Shopping: What’s in the shopping bag beyond convenience? Surprise and belonging!

Why it is the topic trending:

• AI Transformation of Retail: The headline finding of Salesforce's Connected Shoppers report, with 85% of retailers agreeing AI is transforming retail, highlights a major ongoing shift in the industry.

• Beyond Convenience: While AI promises seamless and automated ease, the article delves into the deeper desires of shoppers that extend beyond mere convenience, suggesting a more nuanced understanding of consumer needs is emerging.

• Craving Surprise and Joy: Amidst the precision of algorithms, consumers are expressing a desire for unexpected and joyful shopping experiences, indicating a potential fatigue with hyper-personalization alone.

• Demand for Worth Beyond Price: While price remains a key factor, a significant portion of shoppers are switching brands due to unmet evolving needs and a lack of emotional connection with loyalty programs, pointing to a need for brands to offer more than just discounts.

• Experiential Rewards and Emotional Loyalty: The emphasis on experiential rewards and the emotional drivers of loyalty, particularly among younger generations like Gen Z, signals a new direction for customer engagement strategies.

Overview: Salesforce's 6th edition of its Connected Shoppers report, based on a survey of over 8,000 consumers and 1,700 retail leaders across 21 countries, confirms the widespread belief that AI is transforming retail. However, the report also uncovers deeper desires of shoppers that go beyond convenience. Two key shifts are highlighted: the craving for surprise and unexpected joy in shopping experiences, dubbed "Serendipity Seekers," and the need for brands to offer "Worthwhile" value that extends beyond just price, focusing on emotional connection and evolving needs. The report suggests that while AI will drive seamlessness, retailers need to tap into the human desire for discovery and belonging to truly resonate with consumers in the future.

Detailed Findings:

• AI is Transforming Retail: 85% of retailers agree that Artificial Intelligence is transforming the retail industry.

• Majority of Purchases Still IRL: Shoppers expect 41% of their purchases will still occur in physical stores by 2026, a slight decrease from 45% in 2024, indicating the continued importance of brick-and-mortar.

• Craving Surprise Amidst Algorithms: Consumers are increasingly desiring surprise and joy in their shopping experiences, contrasting with the predictable nature of algorithmic precision.

• Missed Opportunity in Unique In-Store Experiences: Only 17% of shoppers have participated in a unique in-store experience, highlighting a significant area for improvement for retailers.

• Price Remains a Key Driver for Switching: 66% of shoppers will switch brands due to high prices.

• Brands Need to Keep Up with Evolving Needs: 26% of shoppers switch brands because they feel the brands are not keeping pace with their changing needs.

• Loyalty Program Disengagement: While 77% of shoppers belong to at least one loyalty program, 35% never utilize them, suggesting a lack of meaningful engagement.

• Gen Z Craves Experiential Rewards: Gen Z is three times more likely than Baby Boomers to desire experiential rewards such as backstage passes and exclusive workshops.

• Emotional Connection Drives Future Loyalty: The future of loyalty programs lies in fostering emotional connections, social engagement, and a sense of identity, rewarding participation beyond just purchases.

Key success factors of product (trend):

• Blending Digital Efficiency with IRL Delight: Successfully integrating AI and other technologies to provide seamlessness while also creating surprising and joyful in-store experiences.

• Understanding and Adapting to Evolving Customer Needs: Continuously monitoring and responding to the changing preferences and expectations of shoppers beyond just transactional interactions.

• Building Emotional Loyalty: Designing loyalty programs that go beyond simple points-for-purchase and instead focus on creating emotional connections through unique and personalized rewards.

• Creating Irresistible In-Store Experiences: Transforming physical retail spaces into discovery engines that offer curated randomness, sensory engagement, and unexpected collaborations.

• Recognizing Generational Differences in Loyalty Preferences: Tailoring loyalty rewards to resonate with different age groups, particularly focusing on the experiential desires of younger consumers like Gen Z.

Key Takeaway: While AI is undeniably reshaping retail, providing unprecedented levels of convenience, retailers must not overlook the fundamental human desires for surprise, joy, and a sense of belonging. To thrive, brands need to move beyond purely transactional loyalty programs and create emotionally resonant experiences, particularly in physical stores, that offer genuine value and cater to the evolving needs of their diverse customer base, especially the experience-driven younger generations.

Main Trend: Beyond Algorithmic Convenience: The Human Element in Future Retail

Description of the trend (please name it): The Retail Renaissance: Balancing AI Efficiency with Human Connection and Discovery

What is consumer motivation:

• Seeking Joy and Discovery: Consumers are motivated by the desire for delightful and unexpected moments in their shopping journeys, moving beyond predictable algorithmic recommendations.

• Valuing Experiences Over Purely Transactional Interactions: Shoppers are increasingly looking for more than just a purchase; they seek engaging and memorable experiences with brands.

• Desiring Recognition and Emotional Connection: Consumers want to feel understood and valued by the brands they support, seeking loyalty rewards that resonate with their personal interests and identities.

• Evolving Needs and Expectations: Shoppers are motivated to switch brands if their evolving needs and expectations are not being met beyond just pricing concerns.

• Craving Belonging and Community: Experiential rewards like workshops and masterclasses can foster a sense of belonging and community around a brand.

What is driving trend:

• Saturation of Hyper-Personalization: Consumers may be experiencing fatigue with overly predictable and algorithmically driven online experiences, leading to a desire for serendipity.

• The Enduring Appeal of Physical Retail: Despite the growth of e-commerce, a significant portion of consumers still value in-person shopping, creating an opportunity for retailers to enhance these experiences.

• Recognition of Loyalty Program Limitations: The low usage rates of traditional points-for-purchase loyalty programs indicate a need for more engaging and emotionally driven reward systems.

• The Influence of Younger Generations: The preferences of digitally native generations like Gen Z, who prioritize experiences, are shaping the future of retail and loyalty strategies.

• Technological Advancements Enabling Unique In-Store Experiences: Innovations in areas like sensory technology and interactive displays can facilitate the creation of more engaging physical retail environments.

What is motivation beyond the trend:

• A Desire for Balance: Consumers are seeking a balance between the efficiency of online shopping and the sensory engagement and discovery offered by physical retail.

• Authenticity and Genuine Connection: Shoppers are looking for brands that genuinely understand and connect with them on an emotional level, rather than just focusing on transactions.

• Seeking Moments of Delight and Surprise in Everyday Life: The desire for serendipity in retail reflects a broader human need for moments of unexpected joy and discovery.

• Building Personal Identity Through Brand Affiliation: For some consumers, aligning with certain brands and participating in their communities can be a way to express their personal identity and values.

Description of consumers article is referring to: The article refers to a broad range of consumers globally, with specific emphasis on certain segments:

• Tech-Savvy Shoppers: Consumers who are comfortable with and expect AI-driven convenience in their retail experiences.

• "Serendipity Seekers": Shoppers who, despite appreciating digital efficiency, crave unexpected and joyful discoveries in their shopping journeys, particularly in physical stores. This group likely includes individuals who feel that online experiences have become too predictable.

• Value-Conscious Shoppers: A significant portion of consumers who will switch brands over high prices.

• Shoppers with Evolving Needs: Consumers who seek brands that can adapt and stay relevant to their changing preferences and expectations beyond just price.

• Loyalty Program Members: A large segment of shoppers who participate in loyalty programs but often do not actively use them, suggesting dissatisfaction with traditional rewards structures.

• Gen Z: A key demographic highlighted for their strong preference for experiential loyalty rewards over traditional points-based systems. They are digitally native and value unique, shareable experiences.

• Baby Boomers: Contrasted with Gen Z, this generation is less likely to crave experiential rewards from loyalty programs, indicating differing preferences across age groups.

Conclusions: The Salesforce Connected Shoppers report reveals a critical insight for the future of retail: while AI and convenience are paramount, they are not the sole drivers of consumer satisfaction and loyalty. Shoppers, particularly younger generations, crave elements of surprise, joy, and genuine connection with brands. Retailers who can successfully blend the efficiency of AI with the creation of engaging in-store experiences and emotionally resonant loyalty programs that cater to evolving needs will be best positioned to capture the hearts and wallets of tomorrow's consumers.

Implications for brands:

• Reimagine the Brick-and-Mortar Experience: Invest in creating unique and memorable in-store environments that encourage discovery, sensory engagement, and unexpected interactions.

• Evolve Loyalty Programs Beyond Transactions: Design loyalty programs that offer experiential rewards, exclusive access, and opportunities for community building, catering to emotional drivers rather than just purchase points.

• Personalize Experiences, Not Just Recommendations: Utilize AI to understand individual customer needs and preferences on a deeper level, enabling more relevant and emotionally resonant interactions across all channels.

• Embrace Curated Randomness: Incorporate elements of surprise and unpredictability into the shopping journey, both online and offline, to reintroduce the joy of discovery.

• Foster a Sense of Belonging: Create opportunities for customers to connect with the brand and with each other, fostering a sense of community and shared identity.

Implication for society:

• Potential for More Engaging and Enjoyable Retail Spaces: A focus on creating "discovery engines" in physical retail could lead to more vibrant and interactive community spaces.

• Shift Towards Experiential Consumption: The emphasis on experiences over pure transactions aligns with a broader societal trend valuing memories and personal enrichment.

• Re-evaluation of Loyalty and Customer Relationships: Brands may need to rethink their approach to building customer loyalty, focusing on genuine connection rather than purely transactional rewards.

Implications for consumers:

• Potentially More Exciting and Engaging Shopping Experiences: Retailers focusing on serendipity and emotional connection could lead to more enjoyable and memorable shopping trips.

• Loyalty Programs That Offer More Meaningful Rewards: Consumers may benefit from loyalty programs that provide unique experiences and a sense of belonging, rather than just accumulating points.

• Brands That Are More Attuned to Evolving Needs: Retailers who actively listen to and adapt to changing customer preferences are more likely to offer products and services that truly meet their needs.

Implication for Future:

• Greater Integration of AI to Enhance Human Connection: AI could be used in innovative ways to facilitate more personalized and meaningful interactions between brands and consumers, both online and offline.

• The Rise of Experiential Retail as a Key Differentiator: Creating unique and engaging in-store experiences will become increasingly important for brick-and-mortar retailers to compete with e-commerce.

• Loyalty as an Ecosystem of Engagement: Loyalty programs may evolve into broader ecosystems that reward various forms of engagement beyond just purchases, fostering stronger brand communities.

• A More Holistic View of Customer Value: Retailers will likely adopt a more holistic view of customer value, recognizing the importance of emotional connection and long-term relationships over purely transactional metrics.

Consumer Trend (name, detailed description): Experiential Loyalty: Consumers, particularly younger generations, are increasingly valuing experiences and emotional connections with brands over traditional transactional rewards in loyalty programs. This trend emphasizes the desire for unique opportunities, exclusive access, and a sense of community fostered by brands, leading to deeper engagement and long-term loyalty.

Consumer Sub Trend (name, detailed description): The Joy of Discovery: In an era of hyper-personalization and predictable online experiences, consumers are actively seeking elements of surprise, joy, and unexpected discovery in their shopping journeys, especially in physical retail environments. This sub-trend highlights a desire for novelty and a break from algorithmic predictability.

Big Social Trend (name, detailed description): The Value of Experience Over Materialism: A broader societal shift where individuals are increasingly prioritizing experiences, personal growth, and meaningful connections over the accumulation of material possessions. This trend influences consumer spending and preferences across various industries, including retail.

Worldwide Social Trend (name, detailed description): The Blended Retail Reality: Globally, consumers are navigating a blended retail landscape where online and offline shopping experiences are increasingly interconnected. This necessitates that retailers offer seamless and engaging experiences across all channels, recognizing the continued importance of physical stores alongside e-commerce.

Social Drive (name, detailed description): The Need for Connection and Delight: Beyond the functional aspects of shopping, consumers are driven by the fundamental human needs for connection, belonging, and moments of delight and surprise in their everyday experiences. Retail environments that tap into these social and emotional drives are more likely to resonate with consumers.

Learnings for brands to use in 2025:

• Don't Underestimate the Power of IRL: Physical retail still holds significant value for consumers, offering opportunities for engagement and discovery that online channels may lack.

• Convenience is Not the Only Currency: While efficiency is important, focusing solely on convenience can lead to transactional relationships. Brands need to offer more.

• Emotional Connection Drives Lasting Loyalty: Building emotional connections with customers through personalized experiences and meaningful rewards is key to long-term loyalty.

• Experiences are the New Points: Especially for younger demographics, offering unique and shareable experiences can be more impactful than traditional loyalty points.

• Surprise and Delight Can Break Through the Noise: In a saturated market, creating unexpected and joyful moments can help brands stand out and capture consumer attention.

Strategy Recommendations for brands to follow in 2025:

• Invest in Creating Engaging In-Store Experiences: Develop interactive displays, host events and workshops, and incorporate elements of surprise and delight in physical retail spaces.

• Redesign Loyalty Programs to Focus on Experiential Rewards: Offer exclusive access, early product releases, special events, and personalized experiences tailored to customer interests.

• Utilize AI to Enhance Personalization Beyond Product Recommendations: Leverage AI to understand customer preferences for experiences and tailor interactions and rewards accordingly.

• Experiment with Unexpected Collaborations and Partnerships: Create buzz and attract new audiences by partnering with brands or individuals in unexpected ways to offer unique experiences or products.

• Foster Online and Offline Communities: Create spaces where customers can connect with the brand and with each other, fostering a sense of belonging and shared identity.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it. The emerging retail renaissance necessitates that brands move beyond the purely transactional focus of convenience and leverage AI to enhance, rather than replace, the human elements of joy, discovery, and belonging in the shopping experience; to thrive in 2025, companies should strategically invest in creating irresistible in-store environments and emotionally resonant loyalty programs that cater to the evolving, experience-driven needs of their customers.

Final Note:

• Core Trend: The Retail Renaissance: Balancing AI Efficiency with Human Connection and Discovery: The necessary evolution of retail that integrates technological advancements with the enduring human desire for engaging and emotionally resonant shopping experiences.

• Core Strategy: Experience-Driven Engagement: Prioritizing the creation of unique, joyful, and community-focused experiences in both physical and digital retail spaces to foster stronger customer relationships.

• Core Industry Trend: The Shift from Transactional to Emotional Loyalty: The move away from traditional points-for-purchase loyalty programs towards systems that reward engagement, foster belonging, and offer personalized experiences.

• Core Consumer Motivation: Seeking Joy, Discovery, and Belonging Beyond Convenience: Consumers are motivated by the desire for delightful surprises, opportunities for exploration, and a sense of connection with brands and fellow shoppers, exceeding their basic need for efficient transactions.

Final Conclusion: The Salesforce Connected Shoppers report provides valuable insights into the evolving landscape of retail, highlighting that while AI will continue to be a transformative force, the human element remains crucial. By understanding and catering to the deeper desires of consumers for surprise, joy, and belonging, brands can create more meaningful and lasting relationships, ultimately leading to greater customer loyalty and success in the dynamic retail environment of 2025 and beyond.

Core Trend Detailed: The core trend, The Retail Renaissance: Balancing AI Efficiency with Human Connection and Discovery, describes a critical juncture in the evolution of the retail industry. While acknowledging the transformative power of Artificial Intelligence in driving efficiency and personalization, this trend emphasizes the imperative for retailers to also cultivate meaningful human connections and foster the joy of discovery for consumers. It recognizes that in an increasingly digital world, the unique value propositions of physical retail – and indeed, of all brand interactions – lie in their ability to offer more than just transactional convenience. This renaissance involves a deliberate effort to blend the technological advancements that streamline processes with the human-centric elements that create memorable and emotionally resonant experiences, ultimately leading to stronger customer loyalty and brand affinity.

Key Characteristics of the Core trend:

• Integration of AI and Human-Centered Design: A focus on leveraging AI to enhance, rather than replace, human interaction and the emotional aspects of shopping.

• Emphasis on Experiential Retail: The transformation of physical stores into destinations that offer engaging and memorable experiences beyond simply purchasing products.

• Evolution of Loyalty Programs: A shift from purely transactional rewards to programs that foster emotional connection, community, and personalized experiences.

• Recognition of the Desire for Serendipity: An understanding that consumers, even in a hyper-personalized world, crave elements of surprise and unexpected joy in their shopping journeys.

• Holistic Customer Engagement: A move towards engaging with customers across all touchpoints in a way that addresses both their functional needs and their emotional desires.

Market and Cultural Signals Supporting the Trend:

• High Percentage of Retailers Investing in AI: The 85% agreement on AI's transformative role indicates a widespread industry focus on technological advancements.

• Continued Importance of Brick-and-Mortar: The significant percentage of expected IRL purchases highlights the enduring value consumers place on physical retail spaces.

• Consumer Feedback on Loyalty Program Disengagement: The low usage rates of traditional loyalty programs signal a need for more compelling and emotionally resonant rewards.

• Growing Demand for Experiences, Especially Among Younger Generations: The preference of Gen Z for experiential rewards aligns with a broader societal trend valuing experiences over material possessions.

• Emergence of Innovative Retail Concepts: Examples of retailers experimenting with unique in-store experiences and community-building initiatives.

How the Trend Is Changing Consumer Behavior:

• Seeking More Engaging and Less Predictable Shopping Journeys: Consumers are looking for retail experiences that offer elements of surprise and delight, breaking away from the monotony of purely transactional interactions.

• Prioritizing Brands That Offer Emotional Connection and Community: Shoppers are more likely to be loyal to brands that make them feel valued, understood, and part of a community.

• Demanding Loyalty Rewards That Go Beyond Discounts: Consumers are seeking unique experiences, exclusive access, and personalized recognition from loyalty programs.

• Actively Engaging with Retailers Who Create Memorable In-Store Environments: Physical stores that offer compelling and interactive experiences are more likely to attract and retain customers.

• Balancing the Desire for Convenience with the Appeal of Discovery: Consumers are seeking retail options that offer both efficiency and the opportunity for serendipitous finds.

Implications Across the Ecosystem:

• For Brands and CPGs: Need to develop products and marketing strategies that align with experiential retail and emotional loyalty, potentially through exclusive collaborations or in-store activations.

• For Retailers: Requires investment in reimagining physical spaces, training staff to deliver engaging experiences, and developing more sophisticated, emotionally driven loyalty programs.

• For Consumers: Potential for more enjoyable, engaging, and rewarding shopping experiences that cater to both their practical needs and their desires for connection and discovery.

Strategic Forecast:

• Experiential Retail Will Become a Key Competitive Differentiator: Retailers who excel at creating engaging in-store experiences will have a significant advantage.

• Loyalty Programs Will Evolve to Focus on Emotional Engagement: Traditional points-based systems will become less effective, replaced by programs that offer personalized experiences and a sense of belonging.

• AI Will Be Used to Enhance, Not Replace, Human Interaction in Retail: The focus will shift towards using AI to empower staff and create more meaningful customer engagements.

• Retail Spaces Will Become More Multi-Functional and Community-Oriented: Physical stores may evolve into hubs that offer a range of services and experiences beyond just shopping.

• Brand Partnerships Will Increasingly Focus on Creating Unique and Shareable Experiences: Collaborations will aim to generate excitement and provide customers with memorable moments.

Final Thought (summary): The Retail Renaissance signifies a crucial evolution beyond mere transactional efficiency, urging brands to strategically weave together the power of AI with the timeless human desires for connection, discovery, and joy, ultimately crafting retail experiences that resonate on a deeper, more meaningful level with consumers in the years to come.

Source: https://www.trendwatching.com/trends-and-insights/whats-in-the-shopping-bag-beyond-convenience-surprise-and-belonging