By Warren Cowan, Founder & CEO at FoundIt!
The global retail sector now finds itself in the midst of a sea change in mindset – and it will be those willing to evolve and embrace new ways of customer-centric trading that can expect to reap the benefits.
Recent ONS statistics painted a startling picture of retailers that either barely held on or unexpectedly thrived against the odds last year. ONS’ research revealed that during the peak 2024 festive shopping season, sales fell by 0.3% despite market predictions of a 0.4% rise as shoppers stocked up for the holidays. With consumers spending 18 per cent more than they were five years ago as costs continue to spiral upwards, retailers need to do everything in their power to make the customer experience as seamless and satisfying as possible to stand a chance of winning business in a very tough climate.
Intent-led commerce is the solution to the biggest challenge of all: securing and retaining customers’ spend and loyalty. Retailers like M&S in the UK and Neiman Marcus in the US have now begun to shift their strategic focus away from prioritising traffic, footfall and ever more product choice to understanding their customers’ intent – in other words, their ‘mission’. These retailers are creating contextual customer journeys that help shoppers easily discover, find and buy the products they want. This new eCommerce strategy to meet changing customer shopping habits is the key to tackling a testing retail market.
What is intent-led commerce?
Intent-led commerce uses customer intent signals to shape each stage of a customer’s journey. From discovery through to purchase, the customer should be in the driving seat: intent-led commerce utilises a wealth of customer data to successfully pre-empt consumer wants and needs, leading shoppers towards their desired destination with minimal mental frustration on their part.
It’s a huge shift for eCommerce in particular, which has historically always been built around catalogues not customers. Now, the customer comes first and the product catalogue plays a supporting role. Retailers must change the dynamic that has worked in the past but which is no longer fit for purpose: intent-led commerce is centered around delighting, supporting and serving customers above all else.
The retailers that will pull ahead in 2025 and beyond won’t just be selling to their shoppers: they will take the necessary steps to truly understand them. They will crack the code of customer needs and deliver a perfect blend of relevant experiences, omnichannel excellence and operational precision. A focus on relevance and resonance can outweigh even the toughest macroeconomic challenges: M&S boasted a 5.6% increase in group sales with online jumping by 11.6% in its Q4 results as they continued to invest in their intent-led growth strategy.
The opportunity is right there for the taking for any retailer that places customer intent at the heart of commercial strategies.
Inspired, contextualised experiences are the new norm
Today’s customers are yearning to be inspired by the brands that they deal with: Netflix, the undisputed leader in customer experience, has provided an extremely high benchmark that nearly all consumers are now extremely familiar with. Customers want to be presented with clear options that match their unique preferences and personalities: the days of customers browsing websites in a linear fashion, wading through pages and pages of products to find what they’re looking for, are long gone.
Customers need to be guided and inspired with contextualised experiences. They’re not just searching for a product, they’re trying to solve a problem, fulfil a mission, create a mood, or feel some kind of way – and that’s why intent-led commerce is becoming so powerful.
Many retailers treat product pages as the end of the customer’s journey, yet in reality it’s really only the beginning. Over half of customers who land on a product page first use it to explore and educate themselves about available options. Often, they’re not quite ready to buy but they are willing to be inspired: product pages can prove to be a powerful platform leading towards customer discovery. These pages need to engage and excite, and be supported behind-the-scenes by a system that drives discovery . When a customer finds something they like, the next question that should be quickly addressed for them is: how do I find more like this?
Every product a customer views should lead them towards more relevant products, creating an engaging discovery journey and encouraging exploration. Intent-led commerce enriches every touchpoint with contextual data, so the customer always feels guided and never lost.
Customers’ expectations are constantly changing
Customers are not product experts. They won’t necessarily shop the way that retailers expect them to, nor should they: their shopping experience should be exciting, inspiring and satisfying. Most people struggle to articulate exactly what they’re looking for but they have a feel for it: intent-led commerce runs with that feeling to deliver on the customers’ wants in the most seamless way possible. Retailers must face up to the fact that the world of commerce has changed and customer needs have shifted, and that their approach must evolve too in order to survive. In the face of shrinking markets and skyrocketing costs, it will only be those that choose to lead with intent that will lead the way into a bright future for commerce.
