Algolia, the only end-to-end AI-First Search and Discovery Platform, today released its Ecommerce Site Search Trends 2023 report, compiled in partnership with B2B research specialist, Coleman Parkes Research. This third annual report reveals insights from 900 technical and business decision-makers from omnichannel and digital retailers with global revenues of $100M+, exploring the current usage, investment, and value of search, personalization, and hybrid retail strategies.
“Search is a powerful tool that unlocks conversion opportunities, leads to repeat business, and drives loyalty, ultimately increasing revenue,” said Piyush Patel, Chief Strategic Business Development Officer, Algolia. “However, almost half (47%) of businesses reported that they have yet to invest or have under-invested in search and discovery, missing a critical opportunity to improve customer experience and drive increased revenue. As consumer expectations continue to rise, retailers that adopt AI search that understands intent will deliver more relevant search results and give themselves a tremendous advantage for years to come.”
This Ecommerce Site Search Trends 2023 report reveals how retailers are investing in search to future-proof their ecommerce experiences. Key highlights include:
Sizing Up Search Investments
- Forty-two percent (42%) of retailers indicate that they accelerated investment into search during the previous 12 months
- Although over 50% of retailers said that an increase in revenue was the driver for search implementation and 71% of retailers who have implemented sophisticated search capabilities report that search has helped drive revenue, almost half of retailers (47%) have yet to sufficiently invest in search
In-House Challenges Remain
- Despite critical benefits like fast implementation and continuous updates without disruptions, just 27% of retailers opt for off-the-shelf search SaaS offerings, while the majority (73%) build search in-house or in collaboration with a third party
- Two in five (41%) of retailers leveraging in-house or third-party partners say they lack the expertise needed, and just 1% note that they do not face any challenges related to search development
All Eyes on Personalization
- Most retailers (71%) consider personalization to be a large or integral part of their business for the next 12 months
- In terms of the personalization experience, personalized shopping profiles are the most prevalent offer (73% of retailers leverage), followed by subscription to email messaging programs in exchange for a more personalized experience (50%)
The Race to Meet Customer Demand
- The survey reveals that 46% of retailers implemented search in an effort to meet demand
- Readying supply chain/inventory management is the most common form of preparation for increasing online sales (52%), followed closely by investing in site search (46%)
State of Omnichannel and Hybrid Retail Models
- To optimize the shopping experience for online and offline consumers, nearly 9 in 10 retailers (87%) operate a hybrid retail model
- Despite explosive demand for omnichannel retail experiences, 51% of retailers have yet to adopt omnichannel strategies
“This report emphasizes a critical truth – strategic investment in search and personalization will be absolutely pivotal to a company’s ability to meet customer demand going forward,” said Andy Easton, Research Director, at Coleman Parkes Research Ltd. “Retailers and ecommerce leaders that prioritize these technologies as an integral part of their businesses will excel regardless of economic turbulence and ever-evolving consumer behavior.”
Click here to access the full copy of the Ecommerce Site Search Trends 2023 report.
Discover the latest marketing tech tools and techniques with Martech News. Follow us on MTC Podcast for new episodes and updates.