How businesses can leverage AI, retail, and CX software to enhance online consumers shopping experience

Online consumers are increasingly turning to technology such as QR codes, chatbots, and advanced search filters for their shopping. Read along to find out more about how businesses can use this knowledge to attract customers.

In the first report on elusive online consumers, we saw that Indian online shoppers exhibit a distinct behaviour and preference for high-quality products and services and find brand trust to be of great importance. 

In this article, we dive deeper into that research to determine whether online shoppers find technology helpful for conducting online searches and explore their search behaviours. For this, Capterra surveyed 500 Indian online shoppers to understand their stance on technological enablements and sentiments around aspects like search filters. Read along for key insights, and for our full methodology, scroll to the end of the article.

Ads continue to be an effective way to reach online consumers

Despite its ubiquity, ads continue to be a useful channel to reach customers. In order to gauge the effectiveness of advertisements on social media, we asked respondents about their behaviours in the last 12 months and found a whopping 70% had purchased one or more products after seeing a social media ad. Notably, after seeing a social media ad, 69% said they looked up information about a product and 65% said they followed a brand, indicating that even if social ads don't always result in direct purchases, they generate engagement and create a following base, which can lead to future purchases.

Social media ads are a direct and powerful way to take products to consumers. 65% of individuals stated they began following a brand within the last 12 months because of social media advertisements. This suggests that while these ads may not always lead directly to purchases, they do foster engagement, potentially resulting in future sales and the establishment of a loyal customer base.

The engagement sparked by these ads often extends beyond mere initial interest. It sets the stage for ongoing interaction, allowing brands to continuously deliver relevant content, updates, and offers to their followers. This ongoing dialogue not only reinforces brand presence but also increases the likelihood of converting engagement into tangible sales.

73% of social media shoppers don’t mind seeing ads if they are relevant

Upon asking which types of brand interaction or engagement surveyed shoppers find acceptable on social media, a significant majority (73%) of respondents said that they find ads acceptable for products that are relevant to their interests, underscoring the importance of effectively targeting the right audience. 

To achieve this, businesses can leverage marketing automation software to enhance their campaign effectiveness by analyzing customer data, segmenting audiences based on demographics and behaviour, and delivering personalised content that is more likely to engage and convert.

53% of respondents indicated they find ads for products they haven't previously shown interest in acceptable. This finding suggests a significant opportunity for companies to use social media platforms not only to reach existing customers but also to attract new ones. 

In a dynamic market like India, where half of consumers are open to discovering new products through social media, it becomes crucial for businesses to invest resources in targeting potential customers effectively across these platforms.

Majority of shoppers always use search results to narrow down searches

By introducing users to goods and services they are more likely to find appealing or helpful, relevant advertisements save them time and effort. By making the purchasing process more efficient and pleasurable, personalisation not only raises the possibility of engagement and conversion but also boosts consumer happiness. Relevant advertisements may also enhance consumers' browsing experiences by introducing them to new items or brands that they may not have otherwise come across.

When we asked the respondents how frequently they use search filters to narrow their product searches when shopping online, 52% said they always use them, followed by 36% who stated they use them often, 11% said they use search filters only sometimes. 

While consumers are finding search filters helpful, there is still scope for improvement. When we asked the respondents about challenges they’ve encountered when using search filters, 46% said they find filters to be too specific followed by 40% saying that they get overwhelmed by too many filters.

Too many search filters can be confusing and frustrate customers by restricting their ability to find desired products. This can lead to loss of interest or search abandonment, thereby affecting sales. If the search filters are direct and relevant, they can improve user experience and expose them to products they were probably not looking for during their initial search journey.

Online shoppers show increasing interest in chatbots and QR codes

Technology has transformed the way users shop online. It has simplified the shopping experience and improved consumers' decision-making and satisfaction. Technologies like augmented reality (AR) and virtual reality (VR) have helped shoppers visualise products in their desired environment and digital try-ons whereas Artificial Intelligence has offered optimised pricing and personalised recommendations. To understand how our respondents feel about the use of these technologies, 51% stated that they are interested in using AI chatbots and QR codes to shop online.

The growing interest of online shoppers in QR codes and chatbots highlights a shift towards a more convenient and interactive shopping experience. Businesses looking to enhance customer engagement and operations can leverage these technologies by integrating them with their current systems.

Almost 3 out of 4 shoppers would use AI-enabled chatbots again

Artificial intelligence (AI) chatbots offer real-time, 24/7 customer service by responding to inquiries, making tailored recommendations, and helping with purchases. This expedites the shopping process and cuts down on wait times. However, by just scanning with a smartphone, QR codes provide a quicker way to access product information, promotional offers, and digital services. 

In addition to saving time, this technological integration makes the shopping experience more dynamic and interesting, making it simpler for customers to find and buy what they need. When asked about the use of these AI-enabled chatbots, 72% of our respondents said they have used them to search for products online and would like to do so again in the future, while 18% said they have never used an AI chatbot.

According to a Gartner report, 50% of customer service and support organizations will have implemented GenAI-driven virtual assistants for agent assistance/ customer-facing tasks by 2026. Chatbots, especially those enhanced by Generative AI (GenAI), find diverse applications across various industries today including, but not limited to simulation and modelling, content generation, healthcare and medicine, and cybersecurity. Such chatbots can help businesses initiate human-like conversational dialogue with customers, route conversations to relevant stakeholders efficiently, offer personalised responses and recommendations and help visualize content.

While chatbots assist shoppers in their purchase journey, not everyone feels the same way. Interestingly, 8% said that they have used chatbots but do not plan to do so again.

What can businesses do?

Online consumers use a combination of sophisticated tools and preferences to control their shopping journey, prioritizing efficiency, relevance, and personalised experiences. When it comes to effectively reaching and engaging this particular target demographic, marketers must recognize and accommodate these behaviours.

Optimizing e-commerce platforms and marketing tactics may help businesses get insights into the behaviours and preferences of elusive online consumers. Enhancing search filters to be more granular and user-friendly can help consumers quickly find products that match their specific needs. Through an emphasis on efficiency, customisation, and relevance, companies may enhance their ability to connect with elusive online consumers, leading to increased customer satisfaction and conversion rates.