73% consumers will switch if a brand’s commerce experience isn’t great

Brands that don’t leverage modern commerce platforms tend to witness a decline in customer loyalty, indicates a report that surveyed over 300 global retail business leaders. The report outlines how lack of innovation in the industry has a negative impact on brand loyalty, sales and customer experience.

Consumers are quick to switch from slow-to-innovate brands that offer subpar commerce experiences, with millennials and Gen Z leading the migration. Over 70% respondents expressed concerns that millennials, a generation with over $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% and 48% of the population, respectively.

The report published by commercetools indicates 73% of consumers will switch if a brand’s commerce experience falls short of their expectations. In addition, more than half of these consumers prefer modern commerce experiences, which are characterised by shifting consumer preferences, payment options and digital devices.

Interestingly, around 40% 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% offering one-click checkout, and even fewer offering ‘Buy Now Pay Later’ and cashback features.