Customers are quick to flee slow-to-innovate brands with lagging commerce experiences, with millennials and Gen Z leading the migration, according to the 2022 Commerce Innovation Report from leading provider of headless commerce, commercetools.
The survey found that almost three-quarters (73%) of shoppers will take their business elsewhere if a brand’s commerce experience does not meet their expectations, and over half prefer modern commerce experiences, defined by evolving customer preferences, payment options, and digital devices. Yet, 45% of respondents say they only dedicate a minimum amount of their budget to improving or expanding commerce capabilities.
Nearly three-quarters of respondents (74%) recognise that failure to adopt emerging commerce solutions will negatively impact areas of the business, with 40% of respondents recognising that their company’s current commerce solutions hinder the sale of their products or services.
Over one-third of businesses are struggling with the ramifications of an outdated commerce solution, signifying the impact a lack of innovation has on customer experience, sales, and brand loyalty. More than half of respondents (52%) said they’ve decided not to implement a new commerce capability due to budgetary constraints.
“With endless options and the power of the internet at their fingertips, consumers are continuously redefining what the ideal customer experience looks like. The brands with longevity are the ones that are taking this shift into account from both a technological and cultural perspective, and are evolving to meet customer demands,” commercetools chief marketing officer, Jen Jones said.
“Change is constant in the modern commerce ecosystem. Brands need to be nimble and meet customers where they are. This means having a finger on the pulse of their customers’ shopping behaviors and adopting the commerce experiences that resonate the best among them. Anyone who thinks they can sit still and not evolve amid changing demands will be out of business shortly.”
According to Sephora chief technology officer, Sree Sreedhararaj, commercetools enables the retailer to not only scale quickly and efficiently, but constantly refine experiences that customers expect and are loyal to.
“Sephora pioneered prestige omni-retail, and we know that continued investment in commerce innovation is key to our sustained growth,” he said.