AI boosts Cyber Week sales

Nov 28, 2024

Cyber Week is expected to drive $311-billion in global sales as consumers eagerly await holiday deals – with the use of AI and agents set to influence up to 19% of those orders – according to a new report from Salesforce.

The Salesforce Shopping Index – which analyses data from 1,5-billion global shoppers, more than 1,5-trillion page views, and hundreds of millions of unique SKUs on the Salesforce Customer 360 platform – shows that since the start of October, digital retailers using generative AI and agents increased their average order value by 7% compared to those without the technology ($117 versus $109). AI and agents were also responsible for driving 17% of global orders through personalised recommendations, targeted promotions, and smarter customer service.

Retailers using AI-powered agents during this timeframe also doubled customer service engagement, addressing complex cases faster as 30% of consumers prefer agents for speedier service.

“Agents have the potential to transform the holiday season by helping retailers provide personalised, timely, and efficient service to shoppers when they need it most,” says Zuko Mdwaba, Salesforce area vice-president/Africa executive and South Africa. “There is a wide open opportunity for digital retailers to use AI for personal shopper agents that help consumers find exactly what they’re looking for and continue to make the path to purchase an easy one.”

Salesforce’s Cyber Week 2024 predictions: Reviewing realtime aggregate data stemming from Agentforce, Commerce Cloud, Service Cloud, and Marketing Cloud, Salesforce expects to see four major trends during this year’s most critical shopping week:

  • AI steers the shopping cart: AI and agents will likely influence 19% of Cyber Week orders, accounting for $61-billion in global sales.

 

  • Cyber sales surge: Cyber Week sales are expected to reach $311-billion worldwide, accounting for 23% of all holiday purchases in 2024, and $75-billion in the US.

 

 

  • Discount rates are expected to be attractive: Average discounts will likely peak at 28% globally and 30% for the US, fueling 5% YoY sales growth.

 

    • Top discounts rates globally are expected in:
      • Beauty & Makeup – 38%
      • Skincare –  33%
      • General Apparel – 33%

 

 

  • Mobile rules digital checkouts: Mobile orders will make up 70% of sales driven by better on-the-go experiences in recent years, and presenting a new conversion opportunity with AI agents on mobile messaging apps.

 

Separately, a recent Salesforce survey found that 45% of global consumers are waiting to make purchases until Cyber Week, beginning November 26, to take advantage of the best deals of the season. This points to an opportunity for retailers to capitalise on shoppers’ excitement and drive more conversions with discounts and agentic customer service experiences.

In addition, the Salesforce Shopping Index’s early holiday findings, captured between 1 October and 14 November showed:

  • Global sales are growing: Global online sales dipped 1% year-over-year (YoY) during the last seven weeks, but rose 8% YoY in the first week of November, suggesting that consumer interest in holiday shopping is picking up pace.

 

  • Highest-growing sales categories:
    • Makeup (+10% YoY)
    • Active Footwear (+9% YoY)
    • General Handbags and Luggage (+8% YoY)

 

  • Consumers are interested in AI agents for faster customer service: Since early October, retailers who have invested in AI-powered service agents have seen double the rate of customer service engagement compared to those who have not invested in AI-powered agents.

 

  • This growth is an early indicator that agents can take on a higher and more complex case load and adequately serve customer needs.

 

  • Customers, meantime, seem open to engaging with agents. A full 30% of consumers said they would work with an AI agent if it meant faster service.

 

  • AI and agents augment the shopping experience: While a relatively new technology, major retailers are already employing AI agents to help improve shopping experiences including:

 

  • Brands like Saks are using Agentforce to streamline routine tasks such as order tracking, enabling customer service teams to focus on delivering a highly customised shopping experience that drives conversion.

 

  • Nearly one-fifth (24%) of consumers also said they’re already comfortable with AI agents shopping for them.

 

  • Discounts and consumer demand are ramping up: Discounts peaked at an average rate of 20% in the first week of November – a 17% YoY increase, indicating that retailers are gearing up for a competitive holiday season.

 

    • Online orders have also seen a 4% YoY increase, signaling a positive shift following a year of reduced consumer spending.

 

  • Chinese shopping marketplaces entice consumers with low prices: Sixty-seven percent of buyers who use apps like Shein, Temu, and TikTok Shop reported that they are planning to make holiday purchases on them this season.

 

  • The top marketplace option for shoppers is Temu, with 40% of global consumers saying they’ve made between two and five purchases on this marketplace in the last year.

 

  • Returns present a challenge and opportunity for retailers: Returns in October and November were 33% higher than the same timeframe last year, forcing retailers to take a closer look at their retention strategies and return policies to avoid losses.