-for-money offerings (48%), and concerns over security and privacy (46%) all contribute to cart abandonment, highlighting the importance of a seamless checkout experience. As a solution, commercetools launched its Checkout platform last year, providing retailers with the tools to create a smooth, intuitive checkout experience ultimately increasing customer satisfaction and conversion rates.

When it comes to other technologies, the research identified a reliance on social media throughout the shopping journey, with 66% of shoppers engaging with brands on social media for shopping purposes. Moreover, Gen Z is driving the trend in social commerce, with an impressive 79% engagement rate. In contrast, immersive technologies like augmented reality (AR) and virtual reality (VR) have only been utilised by 18% of ANZ shoppers to date, evidencing a significant opportunity for further adoption and integration into online shopping platforms.

Overall, ANZ consumers are calling for simple, personalised online retail experiences, but their hesitancy around the role of AI cannot be ignored, commercetools states. The demand for seamless checkout processes and the willingness to pay more for personalised experiences demonstrates the significant opportunities for retailers to connect with consumers and drive growth in this digital age.