October 12, 2022
commercetools, a global leader in next-generation digital commerce solutions and the creator of headless commerce, in its latest global survey – ‘The 2022 Commerce Innovation Report’ – has reported that brands that do not leverage modern commerce platforms tend to witness a decline in customer loyalty. The survey that surveyed over 300 global retail business leaders, is expected to raise awareness and encourage Middle Eastern businesses to adopt and develop next-generation commerce platforms empowered by Headless Commerce architecture.
The latest report outlines how lack of innovation in the industry has a negative impact on brand loyalty, sales, and customer experience. The report centred on how consumers are quick to switch from slow-to-innovate brands that offer subpar commerce experiences, with millennials and Gen Z leading the migration. According to the report, 73 per cent of consumers will switch if a brand’s commerce experience falls short of their expectations. Furthermore, more than half of these consumers prefer modern commerce experiences, which are characterised by shifting consumer preferences, payment options, and digital devices.
The report further states that more than 70 per cent of respondents expressed concerns that millennials, a generation with over USD 2.5 trillion disposable income, may alter their buying habits and shift to businesses elsewhere. This is followed by Gen Z and Gen X, which make up 54 per cent and 48 per cent of the population respectively. Around 40 per cent of respondents also highlighted how their company’s current commerce solutions make it more challenging to sell their goods or services. Similarly, despite customers expressing interest in a variety of payment options, less than half offer multiple payment methods, with less than 20 per cent of respondents offering one-click checkout, and even fewer offering ‘Buy Now Pay Later’ and cashback features.
Jen Jones, Chief Marketing Officer of commercetools, stated: “Consumers are constantly redefining what the ideal customer experience feels like, given the abundance of options and the power of the internet at their fingertips. The brands with longevity are the ones that are taking this shift into account from both a technological and cultural perspective and are constantly evolving to meet customer demands. Change is constant in the modern commerce ecosystem. As a result, brands must be agile and meet customers where they are. This entails keeping a close eye on their customers’ purchasing behaviours and adopting the commerce experiences that best resonate with them. Anyone who thinks they can sit still and not evolve amid changing customer demands will soon find themselves out of business.”
The 2022 Commerce Innovation Report from commercetools serves as an ideal resource to raise market awareness about the importance of implementing modern solutions to improve business efficiency and omnichannel practices for growth. commercetools equips leading brands and retailers with modern and innovative solutions, required to deliver distinct eCommerce experiences that customers demand. To download the report, please visit the page here. To learn more about commercetools, please visit www.commercetools.com.
