The latest EY Future Consumer Index (FCI) reveals a growing trend among consumers who, despite the surge in online shopping technology, still value the personal service offered by physical stores. Surveying over 23,000 individuals across 30 countries, the report highlights that 32% of consumers prefer in-store shopping for its personal touch.
The study shows that while technology, including AI, has transformed retail experiences, it cannot fully replace the tangible benefits of physical stores. About 57% of shoppers prefer to see and touch products before buying, and 68% seek expert advice on significant purchases. Additionally, 61% of consumers are drawn to in-store promotions unavailable online.
Despite AI's role in personalizing offers, it falls short in certain areas. The report found that 49% of consumers are frustrated with ineffective smart chatbots, and 33% are concerned about biased AI recommendations.
The report underscores the necessity for a balanced approach, integrating technology with personal service. Kristina Rogers, EY Global Consumer Leader, emphasizes that while technology can enhance consumer experience, it should complement, not replace, human interaction. Companies must use technology to understand and resolve customer frustrations while investing in skilled customer service to address complex needs.
Additionally, the FCI notes a shift in consumer behavior towards home-based experiences. The pandemic has led to decreased spending on digital conveniences and an increase in activities like cooking and entertaining at home. This shift is reflected in a growing preference for private label products over branded ones due to cost concerns.
Rogers advises that businesses must adapt their strategies to engage with consumers' evolving preferences, combining digital convenience with the personal touch to meet both immediate and long-term needs. Retailers and brands need to innovate and provide value to maintain consumer loyalty amidst changing trends.
Download the study on EY's website
