Technology

Salesforce Data Highlights AI's Role in Achieving $61 Billion in Global Sales

Salesforce (NYSE: CRM) has revealed significant insights into Cyber Week shopping trends, projecting a total of $311 billion in global sales, with artificial intelligence (AI) playing a pivotal role. According to Salesforce's data, AI is expected to influence 19% of global orders, driving an impressive $61 billion in sales.

The Salesforce Shopping Index, which analyzes activity from 1.5 billion global shoppers and over 1.5 trillion page views, found that retailers using AI and agents have seen a 7% increase in average order values since October. Shoppers engaging with these technologies spent an average of $117 per order compared to $109 for those shopping without AI-driven assistance.

Key Cyber Week 2024 Predictions by Salesforce

• AI Impact: AI and digital agents are forecasted to influence 19% of Cyber Week orders, contributing to $61 billion in global sales.

• Sales Growth: Cyber Week sales are anticipated to reach $311 billion worldwide, making up 23% of all holiday sales, with $75 billion generated in the United States.

• Discounts at Their Peak: Average global discount rates are expected to hit 28%, with U.S. rates reaching 30%.

• Category Leaders in Discounts: Beauty and makeup (38%), skincare (33%), and general apparel (33%) are predicted to lead discount trends globally.

• Mobile Dominance: Mobile devices are projected to account for 70% of all sales, bolstered by AI agents enhancing the mobile shopping experience.

AI Enhances Shopping Experiences

Retailers leveraging AI-powered tools reported remarkable benefits:

• Efficiency Gains: Retailers using AI-driven agents doubled their customer service engagement, handling complex cases faster. Approximately 30% of consumers opted for AI agents for quicker service.

• Personalization at Scale: AI-powered solutions delivered targeted promotions and personalized recommendations, driving higher conversion rates.

• Sustainability and Cost Efficiency: Retailers like Saks utilized Salesforce’s Agentforce platform to streamline order tracking, allowing customer service teams to focus on personalized shopper experiences.

Michael Affronti, SVP and GM of Commerce Cloud at Salesforce, emphasized the transformative potential of AI in retail: “Agents have the potential to transform the holiday season by providing personalized, timely, and efficient service. AI can act as a personal shopping assistant, helping consumers find exactly what they need, simplifying the path to purchase.”

Consumer Behavior Trends

• Holiday Deal Enthusiasm: A Salesforce survey revealed that 45% of global consumers are holding off on purchases until Cyber Week to secure the best deals.

• Category Growth: Sales of makeup (+10% YoY), active footwear (+9% YoY), and handbags/luggage (+8% YoY) have seen the most growth during early holiday shopping.

• Returns Challenge: Returns surged 33% in October and November compared to last year, prompting retailers to refine return strategies.

Global Market Trends

Chinese marketplaces like Shein, Temu, and TikTok Shop continue to attract consumers with competitive pricing. Temu emerged as a leader, with 40% of global shoppers reporting multiple purchases on the platform in the past year.

Salesforce Perspective

“November has marked a turning point for holiday shopping. With nearly half of consumers waiting for Cyber Week and a quarter of holiday sales concentrated during these days, it’s crucial for retailers to maximize opportunities using AI and agents,” stated Caila Schwartz, Director of Consumer Insights and Strategy at Salesforce.

• Tags
• #Business
• #Magazine
• #Lifestyle