Coveo, the leading enterprise AI platform, has released its fourth annual Coveo CX Industry Report, revealing that search functionality has the most significant impact on customer experience and brand perception. The report, titled “Is GenAI the Missing Piece to a Connected Customer Experience?” is based on a survey of 4,000 U.S. and U.K. adults who use a computer at work in companies with over 5,000 employees.
Key Insights from the Report
According to the survey, 61% of respondents indicated that quickly finding what they sought, along with supporting content, significantly influenced their perception of a company. This underscores the crucial role of effective search functions in shaping both customer experience and brand reputation. In today’s digital age, consumers expect instantaneous and accurate search results that cater directly to their needs. When companies deliver on these expectations, they not only enhance user satisfaction but also build trust and loyalty, solidifying their standing in a competitive market.
The report further revealed that 42% of respondents prefer to go directly to a company’s website or help center for information, rather than using search engines like Google or emerging GenAI tools such as ChatGPT. This preference highlights the importance of a well-organized and user-friendly company website. It suggests that consumers view brand-specific sites as more authoritative and reliable sources of information compared to general search engines. This preference can be attributed to the direct control companies have over the quality and relevance of the content on their own platforms.
Interestingly, while only 5% of respondents currently use GenAI tools as their first choice for search, a significant 72% expect their digital experience to evolve with trends like GenAI. This expectation indicates a growing awareness and anticipation of the benefits that AI technologies can bring to search functionalities. GenAI tools have the potential to provide more personalized and contextually relevant results, thereby enhancing the user experience. As these tools become more integrated into digital platforms, consumers are likely to demand more intuitive and intelligent search capabilities that can understand and predict their needs with greater accuracy.
The findings suggest that businesses must prioritize the development and integration of advanced search technologies to meet evolving consumer expectations. By doing so, they can improve customer satisfaction, enhance brand perception, and maintain a competitive edge in an increasingly digital marketplace. As the landscape of digital experiences continues to shift, companies that invest in innovative search solutions and leverage the power of AI will be better positioned to engage and retain their customer base.
Coveo CX Industry Report 2024 (CNW Group/Coveo Solutions Inc.)
The Role of AI in Enhancing Search Experience
Coveo’s EVP of Global Customer Experience, Patrick Martin, emphasized the importance of integrating AI search and generative answering into brand websites. “Search is the throughline for the entire digital experience,” Martin said. “People see brand sites as more authoritative than Google search. Embedding AI search and generative answering into sites has never been more important. The search bar is transforming into an intent bar or advisory bar, providing a window for brands to interact directly with their customers in different ways to deliver better experiences.”
Challenges and Expectations in Digital Customer Experience
The report reveals that customers expect online experiences to be as good as in-person interactions, yet many still find digital experiences lacking. For the third consecutive year, 91% of respondents expected their online experience to match or surpass traditional in-store experiences. However, 50% reported that website navigation is often complex and slow, with search results frequently being irrelevant.
Relevant and tailored results are key to reducing frustration during searches. About 35% of respondents highlighted that the biggest issue they encountered was “too many choices, difficult to filter or irrelevant filtering options.” This indicates that despite advancements, overwhelming choice continues to be a significant problem in digital search experiences.
Social Media’s Role in the Customer Journey
While social media is effective in sparking interest, websites remain critical for conversions. The report found that 39% of respondents often discover new products on social media, but only 14% convert directly through these platforms. Instead, 45% prefer to navigate to and convert via the brand’s website, showing a clear preference for trusted sources.
Virtual Assistants and AI Integration
The integration of AI in customer service is becoming increasingly important. About 49% of respondents expect virtual shopping assistants to help with product selection or troubleshooting issues. Moreover, 37% expect ChatGPT and generative answering tools to evolve their online shopping experience by providing educational content before making a purchase decision.
Human Interaction Still Valued
Despite the push towards automation, many customers still prefer human interaction for complex issues. The survey found that 35% of respondents preferred human assistance regardless of the issue’s complexity, while 31% differentiated between easy issues, favoring self-service, and complex issues, preferring a live agent.
Search Is Still King: 42% Prefer Company Websites Over Google
When people need information, search remains the gold standard. A significant 42% of individuals go directly to a company’s website or help center, while another 37% prefer Google. The survey revealed a clear age split: older age groups, with 46% of Gen X and 59% of Baby Boomers, favoring company websites or help centers. In contrast, younger age groups, including 36% of Gen Z and 42% of Millennials, tend to go straight to Google.
Generative AI tools like ChatGPT are currently the top choice for only 5% of users, likely because ChatGPT is still a relatively isolated tool. However, nearly three-quarters (72%) of respondents expect their digital experiences to evolve with trends like generative AI.
As highlighted throughout this report, search is the backbone of the entire digital experience. Generative answering should be firmly rooted in search capabilities. Given that consumers perceive brand sites as more authoritative than Google searches, incorporating proactive elements such as intelligent search and generative answering on your sites has never been more critical. In our current generative era, the search bar evolves into much more than just a search function; it becomes an intent bar, a conversation bar, and an advisory bar—a vital window for interacting with your customers.
Data Sharing and Personalization
Customers are willing to share their data if it enhances their online experience. About 65% of respondents said they would share data if it meant receiving better deals and offers. This willingness highlights the importance of trust and relevance in data-driven personalization strategies.
For a detailed analysis and insights, the full Coveo 2024 CX Industry Report can be downloaded from the Coveo website.
Coveo is committed to transforming the enterprise digital experience through AI-powered search, recommendations, and personalization. The company’s platform is designed to unify content and deliver a trusted generative experience at every touchpoint, enhancing user satisfaction and driving superior business outcomes.
Coveo’s platform is ISO 27001 and ISO 27018 certified, SOC2 compliant, HIPAA compatible, and offers a 99.999% SLA. The company is also a Salesforce ISV Partner, SAP Endorsed? App, Adobe Gold Partner, MACH Alliance member, and Genesys AppFoundry ISV Partner.
For more information about Coveo and its AI-driven solutions, visit the Coveo website.
