No personalization without AIArtificial Intelligence (AI) is essential to optimize prices in online stores, based on factors like seasonality, localization, and users’ demand. More than that, AI ensures a personalized customer experience by making more strategic use of customer data and preferences. Already in 2021, marketing and sales were the main business areas French retail companies used AI for, followed by automation of processes. Although human-like performance of AI might still be flawed, AI-powered tools perfectly execute repetitive tasks such as the running of recommender algorithms based on product recommendations. In France, roughly four in ten consumers wished for personalized product recommendations when shopping online, making it one of the most wanted e-commerce innovations.
Interested but skeptical consumersInnovations appeal to consumers, especially younger ones, if they make their shopping experience better. In France, less than one in ten shoppers had tried out products virtually in 2022, but the percentage of those considering augmented reality (AR) as valid tool to have better understanding of product characteristics is much higher. French consumer opinions suggest the metaverse still remains a space where tech companies and retailers should be present to engage and entertain shoppers rather than to sell them products. Still, the potential of Gen Z consumers tempted by shopping on the metaverse deserves some attention.
More innovation could be user-friendly but might be misperceived. Most French consumers still consider sophisticated systems of authentication to finalize payments quite unsafe. Recent survey on consumer awareness about voice payments and payments authorized via facial recognition indicated a skepticism that could perhaps be difficult to fight. The trend observed in payment processes aligns with a certain mistrust in e-commerce sites to protect consumers’ personal data, leaving retailers with the open challenge of guaranteeing a safe online shopping experience.