Online spending is expected to top $275 billion this holiday season, and brands are paying close attention to how AI will shape consumers’ expectations of the digital shopping experience.
A growing number of consumers are using AI in their shopping journey, though adoption remains relatively limited. Gartner found that 13% of consumers say they will use it for holiday gift shopping inspiration, while another survey from Bain found that one-quarter of consumers plan to start their holiday shopping journey using AI platforms, up from 17% last year.
Consumers are turning to AI because it helps with decision-making, not because the experience feels superior to traditional browsing options, according to Emily Weiss, senior principal analyst at Gartner. The uncertain economy makes saving money important — and consumers see AI as a tool for finding the best deals.
“It's not that it has replaced or made the experience so much greater,” Weiss told CX Dive. “I think it's allowing people to be more intentional with the smaller budget that they have.”
AI assistants are adding to, rather than replacing, the traditional gift shopping journey. They may start with AI, but eventually will land at a brand’s website. Brands then need to ensure their website experience is ready to welcome these well-informed shoppers.
AI is fragmenting, not replacing, journeys
As AI hits the mainstream, it’s adding a new path to discovery for some shoppers, rather than changing how customers shop in general.
“It's assisting where assistance is wanted, so we're still seeing people browse specific categories,” Amie Owen, chief client officer at Flywheel, a digital commerce media and technology company, told CX Dive. “It's an additional layer that can persuade someone one way or the other.”
Traditional search and Amazon are still far and away the most popular channels for product discovery and inspiration, according to Weiss. And when customers do use AI, they still look elsewhere for additional information.
Gartner’s research has found that consumers who use AI tools for gift inspiration tend to use about 4.5 sources of inspiration on average. In comparison, those who don’t use AI for gift inspiration use about 3.2 sources on average.
The intent-based nature of AI tools is changing how consumers approach the inspiration phase, according to Weiss. They can now use natural language to better specify what they’re looking for, which means they start the actual shopping process with a sharper selection of ideas.
“It's about narrowing down and getting the best of the best,” Weiss said. “Let's say you’re looking for the coolest toys for this season for a 6-year-old, trying to maybe find the thing that you didn't know existed, because there's a whole world of new products available every season, every holiday season.”
What customers don’t want is AI making a purchase on their behalf, according to Weiss. Actually clicking that buy button or paying for an item at the register is the best part of the experience for many customers, especially when it comes to purchasing a gift.
“They either aren't there yet and haven't proved their value to consumers, or I think consumers don't want to take away that dopamine hit of the actual purchase part of the purchase process,” Weiss said. “If you do all the work of the inspiration, the research, and the price comparison and finding the right thing, don't take away the dopamine hit of actually buying the thing.”
Smooth landings are essential
Customers only use AI early in their shopping journey, which gives brands control over the remainder of the experience. Websites and apps need to be up to the task of supporting customers who have already done their initial research.
With AI handling the first steps of the customer journey, many shoppers are arriving on brand websites ready to make a purchase, according to Owen. The path to completing the transaction needs to feel as smooth and frictionless as possible.
“Candidly, a lot of websites aren’t necessarily there yet,” Owen said. “What we're trying to look at is how many clicks — or how many screens or how many touchpoints — do you actually have a consumer go through before they have to make that purchase?”
For example, if someone arrives via AI suggestion but needs to log onto the site to complete a purchase, they are very likely to abandon that purchase, according to Owen. Adding something as simple as an add to cart button makes the process much easier.
Websites need to look ready for the holidays as well, according to Owen. This doesn’t mean they must be decked out in green and red, but they should acknowledge the season to some degree.
“If your retail website isn't necessarily up to par, meaning like if it's not talking about holiday deals and it's talking about fall football deals, you're a little lost,” Owen said.
Website experiences should take customer intent into consideration. If they arrive with a specific product in mind, they don’t want to be interrupted with pop-ups about coupons or deals, according to Owen. However, if they’re still browsing, they are more likely open to that kind of experience.
While brands can’t know exactly how an individual customer is going to arrive at their site, they can use data to understand their customers’ general habits and needs, according to Owen. For example, brands that specialize in high-end electronics are likely to see customers continue to explore options after they arrive.
