Salesforce has announced that the upcoming Cyber Week is expected to bring in 311 billion dollars in global sales. Consumers are eagerly waiting for the holiday offers, and the use of artificial intelligence (AI) and agents is expected to influence up to 19% of placed orders. The average price reduction should be 28%, and the biggest discounts can be found by consumers who aim to buy cosmetics and clothing.
Salesforce’s Predictions for Cyber Week 2024
Analyzing real-time data – which comes from Agentforce, Commerce Cloud, Service Cloud, and Marketing Cloud – Salesforce expects to observe four main trends during this year’s most critical shopping week:
Artificial Intelligence drives the cart: AI and agents will likely influence 19% of orders during Cyber Week, thereby accounting for 61 billion dollars in global sales.
Boost in online sales: It is projected that Cyber Week sales will reach 311 billion dollars globally, constituting 23% of all holiday purchases in 2024 and 75 billion dollars in the United States.
Discount rates expected to be attractive: Average discounts are likely to peak at 28% globally and 30% in the United States, driving a 5% year-on-year sales increase.
The highest discounts are predicted in the following product categories:
- Beauty and makeup – 38%
- Skin care – 33%
- Clothing (overall) – 33%
Discounts and consumer demand are increasing. Discounts peaked on average 20% in the first week of November – a 17% year-on-year increase, indicating that retailers are preparing for a competitive holiday season. Online orders also recorded a 4% year-on-year increase, signaling a positive change after a year of reduced consumer spending.
Chinese shopping platforms entice consumers with low prices, with 67% of shoppers using apps such as Shein, Temu, and TikTok Shop reporting that they plan to make their holiday purchases there this season. The best marketplace option for shoppers is Temu, and 40% of global consumers claim that they made between two to five purchases on this marketplace in the past year.
Mobile dominates digital checkouts: Orders placed via smartphones will make up 70% of sales. Mobile shopping is driven by improved on-the-go experiences in recent years and provides new conversion opportunities, thanks to AI agents in mobile messaging apps.
Salesforce Shopping Index – which analyzes data from 1.5 billion global shoppers, over 1.5 trillion visits, and hundreds of millions of unique SKU on the Salesforce Customer 360 platform – has shown that since the beginning of October, digital sellers using generative AI and agents have increased the average order value by 7% compared to those without this technology ($117 vs. $109). These innovations were also responsible for fulfilling 17% of global orders through personalized recommendations, targeted promotions, and smarter customer service.
Retailers using AI-based agents in this period have also doubled their customer service engagement. Employees have been able to handle complex matters as 30% of consumers prefer agents for faster service.
“Agents have the potential to transform the holiday season by helping retailers provide personalized, timely, and efficient service to shoppers when they need it most,” said Michael Affronti, SVP, and GM Commerce Cloud. “Digital retailers have vast opportunities to utilize AI to create personal shopping agents that help consumers find exactly what they’re looking for and still facilitate the path to purchase.”
A recent Salesforce study showed that 45% of global consumers hold off on shopping until Cyber Week, starting on November 26th, to take advantage of the season’s best deals. This situation creates an opportunity for retailers to leverage shopper excitement and increase conversion rates with discounts and customer service agents.
Additionally, the early Salesforce Shopping Index results for the holiday period collected between October 1 and November 14 showed a year-on-year global online sales decrease by 1% over the last seven weeks. However, worth noting is that it increased by 8% year-on-year in the first week of November, suggesting that consumer interest in holiday shopping is picking up steam.
The fastest-growing sales categories:
- Makeup (+10% YoY)
- Active footwear (+9% YoY)
- Handbags and luggage (+8% YoY)
Consumers are interested in AI agents for faster customer service. From the beginning of October, retailers who invested in AI-based customer service agents reported a twice higher customer service engagement rate compared to stores that did not implement this solution.
This increase is an early indicator that agents can take on larger and more complex case loads and adequately meet customer needs.
Customers seem to be open to using this innovation, with 30% of consumers stating they would cooperate with an AI agent if it meant quicker service. Although this technology is relatively new, leading retailers are already employing AI agents to help enhance shopping experiences. Almost one-quarter (24%) of consumers also stated they are now not opposed to AI agents doing shopping for them.
Returns pose a challenge to retailers: The number of returns in October and November was 33% higher compared to the same period last year, which has forced retailers to take a closer look at customer retention strategies and return policies to avoid losses.
Source: https://ceo.com.pl/co-sie-oplaca-kupic-w-black-friday-wcale-nie-elektronike-ale-kosmetyki-i-odziez-32510
