In recent years, global retail has been undergoing a transformation driven by new consumer demands. According to a PwC survey, 56% of CEOs point out that changing customer preferences are the biggest challenge to business profitability. This phenomenon, intensified by the pandemic, raised expectations for a personalized, intuitive, and effective shopping experience. In response to this reality, the concept of Expectation Economy has been gaining strength, proposing a consumption model in which brands not only meet but anticipate their customers' needs at all touchpoints.
It is in the Expectation Economy landscape that we see the macro trend identified by the consultancy The Future Laboratory emerging. EQ Commerce (or Emotional Quotient Commerce) is an approach that goes beyond traditional sales and aims to transform each interaction into a predictive and proactive experience. In this macro trend, we observe the combination of the power of advanced technologies, such as artificial intelligence and augmented reality, with a qualified understanding of audience expectations and behavior. This new form of commerce addresses one of the biggest pain points of digital retail: "algorithm fatigue," when consumers become frustrated with generic recommendations and offers that do not reflect their true tastes and preferences. With this new approach, brands can interpret data instantly and personalize the shopping journey, creating a dynamic environment focused on individual satisfaction.
Among the main trends of EQ Commerce is Discovery Commerce, which transforms traditional product search into an intuitive and customized discovery. Instead of waiting for the consumer to find what they want, this strategy proactively presents items and offers that align with their profile and interests. According to Coresight Research, hyper-personalization of shopping feeds – which delivers the right product to the right customer – can increase engagement and strengthen loyalty, transforming the experience into a true competitive advantage for brands.
Another key aspect of EQ Commerce is the integration of artificial intelligence (AI), which enables large-scale customization. With 71% of retailers increasing their investments in AI, according to Total Retail 2023, 73% have specifically directed these resources to offer highly personalized content, according to Coresight Research. AI enables brands to adapt not only what is suggested but also how and when it is presented, creating satisfying interactions at relevant moments. In an environment where a click can mean migrating to a competitor's website, this type of agile, data-driven response becomes essential.
Augmented reality (AR) is an important pillar of EQ Commerce, elevating the shopping experience to a new level of interactivity and immersion. About 63% of consumers say that AR significantly improves the experience, according to a Statista survey, allowing them to view products in a dynamic and in-depth way. Major brands like Walmart and Lacoste are already using AR in accordance with the Virtual Flagship trend, creating immersive online environments that replicate aspects of the physical experience and strengthen customers' sense of exclusivity and belonging.
In this way, EQ Commerce has the ability to promote closer and emotionally connected interactions with consumers. With it, it is possible to have environments where influencers and curators participate in the digital journey, bringing brands and consumers closer in an authentic way, encouraging identification and the feeling that their preferences are valued. This creates a bond that goes beyond the commercial transaction and reinforces long-term loyalty.
In Latin America, where 50% of companies still do not feel confident in their customer experience strategies, according to a 2023 CMO Council survey, EQ Commerce stands out as a transformative model. Companies that adopt this approach, using AI and real-time behavioral data, have a greater chance of differentiating themselves and winning customers in an increasingly digital and competitive market. The promise of EQ Commerce goes beyond meeting present demands; it establishes a new paradigm of relationship between brands and consumers, where innovation and experience go hand in hand, shaping the future of retail.
