Information Overload Causing Frequent Basket Abandonment in Retail, Consumer Goods, Travel Purchases: Report

A recent research by Accenture titled ‘The Empowered Consumer’ is based on a survey of 19,000 consumers across 12 countries that highlights the issue of ‘information overload’, with 76 per cent of consumers in India feeling inundated by too many choices and 74 per cent saying they are bombarded by advertising, resulting in 88 per cent abandoning purchases in the last three months of 2023.

The report offers fresh insights into consumers’ decision-making experiences across the retail, travel, and consumer goods industries. Amid competing claims, messages, advertising, choices, recommendations, algorithms, and apps, it emphasises an urgent need for brands to tap into the transformative power of generative AI (gen AI) to reduce the ‘noise’ around decision-making and increase engagement, loyalty and sales.

The research also found that most people (67 per cent) in India see no improvement or even see an increase in the time and effort required to make a purchase decision. This is comprised of the 40 per cent who think it has got harder, and 28 per cent who see no change. 33 per cent think it takes less time and effort.

Looking across categories, the research also points to the challenges that consumers experience when trying to make purchase decisions. These are not confined to big-ticket items. For example, buying snacks is harder than buying the rest of the weekly groceries; buying a moisturiser is on par with buying a washing machine; choosing to buy probiotics is easier than selecting a loan and buying any type of beverage is as challenging as booking travel.

Vineet R Ahuja, MD & Lead – Strategy & Consulting, Accenture in India says, “Our survey shows that Indian shoppers are experiencing greater ‘decision stress’ at every stage of the buying journey. Consumer-facing companies will need to rethink how products and services are branded and marketed, making it easier for shoppers to navigate through the noise and make confident purchase decisions. With new technologies such as generative AI, there’s a huge opportunity to not only become data-powered but also delightfully human in a way that has just not been possible until now.”

 Reinvention In The Age Of Generative AI

The report states that the empowerment of consumers through generative AI, other technologies and new ways of working will shift how people think about brands. Companies can make fundamental shifts across discovery, conversion and loyalty to reinvent decision making process and the relationships they have with consumers and the role they play in their lives. Early mover advantage will be especially important for consumer-facing companies intent on capturing value from gen AI across all parts of the business quickly, and at scale.

Amneet Singh, MD & L – Products, Accenture in India adds, “Overall, the use of generative AI and AI-powered advisors in retail and consumer goods can enable companies to better understand their customers, deliver relevant and engaging experiences, and drive business growth. In fact, it offers an opportunity to capture the entire purchasing journey, from inspiration to ideation to transaction, as part of a single, seamless, natural conversation.”

According to the report, consumers themselves are increasingly seeking ways to lighten the workload and are starting to see how gen AI might take on some of the leg work. Accenture’s observation, based on conversations with executives across industries, is that consumers are on track to adopt generative AI-powered advisors rapidly and at scale over the next two years. Indeed, a majority (82%) of survey respondents in India said they’re open to using conversational generative AI solutions for advice, support, guidance, recommendations, queries, among others while shopping.

The report also emphasises the importance of looking at the core operational processes holistically and using generative AI to unlock value at scale. For example, innovative travel companies are examining how reinventing the booking process can act as a catalyst for unlocking value across the entire travel experience.

Deepening Relationships With Consumers

Getting the brilliant basics right remains table stakes when it comes to delivering shopping experiences that keep consumers coming back. The survey found that while eight in 10 (79 per cent) of consumers in India find some part of the shopping experience fun or exciting, 74 per cent felt frustrated and disappointed the product they want to buy is out of stock. There is an opportunity for companies to use generative AI tools and assistants to enhance the value exchange with consumers, and in the process, close the trust gap and cultivate loyalty.