AI-Driven Personalisation Appealing to UK Shoppers, Says Research
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- 18 Feb 2025
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Recent research from Bazaarvoice reveals that nearly a third of UK shoppers believe that artificial intelligence (AI) driven personalisation significantly enhances their loyalty to brands. According to the Shopper Experience Index report, 31% of respondents indicated that AI-assisted loyalty rewards increase their brand loyalty, while 28% stated that tailored rewards encourage them to shop more frequently.
The findings highlight a growing trend among consumers who are increasingly influenced by personalised experiences. Over 40% of UK shoppers reported that personalised discounts or offers make them more likely to share a product or brand on social media. Zarina Stanford, CMO of Bazaarvoice, emphasized the importance of personalisation in today’s market, stating, “In an era where consumers are inundated with choices, personalisation and contextualisation can prove to be a differentiator for brand loyalty and customer engagement.”
Stanford explained that personalised offers and rewards create seamless and relevant experiences, moving beyond generic discounts to deliver meaningful value tailored to individual preferences. This shift towards personalisation is a natural evolution in retail, especially as younger consumers, who are gaining spending power, increasingly seek inspiration from social media.
As shopping habits evolve, many consumers aged 18 to 34 are turning away from online shopping due to the attractive deals offered by physical discount stores. This shift has prompted online retailers to enhance their strategies, focusing on loyalty schemes and personalised deals to entice shoppers back to their platforms.
The importance of user-generated content is also on the rise, with more than half of UK shoppers finding reviews useful. 45% of respondents stated that they prefer products with between 11 and 50 reviews before considering a purchase. Additionally, nearly 70% of shoppers find content generated by other consumers helpful in their decision-making process, with 12% acknowledging that it significantly impacts their shopping behavior.
Stanford noted that retailers must leverage personalisation, combined with timely engagement, to encourage more purchases. AI can facilitate this by providing tools like product recommendations and targeted offers, which present a significant opportunity to enhance personalised shopping experiences. “AI-infused tools save time and deliver tailored information to shoppers that brands might not otherwise have the resources or ability to provide,” she added.
Beyond personalisation, AI is transforming various aspects of retail. At this year’s Retail Federation Big Show, retailers showcased innovative AI applications, such as creating “digital twins” of stores to monitor inventory and assisting retail associates in accessing and interpreting product data more efficiently.
As AI continues to dominate the next wave of technological adoption, its role in enhancing customer experiences and driving sales is becoming increasingly evident. Retailers that embrace AI-driven personalisation and user-generated content are likely to see improved customer loyalty and engagement, ultimately leading to increased sales and productivity. The future of retail is not just about selling products; it’s about creating meaningful, personalised experiences that resonate with consumers in an ever-evolving marketplace.
