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New Report: Customer Loyalty Drops When Brands Don’t Innovate

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Customers are quick to flee slow-to-innovate brands with lagging commerce experiences, with millennials and Gen Z leading the migration. That’s the key takeaway from the 2022 Commerce Innovation Report, a new global survey from commercetools, the leading provider of headless commerce.

The survey, which queried 300 global retail business leaders, also found that almost three-quarters (73%) of shoppers will take their business elsewhere if a brand’s commerce experience does not meet their expectations, and over half prefer modern commerce experiences, defined by evolving customer preferences, payment options, and digital devices. Yet despite all that, 45% of respondents say they only dedicate a minimum amount of their budget to improving or expanding commerce capabilities.

Other key findings include:

  • Nearly three-quarters of respondents (74%) recognize that failure to adopt emerging commerce solutions will negatively impact areas of the business;
  • 40% of respondents say their company’s current commerce solutions hinder the sale of their products or services, and 49% of this group feel this issue has existed for over a year;
  • Over one-third of businesses are struggling with the ramifications of an outdated commerce solution, signifying the impact a lack of innovation has on customer experience, sales, and brand loyalty;
  • More than half of respondents (52%) said they’ve decided not to implement a new commerce capability due to budgetary constraints.

Jen Jones, Chief Marketing Officer of commercetools said: 

With endless options and the power of the internet at their fingertips, consumers are continuously redefining what the ideal customer experience looks like. The brands with longevity are the ones that are taking this shift into account from both a technological and cultural perspective, and are evolving to meet customer demands. Change is constant in the modern commerce ecosystem. Brands need to be nimble and meet customers where they are. This means having a finger on the pulse of their customers’ shopping behaviors and adopting the commerce experiences that resonate the best among them. Anyone who thinks they can sit still and not evolve amid changing demands will be out of business shortly.

Resistance to Innovation Is Driving Customers Away and Damaging Bottom Lines

Businesses are beginning to understand that if they do not jump on trends and adopt the technology that enables them to provide these next-generation experiences at every touchpoint, then it will be impossible to remain competitive in today’s market.

According to the report:

  • The majority of respondents (70%) said they’re most concerned about millennials, a cohort with over $2.5 trillion in spending power, taking their business elsewhere, followed by Gen Z (54%) and Gen X (48%);
  • Nearly three-quarters of respondents (74%) recognize that failure to adopt emerging commerce solutions will negatively impact their business;
  • 40% of respondents say their company’s commerce solutions hinder the sale of their products or services;
  • Only 25% of respondent organizations offer next-day shipping, and even less offer loyalty programs (21%);
  • Despite customers expressing interest in a variety of payment options, less than half offer multiple payment methods, and less than 20% of respondents offer one-click checkout (18%), and even fewer (16%) offer Buy Now Pay Later and cashback (14%).

Sree Sreedhararaj, Chief Technology Officer at Sephora said:

Sephora pioneered prestige omni-retail, and we know that continued investment in commerce innovation is key to our sustained growth. Commercetools enables us to not only scale quickly and efficiently, but constantly refine the high caliber experiences that our customers expect, deserve, and are loyal to.

To download the 2022 Commerce Innovation Report, please visit the landing page here. To learn more about commercetools, please visit

About commercetools

The inventor of headless commerce, commercetools is an innovative technology disruptor that has established itself as an industry-leading eCommerce software provider.

Today, some of the world’s most iconic brands and growth-focused businesses trust commercetools’ powerful, flexible, scalable solutions to support their ever-evolving digital commerce needs. As the visionaries leading the modern MACH (Microservices-based, API-first, Cloud-native and Headless) architecture movement, commercetools provides customers with the agility to innovate and iterate on the fly, merge on and off-line channels, drive higher revenue, and future-proof their eCommerce business.

Based in Munich, Germany, with offices in Europe, Asia, and the United States, commercetools is singularly focused on leading a future of limitless commerce possibilities.

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