Shopping with AI: IBM Survey Says Consumers Love It But Don't Love How Companies Use Their Data
Release Date: 02/02/2024
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info_outlineConsumers Crave AI with Shopping But Want More Control Over How Companies Use Their Data!
The IBM Institute for Business Value, decided to survey 20,000 consumers across 26 countries on their digital habits, their use of AI and generative AI, and their expectations for brands. So what were the results of the survey?
I invited the big IBM retail guy, Joe Dittmar, to join me to share what they found out.
Let's just say, most consumers want to receive information, advertisements, and offerings from stores that are relevant to their specific interests, but a whole bunch say they really really want more control over how companies use their data.
Joe Dittmar leads IBM’s Retail Industry across the company’s portfolio which includes Grocery, Department, Warehouse, Specialty, Discount, Convenience, Restaurants, and Online Retailers.
He shared that consumers are unsatisfied with both in-store (9% satisfaction) and online (14% satisfaction) experiences.
As a consumer I’m obviously not alone being uncomfortable with a 100 follow up marketing emails from a company I’ve bought just one pair of pants from and had to return because they didn’t fit right.
Joe said, AI’s making an effort to tailor communication more effectively to individual preferences. He also explained that retailers are currently managing inventory conservatively, leading to less variety in stores—a strategy resulting from the need to reduce inventory post-COVID.
The opportunity for retailers he said, is to improve customer experience by integrating online options when in-store selections are limited.
IBM has been a longstanding participant in the retail industry, inventing the cash register and credit card in case you didn’t know that. Now they are helping iconic brands leverage AI to improve operational efficiencies.
The survey showed that consumers are more open to adopting AI than expected, including interacting with virtual agents that can fast-track customers to human agents based on their tone and urgency. ( Wow, now I don’t feel so bad about occasionally losing it and yelling… ‘Give Me a Human!’ LOL)
Good insight by Joe and IBM! Aspiring retail talent can learn from their expertise.
About Joe Dittmar: Joe is known for helping retail and consumer product clients worldwide to transform their business models and consumer-facing activities. He is a leader in implementing complex business and technology solutions that drive improved performance.In 2022, Joe was honored with IBM’s highest industry designation, Distinguished Industry Leader, for his contributions to innovation in the industry and impact on IBM’s clients throughout his career. Joe serves on various industry advisory boards including the National Retail Federation Board of Directors. He actively mentors aspiring retail talent around the world.