Algolia's State of Search Report Reveals Retail's Ability to Drive Higher Conversions through Modern Search
Algolia, the leading API Platform for Search & Dynamic Experiences, today released its State of Search Report, compiled in partnership with B2B research specialists, Coleman Parkes. This second 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 technologies.
"Under-investing in modern digital commerce is a critical mistake that we continue to see in the retail industry," said Jason McClelland, CMO of Algolia. "If you can't accurately serve online shoppers with what they want at the moment they want it, they'll immediately move on to the next site. In this report, retailers will find out how search technologies can make or break a retailer's ability to deliver on the last mile of customer experience."
This State of Search Report reveals how successful retailers are using search to beat their competition. Key highlights include:
Advanced Search Creating Clear Winners
Only 13% of retailers claim to offer shoppers an advanced search experience
The 87% of retailers with basic or intermediate search experiences also noted a higher propensity to lose shoppers through churn and poor engagement
Four in five (79%) retailers have little or no personalization or recommendation functionality on their commerce site; only 26% noted the use of AI to optimize search results relevance
Preparing for Holiday Surges in Demand Proves Challenging
Two in five (39%) retailers admit they are not prepared to respond to new surges in consumer demand
Sixty-five percent (65%) of retailers feel their ability to meet last year's Black Friday demand needed to be better handled; 47% were unable to scale to meet the demand, and 25% wanted to be able to iterate and merchandise better
Retailers are Equating Quality Search with a Frictionless Customer Experience
When asked to identify the top areas impacted by search, retailers prioritized customer service (79%), frictionless experience on the website (76%), and product availability (75%)
Over a third (35%) of retailers have increased their search investment in the last 12 months, at an average of 11%, and 44% of businesses will increase search spend over the next 12 months
Eighty-one percent (81%) of retailers noted that Covid-19 has impacted their decision to advance their search function
Aligning Search Technologies to a Headless Architecture
Forty-nine percent (49%) of retailers recognize that headless architecture allows for time saving and 42% recognize that it creates a faster time to market
Ninety percent (90%) of retailers think that the fit of their search technology to a headless architecture is critical or somewhat important, however, only 23% of retailers think that the fit of their search solution in a headless architecture is ideal
Fifty-six percent (56%) of respondents recognized that API-first solutions create improved services and 47% of respondents noted ease of use
"The data shows that retailers understand the value of search and headless architecture," said Ian Parkes, Founder and Director at Coleman Parkes Research Ltd. "Retailers' future investments in search technology need to focus on solutions that are compatible with headless architectures. This will help address many of the pain points that were uncovered throughout the State of Search Report."
Algolia provides an API platform for dynamic experiences that enable organizations to predict intent and deliver results. Algolia achieves this with an API-first approach that allows developers and business teams to surface relevant content when wanted ? satisfying the demand for instant gratification ? and building and optimizing online experiences that enhance online engagement, increase conversion rates, and enrich lifetime value to generate profitable growth. More than 10,000 companies including Under Armour, Lacoste, Birchbox, Stripe, Slack, Medium, and Zendesk rely on Algolia to manage over 1.5 trillion search queries a year. Algolia is headquartered in San Francisco with offices in New York, Atlanta, Paris, London, and Bucharest. To learn more, visit www.algolia.com.
We are excited to announce Paul Lemmen is returning to Humanetics as Global Business Development Manager. Paul first joined Humanetics in 1999 and led the development of numerous programs like the FLexPLi, Q Dummies and THORAX for THOR ATDs. Paul...
Xiao-I Corporation ("Xiao-I" or the "Company"), a leading company in the field of artificial intelligence, is pleased to announce its recent significant progress in its latest product line, virtual Try-on technology (OOTDiffusion). The OOTDiffusion...
BACKGROUND:Imagine streaming in 8K from multiple devices at once, downloading multiplayer games, or even sharing your own videos at multi-gigabit speeds. This is now a typical need in the modern home, and it's all made possible with fiber-optic...
Amazon Web Services, Inc. (AWS), an Amazon.com, Inc. company , today announced new Amazon Bedrock innovations that offer customers the easiest, fastest, and most secure way to develop advanced generative artificial intelligence (AI) applications and...
EvolutionIQ, the market-leading Claims Guidance platform for Disability and Workers' Compensation lines of insurance, today announced the release of MedHub, an AI-powered medical summarization and synthesis solution integrated into EvolutionIQ's...