Salesforce’s latest Connected Shoppers Report highlights the pressures retailers are facing, including rising customer acquisition costs and increased returns, which are squeezing margins. To adapt, retailers are prioritizing AI and unified commerce strategies that streamline operations and enhance customer experiences. As consumer shopping behaviors evolve, physical store purchases are declining, while digital shopping is spreading across various platforms. Retailers are increasingly investing in AI to automate customer service and enhance operational efficiency. Interestingly, shoppers, especially younger generations, are open to integrating AI into their buying journeys, emphasizing the need for trust and transparency. Retailers must establish a solid technological foundation and address shopper concerns to thrive in this new AI-driven retail landscape.
Salesforce’s latest Connected Shoppers Report reveals the challenges and strategies shaping the retail landscape today. Retailers face intense pressure from various fronts, including rising customer acquisition costs, inflation, and increased competition, forcing them to adapt quickly to changing consumer behaviors and preferences.
To efficiently navigate this dynamic environment, top retailers are turning to artificial intelligence (AI) and unified commerce. These strategies help streamline operations and maintain profitability without significant additional costs. When sales channels, customer data, and operational processes are integrated into a single platform, retailers can create smoother shopping experiences across both online and physical stores.
However, the shopper journey is becoming more complex. While physical stores remain important, their share of purchases is dwindling, predicted to drop from 45% in 2024 to 41% by 2026. Consumers are spreading their digital spending across various platforms, making it essential for retailers to adapt accordingly.
In response, a significant majority of retailers (76%) plan to further invest in AI, particularly in customer service. AI agents are now handling inquiries, tracking orders, and managing returns. This shift allows human representatives to focus on more intricate customer interactions.
Interestingly, shoppers themselves are embracing AI in their shopping experiences. Around 39% of consumers, with a higher percentage among Gen Z (54%), are utilizing AI for product discovery. This shows a growing acceptance of AI solutions that enhance convenience and optimize loyalty programs.
To build trust with shoppers, retailers must prioritize data privacy, transparency, and the option for human customer service backups. As both consumers and retailers move toward an AI-driven future, success hinges on a seamless integration of technology that meets evolving consumer expectations.
In conclusion, the retail industry is at a pivotal moment. By embracing AI and unified commerce, retailers can respond to the demands of the modern shopper while improving their operational efficiency. The path forward is clear: a connected approach will be crucial as the retail landscape continues to evolve.
Tags: retail trends, artificial intelligence, unified commerce, consumer behavior, shopping experience
What are the key retail trends for 2025 according to Salesforce?
Salesforce highlights trends like increased use of AI for personalizing shopping experiences, more focus on sustainability, and seamless online and offline shopping integrations.
How will AI change the retail landscape by 2025?
AI will help retailers better understand customer preferences, predict buying behavior, and enhance customer service, making shopping more personalized and efficient.
What role does sustainability play in future retail trends?
Sustainability is becoming essential. Retailers will focus on eco-friendly products and practices to meet customer demand for responsible shopping options.
How will customer experiences be improved in retail by 2025?
Retailers will use advanced technologies, like AI-driven chatbots and virtual reality, to make shopping faster, easier, and more enjoyable for customers.
Are small retailers also adapting to these trends?
Yes, small retailers are adopting these trends too. They are using new tools and technologies to compete better and provide great customer experiences, just like larger retailers.