It’s that time of year when holidays are just around the corner, and deal days are popping up left and right. With 43% completing at least half of their holiday shopping during deal day events, it’s not likely that consumers will turn down a discount, especially in today’s economic climate. However, just because they’re shopping doesn’t mean they’re satisfied with their purchases.
Despite the high participation around deal days, there’s also record dissatisfaction and returns. As a result of poor product quality, unclear information, and misleading photos, 69% of shoppers have returned deal-day purchases, straining trust when it comes to online purchases. This year, with rising prices and rapid AI adoption, consumer expectations are shifting in tandem.
Consumers aren’t just spending money on anything they get a discount on, but going to great lengths to uncover product information if retailers don’t show consistent results. They’ll gravitate towards the brand that showcases the most consistent, accurate, and personalized experience. Without that, retailers are at risk of falling behind.
Deal Day Dilemmas
Opening a package you were excited to receive and being disappointed by what’s inside is something no one is a stranger to. When an item is nothing like what you were expecting, it’s disappointing to say the least. It’s a frustration that consumers aren’t putting up with anymore. Knowing that deal day returns are a common phenomenon, it’s crucial to look at what’s causing this trend.
Out of those who make returns, 30% cite poor product quality as the primary reason, followed by 17% saying the product didn’t match the description and photos presented online. Between the mismatched information and unreliable online visuals, it’s clear deal day shoppers are encountering poor product experiences. Unreliable product information is just a major pain point for online shoppers, but leads to eroding customer trust. If product information is incomplete when thinking about making a purchase, 77% of consumers will abandon the purchase, showing the power of information – or lack thereof.
However, lacking product information is just one piece of the puzzle. With access to AI tools and endless online resources, shoppers are just getting smarter. If you aren’t prepared with all the answers, shoppers will find the information for themselves, and retailers must be prepared to beat them to the punch to retain loyal customers.
Meeting Smart Shoppers Where They’re At
Consumers are becoming smarter when it comes to purchasing decisions. With access to extensive online searches and AI to assist with any needs, shoppers have the means to educate themselves on product information. Through the data, it’s clear that consumers who are informed and cautious are quick to walk away when descriptions don’t add up.
Beyond basic product information, consumers are paying more attention to reviews, with 45% abandoning a purchase after reading negative reviews. Retailers must operate under the assumption that smart shoppers are doing their own audits across channels to make decisions. It’s easier now than ever to compare data and product insights through AI recommendations.
With AI rising to shape more shopping experiences, from personalized recommendations to checkout services, retailers who maintain accuracy and transparency will have a competitive advantage.
Ensuring the product experience meets the mark
To come out on top this holiday season, retailers can take steps to ensure consumer trust is maintained through strong product experiences while improving conversion rates. Getting product data in line is the most important first step to take – and AI can make it seamless. Integrating AI is a game-changer in maintaining consistent data environments and overall quality, streamlining data to ensure no gaps exist across channels, minimizing the chances of returns.
Another key point is product transparency. Customers crave all the context they can get. Having extensive product descriptions on materials, sourcing, etc., can make all the difference when it comes to trust. If shoppers can’t easily find that information, they’ll dig for it. Reinforcing transparency as a top priority will not only lead to more immediate purchases but long-term customer loyalty.
Finally, using AI responsibly is key to informing and enhancing customers’ product experiences. AI shouldn’t entirely replace human oversight when it comes to data and product recommendations, but with one third of consumers using ChatGPT to make purchases and 49% of Americans saying AI recommendations influence their buying decisions, using AI in the product experience is critical to driving success and keeping up with consumer expectations.
Combining AI adoption with transparency and strong foundational data is a recipe for success this seasonal shopping and deal days. Giving consumers the information they desire upfront allows them to make the most confident, informed decisions. Despite tighter wallets, brands that take on this task will be rewarded with loyalty, even if it’s at a higher price.
Conclusion
When it comes to holiday returns, the simple truth is most returns and missed sales can be routed back to inconsistent product data – something that’s easily avoidable. In a time where budgets and product quality are top of mind for consumers, retailers can’t risk skimping out on the product experience. Shoppers continue to get smarter, ditching brands that don’t have consistent product information.
As the retail landscape evolves with AI dominating and consumer expectations shifting, shoppers will gravitate towards reliable brands’ consistency and accuracy, regardless of the platform they’re shopping on. At the end of the day, retailers who prioritize product data accuracy now will dominate, catering to the next generation of smart shoppers.
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