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SALES

FORCEWhatYou’llFind

inThisReportFor

the

sixth

edition

of

the“Connected

Shoppers”report,Salesforce

surveyed8,350shoppers

and1,700retailindustry

decision-makers

to

learn

steps

companies

aretaking

to:•Transform

the

role

of

the

physical

store•Connect

seamlessly

with

shoppers

wherever

they

are•UseAIagentstochange

howthey

do

business•Build

loyalty

beyond

points-for-purchase

programsDue

to

rounding,not

all

percentage

totals

in

this

reportsum

to100%.All

comparison

calculations

are

made

from

totalnumbers(notrounded

numbers).Datainthisreportarefromtwodouble-anonymoussurveys

conducted

from

November27through

December

26,2024.Respondents

represent21countries

across

fivecontinents.All

respondents

are

third-party

panelists.For

further

survey

demographics,see

page35.8,350shoppersand

1,700retailindustrydecision-makerssurveyedworldwideSalesforceResearchprovidesdata-driveninsightstohelp

businessestransformhowtheydrivecustomersuccess.

Browseallreportsat/research.CONNECTED

SHOPPERS

REPORT’

6TH

EDITION2*Single

Sample

Group†Single

Sample

Group

Flag

icons:Getty

ImagesContentsExecutive

Summary.

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.04Introduction

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.05Chapter

1:Stores'

Evolving

Roles

EnhancetheShoppers'Journey

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.07Chapter2:

UnifiedCommerce

BringsOpportunitiesandChallenges....

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.14Chapter3:AIAgents

Poisedto

Redefine

Retail.

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.19Chapter4:

Rewards

Programs

PutaCheckon

DecliningShopper

Loyalty

...

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.28

LookAhead:

Supplemental

RevenueStreams.

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.33Survey

Demographics

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.35SALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION3Stores

I

Evolving

Roles

Enhance

the

Shoppers

I

JourneyWhiledigitalchannelsmultiplyandsocialcommercegainsmomentum,

physicalstorestakeonexpandingrolesasexperiencehubsandfulfillmentcentersthatbridgedigitalandphysicalshopping

journeys.Shoppersestimate41%oftheirpurchasevolumewillcomefromphysical

stores

in2026,down

from45%in2024.UnifiedCommerce

BringsOpportunitiesandChallengesCompaniesareworkingtoconnectonlineandofflineexperiencestounderstandshoppersandservethemseamlesslyacrosschannels.Retailersareupgradingsystemsandempoweringstoreassociatesto

improveefficiencyandprovidemorevaluetoshoppers.Eighty-eight

percentofretailerssayunifiedcommercewillbeveryimportant

or

criticaltotheir

businessobjectivesoverthenexttwoyears.AIAgents

Poisedto

Redefine

RetailThenewestiterationof

AI—AIagents—greatlyexpandsthetech-nology'simpactbyindependentlyrespondingtocustomerinquiries,

managinginventory,andmore.Seventy-fivepercentofretailerssay

AIagentswillbeessentialforacompetitive

edge

by2026.Rewards

Programs

PutaCheckon

DecliningShopper

LoyaltyBrandloyaltycanbefleeting,especiallyamongyoungershoppers.Companiesarerespondingbyreimaginingcustomerserviceandrefining

theirrewardsprograms.Eighty-fourpercent

of

loyalty

programmemberssayprogramsmakethemmore

likelyto

repurchase.Retail

is

transforming

as

AI

agentsemergeasthenewestinnovationin

the

artificial

intelligence(AI)age.Agentscanfunctionasscalabledigitallabor,integrated

across

every

team,thatindependentlyexecutetasksrangingfromcustomerservicetomarketingtoinventorymanagement.Toenablethisnewwaveofinnovation

andefficiency,retailersare

breaking

downdatasilosandreplacing

legacy

systemswithintegratedsolutionsthatcansupportcurrentandfuture

AIcapabilities.Thesestrategicimprovementsenable

seamless,connectedshoppingexperiencesthatpositionretailersto

thriveinanevolvingmarketplace.010203SALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION4ExecutiveSummary04IntroductionSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION5Introduction:AIAgentsandUnifiedCommerceUnderpinRetailIsDigitalTransformationWhathappenswhencompetitionintensifies

amidrisingoperatingandcustomeracquisitioncosts?

Forretailers,itadds

uptosignificant

pressure

on

profit

margins.As

retailers

grapple

with

these

and

otherheadwinds,they

view

digital

transformation—especiallyfromAIandunifiedcommerce—as

theirgreatestopportunity.Moreecommerce

sales,improved

customer

service,and

betterassociate

productivity

are

also

top-of-mind.RetailersviewleveragingAIas

their#1opportunity.Retailers

BalanceStrategic

PrioritiesasCost

Pressures

MountTopRetailIndustry

Challenges

Increasedcompetition

Inflationandhighcosts Rising

customer

acquisition

costs

Changingconsumerbehavior Costs

of

returnsTop

Retail

Industry

Opportunities

LeverageAI

Implementunifiedcommerce Increaseecommercesales

Improvecustomerservice Increase

store

associate

productivitySALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION601Stores'Evolving

Roles

Enhance

theShoppers'

JourneySALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION7ChannelShiftsSignalan

Evolving

RetailLandscapePhysicalstorepurchasevolumeisdecreasing

asshoppingspreadsacrossagrowingarrayof

digital

channels.Despite

this,in-store

shopping

remainscrucial

due

to

its

unique,

irreplaceablebenefits

such

as

the

ability

to

touch

and

feelmerchandiseandgetproductsimmediately.The

growth

of

digital

commerce

isn't

creating

asinglewinner.Instead,onlinemarketplaces,

retailer

websites,brand

websites,anddeliveryappsareallgainingmodestshareasconsumer

journeys

take

unique

paths.PhysicalStores

RemainCrucial

Despite

Digital’sGrowthEstimatedVolumeofPurchasesAcrossthe

FollowingChannels2023

49%

15%

14%

12%

11%2024

45%14%

15%

13%

12%2026

41%16%

16%14%

13%Top

ReasonstoShopina

Physical

Store1

To

touch

and

feel

merchandise2

To

get

merchandise

immediately3

Toavoidshippingfees4

To

take

advantage

of

in-store

discounts5

To

enjoy

the

shopping

experienceSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION8

Physicalstore●

Retailerwebsite/app

Onlinemarketplace●

Brandwebsite/app011Salesforce

Connected

Shoppers

Report,2023Newer

channels&deliveryappsInadditiontoshoppingintraditionalretailspaces,consumers’

journeys

are

extendingfurther

as

they

engage

in"shopping

atthe

edge.”Whenretailersmeetconsumers

intheireveryday

digital

environments,socialmedia

can

be

a

powerful

force.

Over

half

ofshoppers

use

social

platforms

to

discoverproducts,while

nearly

a

quarter

followinfluencersforinspiration.The

journeycontinuesthroughpurchasing,where25%of

shoppers

buy

through

socialmedia

and16%via

messaging

apps.

Evenpost-purchaseserviceisevolving,withmessaging

apps

and

social

media

becomingkey

channels

for

customer

support.ShoppersWhoHaveUsedthe

FollowingChannelsforTheseUse

CasesDiscovery53%

Social

media23%

Influencers21%Messaging

app17%

Live-stream

video13%

BlogsService31%

Messaging

apps29%

Social

media26%

Video

or

live

chat19%

Text/SMS14%

Voice

assistantsBuying25%

Social

media16%

Messaging

app14%

Live-stream

video13%

Voice

assistants10%

Video

or

live

chatRetailersMeet

Shoppersat

the

EdgeSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION9DigitalShopping

Extends

BeyondTraditionalChannels01Social

platforms

have

evolved

into

dynamicspaces

for

brand

interaction

and

commerce,particularly

as

digital

natives

build

morepurchasing

power.Fifty-threepercentofshoppersdiscoverproductsonsocialplatforms—

up

from46%in

2023.YouTube

is

the

most

popular

social

platform

forproduct

discovery,followed

closely

by

Instagram

and

Facebook.Generationplaysa

key

rolein

shaping

habits,with

40%of

Gen

Z

using

TikTokforshoppingdiscoverycomparedtojust4%of

baby

boomers.Consumers

of

all

generations

flock

to

socialmediaforexclusivedeals,user-generatedreview,andproductdemonstrations,among

other

factors.Top

ReasonsShoppersUseSocial

Platformsfor

Product

Discovery1

Exclusive

discounts

or

promotions2

User-generated

reviews

and

recommendations3

Ability

to

see

products

in

use4

Friend

recommendations

or

shares5

DirectcommunicationwithbrandsandretailersSALES

FORCESpotlight:SocialMediafor

ProductDiscoveryShoppers

LeanintoSocial

PlatformsGenerationalUseofSocial

Platformsfor

Product

DiscoveryReportedUseofSocial

Platformsfor

Product

DiscoveryCONNECTED

SHOPPERS

REPORT’

6TH

EDITION

10Facebook

MessengerBaby

boomersInstagramWhatsAppMillennialsFacebook38%46%70%36%34%35%12%76%GenXers16%21%PinterestYouTube9%8%RedditTikTokGenZIn-StoreComplementsDigitalCommerceWhiledigitalcommercechannelsproliferate,physicalstoresareevolvingtoofferexperiencesand

services

that

can’t

be

replicated

online.Nearly

one

in

four

shoppers

have

soughtproduct

customization

or

repairs

in-store,while

others

have

explored

unique

experiences,pop-up

stores,and

virtual

try-on

features

likemagic

mirrors.Retailersaretransformingstorestodeliver

elevated

retail

experiences:59%now

offer

in-store

services

likecustomization

and

repairs,while46%providededicatedspacesforeventsandcommunity

gatherings.Looking

ahead,retailers

plan

furtherinvestments

in

technologies

and

servicesto

enhance

the

in-person

shoppingexperience,like

augmented

reality

andinteractive

styling

tools.59%34%In-store

services(e.g.,

repairs,customizations)52%40%Self-checkout48%Appointmentscheduling46%

44%Spaceforevents49%Augmentedreality47%37%In-storevirtualstylists23%Gotaproduct

repaired,

tailored,orcustomized17%Attendedaunique

in-storeexperience16%Attendedapop-upstore8%Usedvirtualtry-onRetailersI

PlanstoOfferValue-AddedServices Currently

offer

Plan

to

offerPhysicalStores

Embrace

ExperiencesandTechnologyShoppersWhoHaveDonethe

FollowingIn-StoreSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION110141%41%PhysicalStoresPowerFlexibleFulfillmentBeyond

offering

unique

experiences,physical

stores

are

also

fulfillment

hubs

that

facilitateflexibleshopping

journeys.Morethanhalfof

consumershavehadproducts

deliveredfromstores

or

bought

online

for

in-store

pickup.Amajorityofretailersoffercoreomnichannel

services

like

in-store

returns

of

onlinepurchasesandbuyonline,

pick

up

in-storeand

most

of

the

rest

are

racing

to

catch

up.Purchasedproductonlinetobedeliveredfromstore56%Purchasedproductonlinetopickupin-storeReturned

in-store

purchase

back

to

storeCollectedproductsfromlockersorpickuppointsReturnedonlinepurchasetostoreRetailersI

PlansforStore

FulfillmentCapabilities Currently

offer

Plan

to

offerFulfillment

Bridges

Digitaland

PhysicalShoppingShoppers

Who

Have

Completed

the

Following

Fulfillment

ActivitiesSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION12Samedaydeliveryfromstoreviathird-partydelivery

servicesSamedaydeliveryfromstorewithowndrivers52%Buy

online,pick

up

in-store(BOPIS)43%36%Buy

online,pick-upcurbside34%Onlinereturns

tostoreShipfrom

store0140%38%39%39%59%42%53%56%34%54%54%52%SALES

FORCESpotlight:Shoppers’In-StoreMobile

UseEvenincarefullycurated

retailspaces,customersremainomnichannel,usingmobiledevicestoaccess

loyaltyprograms,researchproducts

in

real

time,and

more.Youngergenerationsleadthewayacrosseverymobile

shopping

behavior.For

example,Gen

Zshoppersaretwiceaslikelyas

baby

boomersto

use

store

apps

for

checkout,and

eight

timesmorelikelytoorderfromcompetingretailers

whilewalkingtheaisles.Accesseda

loyaltyprogramResearcheda

productonlineScanned

aQRcodeUsedastore'sapptocheck-outOrderedfrom

anotherretailerTotal42%35%32%20%17%

32%

40%

49%

47%

23%

36%

41%

40%

22%

29%

33%

44%

12%

18%

25%

27%

Baby

boomers

3%

Gen

Xers

13%

26%

Millennials

24%

Gen

ZYoungerShoppers

Drive

Mobile-FirstStore

ExperiencesShoppersWhoHaveUsedMobileforTheseIn-StoreActivitiesCONNECTED

SHOPPERS

REPORT’

6TH

EDITION1302UnifiedCommerce

BringsOpportunities

andChallengesSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION14DisconnectedTechSaps

EfficiencyAs

shopping

journeys

weave

betweenphysical

and

digital

touchpoints

inincreasinglycomplexways,retailtechnology

grows

trickier

to

manage.Retailers

see

AI

as

their#1opportunity,

yet

implementing

these

solutions

is

alsotheir

top

operational

challenge.Highoperationalcostsanddisconnectedsystems

slow

progress

on

AI

and

othercriticalbusinessopportunities.Meanwhile,storeassociatesfeelthe

burdenofdisconnectedtechnology—only17%have

access

to

a

unifiedviewofcustomerdata

astheynavigatedisconnected

systems

in

their

daily

work.

Thisfragmentationhampersteams'abilityto

provide

effective

service

and

threatenslow

customer

satisfaction

scores.LimitedabilitytoimplementAIHighoperationalcostsMultipledisconnectedtoolsforstoreteams/

Low

customer

satisfaction

scores(tie)Difficulty

accessing

business

insightsIntegration

Woes

Challenge

RetailersRetailers’TopOperationalandCustomerExperienceChallengesSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION1502SALES

FORCEStoreAssociatesGrapplewithExpandingRolesStoreassociates'rolesaretransformingasdramaticallyasthestorestheyworkin.Traditionalcheckoutdutiesnowoccupy

just

28%of

their

time,while

responsibilities

suchas

store

operations,customer

service,andfulfillmentactivitiesfilltheremainderof

theirtime.As

duties

expand,associates

face

mountingtechnologicalcomplexity.Newassociatesmustmasteran

averageof

16differentsystemsthey'll

use

daily

up

from

12in2023

and

spend26

hours

ontechnologytrainingintheirfirst

monthalone.The

growing

number

of

distinct

systemscreates

significant

inefficiencies,drainingproductivity

at

a

time

when

associates'responsibilities

are

broader

than

ever. Customerservice

&engagement89%of

retailers

saythe

roleofstore

associatesis

broadening●Fulfillment&

returns81%of

retailers

sayinefficientprocessesandtechnologydrainstoreassociateproductivity25%23%20%BadTechnologyand

ProcessesWasteAssociatesITimeHowStoreAssociatesSpendTheirWorking

Hours28%CheckoutOthertasksCONNECTED

SHOPPERS

REPORT’

6TH

EDITION1672

%02operations●

Other●

Store4%RetailersSeeUnifiedCommerceas

KeyTo

overcome

disconnected

systems,retailers

are

actively

pursuing

unifiedcommerce

platforms.The

aim

is

toconnect

both

the

front-and

back-end

retailoperations—

fromstoresandecommerce

toordermanagementandmarketing—on

one

platform,creating

a

seamlessexperienceacrossdigitalandphysicalshopping

journeys.Whilenearly9in

10

retailers

have

unifiedcommerce

initiatives

underway,only15%

havefullyrealizedtheirvalue.Thestakesare

high:88%say

unified

commercewill

significantly

impact

their

goals,and

aquarter

go

as

far

as

stating

they

can't

meettheirobjectiveswithoutit.UnifiedCommerceInitiativesAre

Near-Universalin

ProgressSelf-Assessed

RetailUnifiedCommerceMaturity37%SALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION17Importance

of

Unified

Commerce

to

Business

Objectives

Over

Next

Two

YearsRealization:Operatingunifiedcommerce,measuringbenefits,gaugingfutureinvestmentsConsideration:Activelydiscussingviability,butdon'thave

a

formal

planor

budgetExecution:Implementingbusiness/technicalstrategy,managingchangeStrategization:

Creatingformal

plan,developingbusinesscase,

seekingbudgetNone:Notapriority;don'tanticipateallocatingresourcesExploration:Monitoringthemarket,gatheringinformation02SomewhatimportantVeryimportantNotimportant27%63%25%12%15%11%Critical8%1%1%AIUpstheAntefor

UnifiedCommerceRetailersseeunifiedcommerceas

transformativefortheiroperations.Beyondimmediategainsinproductivityand

efficiency,unified

commerce

createsafoundationforfutureinnovation:With

consolidated

data

and

systems,retailerssay

they

can

better

power

AI

capabilities.However,the

journeytounifiedcommerceinvolves

complex

obstacles

beyondcost

and

expertise.Many

retailers

mustuntangle

a

web

of

legacy

systems

thatconnect

stores

with

digital

channels.Theyalsooftenstrugglewithdatamigrationand

changemanagementissues.Retailers

Navigate

HurdlestoUnifiedCommerceTop

Benefits

of

Unified

Commerce

AbilitytopowerAIcapabilities

Increasedstoreassociateproductivity

Increasedoperationalefficiency Increased

revenue

ImprovedinventoryandordermanagementHighimplementationcosts43%LimitedITresourcesandexpertiseStore-to-digitalintegrationcomplexityDatamigrationchallengesDeeply

embedded

legacy

POS

systemLackofclearROI

justificationOrganizationalresistancetochangeSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION18Top

Challenges

Faced

While

Implementing

Unified

Commerce0240%39%38%34%34%33%03AIAgentsPoisedtoRedefine

RetailSALES

FORCE

CONNECTED

SHOPPERS

REPORT’

6TH

EDITION19SALES

FORCEAIShakesUpthe

RetailWorldAI

has

taken

retail

by

storm,transformingeverythingfromcustomerexperiencetosupply

chain

management.Already,84%of

retailers

use

AI,and

only2%have

no

plansfor

it.More

innovation

is

underway

as

AIbecomesincreasinglyagentic—takingaction

autonomouslywithouthumaninvolvement.85%of

retailers

agreeAIadvancementsaretransformingretail.Most

retailers

intend

to

increase

their

AIinvestments,with74%simultaneouslyboostingtheirdatamanagementinvestment

reflecting

how

accessible,integrated

dataunderpinssuccessfulAIimplementation.14%40%84%of

retailers

use

AI45%76%of

retailers

areincreasingtheirAIinvestments74%of

retailers

areincreasingtheirdatamanagementinvestmentsNearlyAll

RetailersAre

Usingor

EvaluatingAI2%●

Fully

implemented

AI

●Experimenting

with

AI

Evaluating

AI(not

used

yet)

No

plans

to

use

AICONNECTED

SHOPPERS

REPORT’

6TH

EDITION

20Retail

AI

Investments

Are

Growing03RetailersTrustinthe

Benefits

of

AIAsretailersexpandAIimplementations,they're

seeing

benefits

across

every

aspectof

the

business.Employee

productivity

topsthelist,withautomationofroutinetasksso

employees

can

focus

on

higher-valueactivities.Better

shopping

experiencesfollow,which

retailers

can

enhancethrough

capabilities

like

personalizedrecommendations.AI

also

strengthens

supplier

relationshipsbystreamliningprocesseslike

inventory

managementandordering.AI

yields

clear

business

results:89%

ofretailers

expect

returns

on

their

investments,

with

similar

shares

reporting

increased

online

sales

volume

and

reduced

operational

costs.AIImproves

Employee,Shopper,andSupplier

ExperiencesTop

Benefits

of

AI¹

Increasedemployeeproductivity

Improvedexperiencesforshoppers Increased

revenue

Improvedsupplierrelationships

ImprovedemployeeexperienceAgree

With

the

Following

Statements1WewillgetareturnonourAIinvestmentsAI

increases

our

online

sales

volumeAIreducesouroperatingcostsSALES

FORCE

CONNECTED

SHO

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