E-commerce is booming, especially since the global pandemic. Yet some experts already see it facing the need to reinvent itself. Consumers are increasingly embracing "Total Commerce," a model whose success hinges on artificial intelligence and virtual reality. These two technologies are the driving forces behind the next generation of shopping experiences.
E-commerce is booming, especially since the global pandemic. Yet some experts already see it facing the need to reinvent itself. Consumers are increasingly embracing "Total Commerce," a model whose success hinges on artificial intelligence and virtual reality. These two technologies are the driving forces behind the next generation of shopping experiences.
A closer look
According to Fevad, French e-commerce revenue continues to climb (€72 billion between 2015 and 2016). In 2016 alone, over one billion online purchases were made: that’s 33 transactions per second.
Claude Chaffiotte, Executive Director of Accenture Interactive for France and the Benelux, stated: "E-commerce has no future if it’s built in opposition to physical retail."
Following Amazon’s lead, some e-commerce players are opening brick-and-mortar stores, while traditional retailers are rolling out digital services. Others, like Fnac, have opted for a "phygital" experience, blending in-store and online offerings. This is what’s known as "Total Commerce," a concept rooted in omnichannel strategy. Chaffiotte adds: "What customers want above all is a seamless experience that harmoniously combines digital and physical touchpoints."
The synergy between physical and digital is now deeply embedded in consumer behavior: a shopper might research a product online, visit a store to see it in person, place an order, and have it delivered to their doorstep. Chaffiotte notes: "On average, a customer will interact with an automotive brand 16 times before buying a car. Each touchpoint is an opportunity to win them over or lose them." From the website to the sales associate, from the ad campaign to the mobile app, every interaction matters. The goal? To make the customer journey as satisfying as possible.
What do consumers expect?
For Chaffiotte, the answer comes down to two words: "liquid expectations." He explains, "Customers want everything to be as effortless as ordering an Uber. Simple, intuitive, immersive and engaging: that’s the future of commerce, and AI will make it possible."
Artificial intelligence enables smooth, intuitive interactions while delivering value at every touchpoint. The result? A deep understanding of the customer, leading to truly personalized services from brands and retailers. After all, AI has been shaping the industry for 14 years now.
Conversational agents
AI, with human-like cognitive abilities, thrives on a deep understanding of the customer. It leverages data from similar users, purchase history, browsing behavior, and more.
Aware of AI’s potential, tech giants like GAFA are heavily investing in R&D, giving rise to chatbots. Originally, a bot was just a small program designed to automate a specific task, such as adding a calendar event, fetching information, or making a restaurant reservation.
Hybrid technologies
Over time, chatbots have evolved into "virtual butlers," capable of performing tasks and making personalized recommendations based on user preferences. Think of Apple’s Siri or Microsoft’s Cortana: true digital assistants.
Another technology is set to redefine commerce: virtual reality (VR).
With VR, users can immerse themselves in a digitally created world. In 2016, Baidu launched its first VR app, DuSee, which doesn’t just plunge users into a virtual environment but lets them interact with it. This fusion of VR and AI was foreshadowed by games like Pokémon Go. Soon, consumers will be able to "visit" potential travel destinations virtually before booking their next trip.
For brands, the challenge is to deliver experiences that are increasingly innovative, seamless, and continuous while keeping the human element at the heart of their strategies, powered by technology.
