Salesforce recently announced that online holiday sales reached a record $1.2 trillion globally during the 2024 season. This data, released on Monday, highlights the significant role of artificial intelligence (AI) in enhancing the shopping experience.
Caila Schwartz, Director of Consumer Insights at Salesforce, emphasised that AI-driven tools influenced $229 billion, or 19 per cent, of all online orders, showcasing a remarkable shift in consumer engagement.
The AI Advantage
The surge in online shopping was fueled by increased mobile and social commerce, alongside a rise in consumer spending after a period of saving. Retailers that embraced AI saw substantial benefits.
“Retailers who have embraced AI and agents are already seeing the benefits,” Schwartz noted, indicating that these tools will be essential for minimising revenue losses from returns and re-engaging customers.
Despite the impressive sales figures, the report also highlighted a concerning trend: returns increased by 28 per cent compared to the previous year, amounting to $122 billion. This rise could impact overall profit margins for retailers as they navigate the post-holiday landscape.
Embracing change
Salesforce’s findings are based on an analysis of over 1.5 billion shoppers and 1.6 trillion page views across its platform during the holiday season.
The data reveals that many retailers utilised AI-powered chat for customer service, with a 42 per cent increase in usage compared to the previous year.
These advancements allowed for personalised recommendations and improved customer support, making shopping more efficient and enjoyable.
Salesforce’s founder, Marc Benioff, has long championed the integration of technology into business practices. His vision has paved the way for innovations like AI-driven customer relationship management, which enables retailers to adapt effectively to changing consumer behaviours.6