SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 2

What You’ll Find

in This Report
For the sixth edition of the “Connected Shoppers” report,
Salesforce surveyed 8,350 shoppers and 1,700 retail
industry decision-makers to learn steps companies are
taking to:

• Transform the role of the physical store

• Connect seamlessly with shoppers wherever they are
• Use AI agents to change how they do business
• Build loyalty beyond points-for-purchase programs

Due to rounding, not all percentage totals in this report

sum to 100%. All comparison calculations are made from
total numbers (not rounded numbers).

Data in this report are from two double-anonymous 8,350 shoppers and 1,700 retail
surveys conducted from November 27 through December
industry decision-makers surveyed worldwide
26, 2024. Respondents represent 21 countries across five
continents. All respondents are third-party panelists. For
*Single Sample Group †Single Sample Group Flag icons: Getty Images
further survey demographics, see page 35.

Salesforce Research provides data-driven insights to help

businesses transform how they drive customer success.
Browse all reports at salesforce.com/research.
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 3

Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

Chapter 1: Stores' Evolving Roles Enhance the Shoppers' Journey . . . . . . . . . . . . . . . . . . . . . . . . . . 07

Chapter 2: Unified Commerce Brings Opportunities and Challenges . . . . . . . . . . . . . . . . . . . . . . . 14

Chapter 3: AI Agents Poised to Redefine Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Chapter 4: Rewards Programs Put a Check on Declining Shopper Loyalty . . . . . . . . . . . . . . . . . . . 28

Look Ahead: Supplemental Revenue Streams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Survey Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 4

Executive Summary
Retail is transforming as AI agents
emerge as the newest innovation 01 Stores' Evolving Roles Enhance the Shoppers' Journey
While digital channels multiply and social commerce gains momentum,
in the artificial intelligence (AI) age.
Agents can function as scalable digital physical stores take on expanding roles as experience hubs and
labor, integrated across every team, fulfillment centers that bridge digital and physical shopping journeys.
that independently execute tasks Shoppers estimate 41% of their purchase volume will come from
ranging from customer service to physical stores in 2026, down from 45% in 2024.
marketing to inventory management.

To enable this new wave of innovation

02 Unified Commerce Brings Opportunities and Challenges
Companies are working to connect online and offline experiences
and efficiency, retailers are breaking to understand shoppers and serve them seamlessly across channels.
down data silos and replacing legacy Retailers are upgrading systems and empowering store associates to
systems with integrated solutions improve efficiency and provide more value to shoppers. Eighty-eight
that can support current and future percent of retailers say unified commerce will be very important or
AI capabilities. critical to their business objectives over the next two years.

03
These strategic improvements enable AI Agents Poised to Redefine Retail
seamless, connected shopping
The newest iteration of AI — AI agents — greatly expands the tech-
experiences that position retailers to
nology's impact by independently responding to customer inquiries,
thrive in an evolving marketplace.
managing inventory, and more. Seventy-five percent of retailers say
AI agents will be essential for a competitive edge by 2026.

04 Rewards Programs Put a Check on Declining Shopper Loyalty

Brand loyalty can be fleeting, especially among younger shoppers.
Companies are responding by reimagining customer service and refining
their rewards programs. Eighty-four percent of loyalty program
members say programs make them more likely to repurchase.
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 5

Introduction
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 6

Introduction:
AI Agents and
Retailers Balance Strategic Priorities as Cost Pressures Mount
Unified Commerce
Underpin Retail's Top Retail Industry Challenges

Digital Transformation Increased competition

What happens when competition intensifies

Inflation and high costs
amid rising operating and customer
acquisition costs? For retailers, it adds up to Rising customer acquisition costs
significant pressure on profit margins.
Changing consumer behavior
As retailers grapple with these and other
headwinds, they view digital transformation — Costs of returns
especially from AI and unified commerce — as
their greatest opportunity. More ecommerce
sales, improved customer service, and better
associate productivity are also top-of-mind. Top Retail Industry Opportunities

Retailers view leveraging AI as

their #1 opportunity. Leverage AI

Implement unified commerce

Increase ecommerce sales

Improve customer service

Increase store associate productivity

SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 7

01
Stores' Evolving
Roles Enhance
the Shoppers'
Journey
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01 Channel Shifts
Signal an Evolving
Physical Stores Remain Crucial Despite Digital’s Growth
Retail Landscape Estimated Volume of Purchases Across the Following Channels
Physical store purchase volume is decreasing
as shopping spreads across a growing array of
2023 49% 15% 14% 12% 11%
digital channels.

Despite this, in-store shopping remains

2024 45% 14% 15% 13% 12%
crucial due to its unique, irreplaceable
benefits — such as the ability to touch and feel
merchandise and get products immediately. 2026 41% 16% 16% 14% 13%

The growth of digital commerce isn't creating

a single winner. Instead, online marketplaces, Physical Retailer Online Brand Newer channels
store website/app marketplace website/app & delivery apps
retailer websites, brand websites, and
delivery apps are all gaining modest share as 1
Salesforce Connected Shoppers Report, 2023
consumer journeys take unique paths.

Top Reasons to Shop in a Physical Store

1 To touch and feel merchandise

2 To get merchandise immediately

3 To avoid shipping fees

4 To take advantage of in-store discounts

5 To enjoy the shopping experience

 SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 9

01 Retailers Meet
Shoppers at
Digital Shopping Extends Beyond Traditional Channels
the Edge
In addition to shopping in traditional retail Discovery
spaces, consumers’ journeys are extending 53% Social media
further as they engage in "shopping at 23% Influencers
the edge.” 21% Messaging app
17% Live-stream video
13% Blogs
When retailers meet consumers in their
everyday digital environments, social
media can be a powerful force. Over half of
shoppers use social platforms to discover
products, while nearly a quarter follow
influencers for inspiration. Buying
Shoppers Who Have
25% Social media
Used the Following
16% Messaging app
The journey continues through purchasing, Channels for These
14% Live-stream video
where 25% of shoppers buy through social Use Cases 13% Voice assistants
media and 16% via messaging apps. Even 10% Video or live chat

post-purchase service is evolving, with

messaging apps and social media becoming
key channels for customer support.

Service
31% Messaging apps
29% Social media
26% Video or live chat
19% Text/SMS
14% Voice assistants
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Spotlight: Shoppers Lean into Social Platforms

Social Media for Generational Use of Social Platforms for Product Discovery

Product Discovery
Social platforms have evolved into dynamic 76%
70%
spaces for brand interaction and commerce,
46%
particularly as digital natives build more 36%
purchasing power.

Fifty-three percent of shoppers Baby boomers Gen Xers Millennials Gen Z

discover products on social
platforms — up from 46% in 2023.
Reported Use of Social Platforms for Product Discovery
YouTube is the most popular social platform for
product discovery, followed closely by Instagram
and Facebook. Generation plays a key role 38% 35% 34%
in shaping habits, with 40% of Gen Z using 21%
16% 12% 9% 8%
TikTok for shopping discovery compared to
just 4% of baby boomers. YouTube Instagram Facebook TikTok WhatsApp Pinterest Facebook Reddit
Messenger
Consumers of all generations flock to social
media for exclusive deals, user-generated Top Reasons Shoppers Use Social Platforms for Product Discovery
review, and product demonstrations, among
other factors.
1 Exclusive discounts or promotions

2 User-generated reviews and recommendations

3 Ability to see products in use

4 Friend recommendations or shares

5 Direct communication with brands and retailers

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01 In-Store Physical Stores Embrace Experiences and Technology

Complements Shoppers Who Have Done the Following In-Store

Digital Commerce
While digital commerce channels proliferate,
23%
physical stores are evolving to offer experiences 17% 16%
8%
and services that can’t be replicated online.
Nearly one in four shoppers have sought Got a product repaired, Attended a unique Attended a pop-up store Used virtual try-on
tailored, or customized in-store experience
product customization or repairs in-store, while
others have explored unique experiences,
pop-up stores, and virtual try-on features like
magic mirrors.
Retailers' Plans to Offer Value-Added Services
Retailers are transforming stores to
deliver elevated retail experiences:
59% now offer in-store services like Currently offer Plan to offer
customization and repairs, while 46%
provide dedicated spaces for events and
59%
community gatherings. 52% 48% 46% 49% 47%
40% 41% 44% 41%
34% 37%

Looking ahead, retailers plan further

investments in technologies and services
to enhance the in-person shopping In-store services Self-checkout Appointment Space Augmented In-store
experience, like augmented reality and (e.g., repairs, scheduling for events reality virtual stylists
customizations)
interactive styling tools.
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01 Physical Stores
Power Flexible
Fulfillment Bridges Digital and Physical Shopping
Fulfillment
Shoppers Who Have Completed the Following Fulfillment Activities
Beyond offering unique experiences, physical
stores are also fulfillment hubs that facilitate Purchased product online to be delivered from store 56%
flexible shopping journeys. More than half of
consumers have had products delivered from Purchased product online to pick up in-store 52%
stores or bought online for in-store pickup.
Returned in-store purchase back to store 43%
A majority of retailers offer core omnichannel
services like in-store returns of online Collected products from lockers or pickup points 36%

purchases and buy online, pick up in-store

Returned online purchase to store 34%
and most of the rest are racing to catch up.

Retailers' Plans for Store Fulfillment Capabilities

Currently offer Plan to offer

59% 56% 54% 54% 53% 52%

38% 39% 39% 40% 42%
34%

Online returns Buy online, Same day Ship from Buy online, Same day delivery
to store pick up in-store delivery from store pick-up from store via
(BOPIS) store with curbside third-party
own drivers delivery services
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Spotlight: Younger Shoppers Drive Mobile-First Store Experiences

Shoppers’ In-Store Shoppers Who Have Used Mobile for These In-Store Activities
Mobile Use
Total
Even in carefully curated retail spaces, 32%
customers remain omnichannel, using mobile Accessed a 40%
loyalty program
42% 49%
devices to access loyalty programs, research 47%
products in real time, and more.

23%
Younger generations lead the way across every
Researched a 36%
mobile shopping behavior. For example, Gen product online
35% 41%
Z shoppers are twice as likely as baby boomers 40%
to use store apps for checkout, and eight times
more likely to order from competing retailers 22%
while walking the aisles. Scanned a 29%
QR code
32% 33%
44%

12%
Used a store's app 18%
to check-out
20% 25%
27%

Baby boomers
3% Gen Xers
Ordered from 13%
another retailer
17% 26% Millennials
24% Gen Z
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02
Unified Commerce
Brings Opportunities
and Challenges
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02 Disconnected Tech
Saps Efficiency
Integration Woes Challenge Retailers
As shopping journeys weave between
physical and digital touchpoints in Retailers’ Top Operational and Customer Experience Challenges

increasingly complex ways, retail

technology grows trickier to manage. Limited ability to implement AI

Retailers see AI as their #1 opportunity, High operational costs

yet implementing these solutions is also
their top operational challenge. High Multiple disconnected tools for store teams/
operational costs and disconnected Low customer satisfaction scores (tie)
systems slow progress on AI and other
Difficulty accessing business insights
critical business opportunities.

Meanwhile, store associates feel the

burden of disconnected technology
— only 17% have access to a unified
view of customer data as they navigate
disconnected systems in their daily work.
This fragmentation hampers teams' ability
to provide effective service and threatens
low customer satisfaction scores.
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02 Store Associates Bad Technology and Processes Waste Associates' Time

Grapple with How Store Associates Spend Their Working Hours

Expanding Roles
25%

Store associates' roles are transforming

as dramatically as the stores they work in.
Traditional checkout duties now occupy just 28%
28% of their time, while responsibilities such Checkout

as store operations, customer service, and

fulfillment activities fill the remainder of
72 %
Other tasks 4%
their time.
23%
As duties expand, associates face mounting 20%
technological complexity.
Store Customer service Fulfillment Other
New associates must master operations & engagement & returns

an average of 16 different systems

they'll use daily — up from 12 in
2023 — and spend 26 hours on
technology training in their first
month alone.
The growing number of distinct systems
89 % 81%
of retailers say of retailers say
creates significant inefficiencies, draining the role of inefficient processes and
store associates technology drain store
productivity at a time when associates' is broadening associate productivity
responsibilities are broader than ever.
 SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 17

02 Retailers See
Unified Commerce
Unified Commerce Initiatives Are Near-Universal in Progress
as Key
Self-Assessed Retail Unified Commerce Maturity
To overcome disconnected systems,
retailers are actively pursuing unified
commerce platforms. The aim is to
connect both the front- and back-end retail 37%
27%
operations — from stores and ecommerce
12% 15%
8%
to order management and marketing 1%
— on one platform, creating a seamless
None: Exploration: Consideration: Strategization: Execution: Realization:
experience across digital and physical Not a priority; Monitoring Actively discussing Creating formal Implementing Operating unified
don't anticipate the market, viability, but don't plan, developing business/ commerce, measuring
shopping journeys. allocating resources gathering have a formal plan business case, technical strategy, benefits, gauging
information or budget seeking budget managing change future investments
While nearly 9 in 10 retailers have unified
commerce initiatives underway, only 15%
have fully realized their value. The stakes
are high: 88% say unified commerce Importance of Unified Commerce to Business Objectives Over Next Two Years
will significantly impact their goals, and a
quarter go as far as stating they can't meet
their objectives without it. 63%

25%
11%
1%

Not important Somewhat important Very important Critical

 SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 18

02 AI Ups the Ante for Retailers Navigate Hurdles to Unified Commerce

Unified Commerce Top Benefits of Unified Commerce

Retailers see unified commerce as

transformative for their operations.
Ability to power AI capabilities
Beyond immediate gains in productivity
and efficiency, unified commerce creates Increased store associate productivity
a foundation for future innovation: With
consolidated data and systems, retailers Increased operational efficiency
say they can better power AI capabilities.
Increased revenue
However, the journey to unified commerce
involves complex obstacles beyond Improved inventory and order management
cost and expertise. Many retailers must
untangle a web of legacy systems that
connect stores with digital channels. They
also often struggle with data migration and Top Challenges Faced While Implementing Unified Commerce
change management issues.

High implementation costs 43%

Limited IT resources and expertise 40%

Store-to-digital integration complexity 39%

Data migration challenges 38%

Deeply embedded legacy POS system 34%

Lack of clear ROI justification 34%

Organizational resistance to change 33%

SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 19

03
AI Agents
Poised to
Redefine Retail
 SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 20

03 AI Shakes Up the Nearly All Retailers Are Using or Evaluating AI

Retail World
2%
AI has taken retail by storm, transforming
14%
everything from customer experience to
supply chain management. Already, 84% of
retailers use AI, and only 2% have no plans 40%

for it. More innovation is underway as AI

becomes increasingly agentic — taking action 84 %
of retailers use AI
autonomously without human involvement.

85% of retailers agree

AI advancements are 45%
transforming retail.
Fully implemented AI Experimenting with AI Evaluating AI (not used yet) No plans to use AI
Most retailers intend to increase their AI
investments, with 74% simultaneously
boosting their data management investment
— reflecting how accessible, integrated data Retail AI Investments Are Growing

underpins successful AI implementation.

76 % 74 %
of retailers are
of retailers are
increasing their data
increasing their
management investments
AI investments
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03 Retailers Trust in AI Improves Employee, Shopper, and Supplier Experiences

the Benefits of AI Top Benefits of AI¹

As retailers expand AI implementations,

they're seeing benefits across every aspect
Increased employee productivity
of the business. Employee productivity tops
the list, with automation of routine tasks Improved experiences for shoppers
so employees can focus on higher-value
activities. Better shopping experiences Increased revenue
follow, which retailers can enhance
through capabilities like personalized Improved supplier relationships
recommendations.
Improved employee experience

AI also strengthens supplier relationships

by streamlining processes like inventory
management and ordering.
Agree With the Following Statements¹
AI yields clear business results: 89% of
retailers expect returns on their investments,
with similar shares reporting increased online We will get a return on our AI investments 89%

sales volume and reduced operational costs.

AI increases our online sales volume 89%

AI reduces our operating costs 85%

¹Base: Uses AI
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 22

Spotlight: Younger Shoppers Lead in Uptake

AI Adoption Follows How Often Shoppers Use AI for the Following Tasks
Generational Trends
AI-assisted shopping is in its early stages,
Frequently Occasionally Once or twice Never Don't know
but a growing number of shoppers use
the technology for product discovery,
purchasing, and customer service. 7%

Making purchases 11% 12% 66% 4%

Compared to baby boomers, millennials
and Gen Z are much more likely to infuse
AI in their shopping journeys, suggesting
Receiving customer service 11% 9% 19% 55% 5%
the technology will gain momentum as
these generations gain purchasing power.
Product discovery and inspiration 12% 10% 17% 56% 4%
Gen Z shoppers are 10x more
likely than baby boomers to
frequently use AI to discover
new products.

Gen Z Millennials Gen X Baby boomers

20% 18 % 9% 2%
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03 AI Agents Promise Retail's Agentic Transformation Is Underway

Next Wave of 4%

Retail Innovation
AI agents — systems that can work
43%
autonomously with minimal human
oversight — build on earlier AI Retailers' Adoption
foundations and represent the of AI Agents
technology’s latest innovations.

Retailers are taking notice: 43% say they

are already piloting autonomous AI, with 53%
use cases spanning the business.
Piloting Evaluating use cases No plans
Customer service is especially promising,
with agents that can field inquiries and
manage returns, among other tasks.
Top AI Agent Use Cases in Retail
Retailers also see strong potential in agents
that optimize merchant websites and
marketing materials. Other promising use Customer service skills (e.g., resolving customer inquiries through
order tracking, returns, and appointment booking)
cases extend to store operations, where
agents can support associate training and Merchant skills (e.g., tasks for merchants such as creating a
manage inventory levels. website that automatically optimizes sales)

Marketing skills (e.g., drafting emails, targeting audience segments

based on campaign briefs)

Training skills (e.g., supporting store associates through onboarding and

beyond with instructions and suggestions)

Inventory skills (e.g., automatic replenishment, product receiving,

inventory tracking, and stock level adjustments)
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Spotlight: AI Lightens the Load for Customer Service

AI in Retail
Customer Service
Shoppers say the worst retail
experience is poor customer service,
putting pressure on retailers to enhance
support — with implications for their 94 % 93 %
bottom lines. of retail customer of retail customer
service professionals service professionals
with AI say it with AI say it
74% of shoppers say they will saves time2 reduces costs2

abandon a brand after three

or fewer bad experiences.¹
AI is proving transformative for service
teams. By managing return logistics, 2Retail data from Salesforce State of Service 2024 survey.
answering common questions, prioritizing
and triaging incoming requests, and more,
AI helps retail service professionals work
more efficiently while controlling costs.

This automation of routine tasks allows

human representatives to focus on
building customer relationships and
tackling complex casework.

1Salesforce Connected Shoppers 2023

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03 Retailers Are Retailers Say Late Adopters Risk Competitive Disadvantage

Bullish on Agent
Opportunities
Retailers are optimistic about AI agents,
with a strong majority excited about
their potential to transform the industry. 81 % 75 %
of retailers trust AI to of retailers say AI agents
They see opportunities ahead and act autonomously will be essential for
with sufficient a competitive
recognize the urgency, claiming peers guardrails edge by 2026
will fall behind by 2026 if they don’t
adopt the technology.

How Retailers View AI Agents

Neutral
I am mostly excited about I am mostly nervous
60% 28% 11%
autonomous AI about autonomous AI

Neutral
Autonomous AI will bring Autonomous AI will
67% 24% 9%
mostly opportunities bring mostly danger
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03 Shoppers See Privacy and Control Increase Trust in AI Agents

Value in Agents Shopper Interest in AI Agents for the Following

Very interested Somewhat interested Not so interested Not at all interested Don't know
Shoppers gravitate toward AI agents
that perform practical, value-driven
Optimize your loyalty points 30% 40% 15% 12% 3%
activities. They show strongest interest in
Answer questions for faster
loyalty program optimization and faster 30% 41% 15% 12% 2%
customer service
customer service — tasks that offer clear,
Complete returns and exchanges 29% 38% 16% 14% 3%
immediate benefits.
Buy items when they reach your
28% 38% 17% 15% 2%
Trust will be essential for broader consumer target price

adoption of agents. Shoppers emphasize Secure high-demand products

27% 39% 17% 15% 2%
before they sell out
strong data privacy protections and want
Monitor purchased products for
control over how agents are applied — 24% 39% 19% 15% 3%
maintenance or replacement needs
whether through easy on/off switches or
Book appointments 23% 36% 21% 18% 2%
approval before agents make purchases.
Recommend complementary items
22% 38% 20% 18% 2%
based on existing products
Shoppers also seek transparency about Purchase complementary items based on
19% 33% 23% 22% 3%
how their data is used and the option of existing products
human backup when needed. Purchase recommended products
19% 28% 24% 26% 3%
on your behalf

Gen Z shoppers are 2.7x as

likely as baby boomers to want Top Factors That Increase Shoppers’ Trust in AI Agents
product recommendations
Data privacy and security protections
from AI agents (63% vs 23%).
Ability to easily turn it off/on

Require approval before any purchase

Transparency over how my data is used

Available human customer service backup

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03 Retailers Lay the Retailers Make Moves to Ensure Security and Accuracy
Groundwork for Top AI Implementation Challenges¹

More Advanced AI 1 Security/privacy concerns

Retailers are doing more than buying

2 Data quality
new software as they build a foundation
for AI agents. 3 Implementation costs

86% of retailers with AI say it will 4 Concerns about AI accuracy

restructure how they operate.
5 Lack of AI expertise
To ensure successful implementation
retailers are putting basic building blocks
in place, from defining what success looks Retailers’ Actions to Prepare for AI¹
like to figuring out how their teams will
work together. Define AI success metrics and KPIs 36%

Hire AI strategy or
35%
As systems take on more decision-making implementation consultants
processes, retailers are strengthening Upgrade technology infrastructure 33%
data protections and cleaning up existing
datasets, recognizing that input determines Enhance data security 33%

the quality of system output.

Purchase or subscribe to AI software 33%

Develop process to coordinate

33%
between business and IT

Develop employee training programs 30%

Hire AI specialists or data scientists 30%

Clean up data 26%

Set ethical guidelines 24%

1Base: AI users.
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04
Rewards Programs
Put a Check
on Declining
Shopper Loyalty
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04 High Prices Younger Shoppers Are Especially Prone to Brand-Hopping

Drive Widespread
Brand-Switching
Gen Z 81%

74 %
Consumers' loyalty is fluid, at best. Three
out of four shoppers have switched Millennials 81%
of shoppers
brands within the past year. switched brands in
the past year1 Gen Xers 74%
While high prices are the top reason
for brand defection, over 40% of Baby boomers 63%
consumers also cite poor customer
experiences and inconsistent quality.

Brand hopping is common across all

Top Reasons Consumers Stopped Buying from a Brand in the Last Year1
generations, but younger consumers are
particularly prone to it — demonstrating
how brands will need to work harder to High prices 66%
keep their rising crop of customers.
Poor customer
43%
Gen Z and millennials switch service experience

brands at 1.3x the rate of Inconsistent product or

40%
service quality
baby boomers.¹
Inconvenience 37%

Does not meet my changing needs

26%
and expectations

1 Salesforce State of the AI Connected Customer, October 2024.

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04 Diverse Programs Points Remain King, but Loyalty Program Innovation

Aim to Lock Is On the Horizon

In Loyalty Types of Loyalty Programs Shoppers Belong to

As shopper loyalty wavers, retailers are 57%

doubling down on formal programs to
32%
bolster it. 24% 19% 18% 16% 14%

67% of retailers offer a loyalty Points-based Cash back Tiered loyalty Coalition Hybrid loyalty Co-branded Fee-based
program, and 29% plan to programs programs loyalty programs credit cards loyalty programs
programs
introduce one in the next
24 months.
Shoppers belong to a wide range of
these programs. Simple points-based
rewards lead the pack, but other
incentive structures are popular as
well, such as cash-back programs

35 %
(for value-focused shoppers), tiered
programs (for a sense of exclusivity), 77 % of shoppers
and coalition programs (to earn rewards of shoppers
belong to a
belong to at least
across different stores and brands). one loyalty program
loyalty program
they’ve never used

The average shopper belongs

to four loyalty programs.
 SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 31

04 Experiential Money-Saving Perks Are the Main Adoption-Driver but

Rewards Draw Not the Only Draw

Younger
Factors that Draw Shoppers to Loyalty Programs¹

Generations Points at program's retailer/brand 57%

Points at program's partner

46%
Rising prices have pushed 66% of shoppers retailers/brands

to switch brands in the past year, making

Free shipping/delivery 42%
loyalty programs' cost-saving benefits more
appealing than ever.
Free or discounted services 37%

Shoppers overwhelmingly gravitate toward

traditional perks — earning rewards at Birthday perks 31%

favorite stores, accessing free shipping, and

receiving discounts on services. Exclusive access to sales 29%

While these core money-saving benefits Early access to products and sales 26%
drive most program participation, newer
offerings like exclusive experiences Free and/or extended returns 25%
and gamification elements have carved
out a significant following among Shoppers Attracted
Personalized offers/recommendations 22%
by Exclusive Experiences
younger shoppers.

Gen Z shoppers are over 3x

Access to limited edition products 18%
5% Baby boomers

more likely than baby boomers Access to experiences 13%

13 % Gen X
to value experiential benefits
like exclusive events and Gamification elements 10%
16 % Millennials

in-store classes.¹
16% Gen Z

1Base: Shoppers in at least one loyalty program.

 SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 32

04 Programs Deliver
Value but Require
Retailers Navigate Data Hurdles to Meet Customer Expectations
Maintenance
Loyalty programs deliver value, with 84%
of members saying such programs make
them more likely to repurchase. Yet even
successful programs need continuous 84 % 80 %
refinement, with 80% of retailers working of loyalty program
members say the of retailers say
on program optimization. programs make them they’re refining their
more likely loyalty programs1
to repurchase
For shoppers, convenience and timeliness
are crucial, and when these elements falter,
engagement can flag.

35% of shoppers belong to

a loyalty program they’ve
Top Loyalty Program Challenges
never used.
For retailers, smoothly managing
program logistics is far from simple,
requiring streamlined data operations For Shoppers For Retailers1
that many retailers are still working to
Takes too long to High maintenance
perfect. However, when loyalty programs costs
earn rewards
successfully overcome operational hurdles,
Rewards aren't Data integration &
they can create foundations for deeper worth it management issues/
Difficulty measuring
customer relationships that go well beyond Benefits expire or ROI (tie)
arrive too late to use
basic transactions.

1Base: Currently offers a loyalty program.

SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 33

Look Ahead: Retailers Expand Beyond Traditional Sales

Supplemental Retailers’ Supplemental Revenue Streams
Revenue Streams
As industry margins face pressure, loyalty Paid loyalty programs 49%
programs are becoming foundations for
innovative business models that extend Retail media networks 47%
beyond traditional retail sales.
Financial services 45%
These business models take many
forms. Media networks help retailers'
Technology services 44%
partners reach shoppers with relevant
offers. Retailers also monetize existing
Logistics services 44%
infrastructure, as those with sophisticated
technology and logistics capabilities sell
Data services 44%
access to expensive-to-build systems,
helping other companies operate without Referrals on
43%
massive investments. Some retailers third-party marketplaces

are even venturing into healthcare and

Healthcare services 39%
financial services, using physical locations
and customer relationships to expand
Travel services 37%
into everything from medical services
to credit cards.

By diversifying revenue streams,

companies are more resilient and create
new value for customers and partners.
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 34

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SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 35

Survey
Demographics
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 36

Survey Demographics: Consumers

Country Generation

Australia/New Zealand.............N=500, 6% Baby boomers

Brazil...........................................N=500, 6% (1946-1964)...........................N=1,814, 22%
Canada.......................................N=500, 6% Gen Xers
France.........................................N=500, 6% (1965-1980).......................... N=2,379, 28%
Germany....................................N=500, 6% Millennials
India............................................N=500, 6% (1981-1996)........................... N=2,697, 32%
Ireland........................................N=500, 6% Gen Z
Italy.............................................N=500, 6% (1997-2012)...........................N=1,460, 17%
Japan..........................................N=500, 6%
Mexico........................................N=500, 6% Gender
Netherlands...............................N=500, 6%
Nordics...................................... N=100, 1% Male....................................... N=4,365, 52%
Singapore...................................N=500, 6% Female....................................N=3,962, 47%
Spain...........................................N=500, 6% Other............................................N=23, >1%
Switzerland................................N=500, 6%
United Kingdom........................N=500, 6%
United States.............................N=750, 9%
SALESFORCE CO N N E C T E D S H O P P E R S R E P O R T, 6 T H E DI T I O N 37

Survey Demographics: Retailers

Country Department Retail Segment

Australia/New Zealand............. N=100, 6% Analytics or Apparel, accessories,

Brazil........................................... N=100, 6% business intelligence.................... N=73, 4% and footwear........................... N=406, 24%
Canada....................................... N=100, 6% Customer experience..................N=66, 4% Consumer electronics............ N=406, 24%
France......................................... N=100, 6% Customer service Department store.................... N=177, 10%
Germany.................................... N=100, 6% and support................................ N=115, 7% Discount or
India............................................ N=100, 6% Ecommerce or digital/ mass merchant............................. N=76, 4%
Ireland........................................ N=100, 6% omnichannel strategy............. N=499, 29% Grocery.......................................... N=75, 4%
Italy............................................. N=100, 6% Information technology Health and beauty...................N=260, 15%
Japan.......................................... N=100, 6% or technology related..................N=86, 5% Home, hardware,
Mexico........................................ N=100, 6% Marketing..................................N=264, 16% and garden.................................. N=124, 7%
Netherlands............................... N=100, 6% Retail or store operations........ N=597, 35% Outdoor and
Nordics..................................... N=100, 6% sporting goods........................... N=135, 8%
Singapore................................... N=100, 6% Company Size Other specialty retail................... N=41, 2%
Spain........................................... N=100, 6%
Switzerland................................ N=100, 6% 1 to 200 employees............... N=340, 20%
United Kingdom........................ N=100, 6% 201 to 4,999 employees...... N=1,211, 71%
United States............................. N=100, 6% 5,000+ employees.................... N= 149, 9%
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