Almost a third of shoppers in the UK say that AI-driven personalization boosts their loyalty to brands, according to Bazaarvoice’s recent report. Their Shopper Experience Index reveals that 31% of these consumers feel that loyalty rewards driven by AI strengthen their connection to brands, while 28% admit that tailored rewards encourage them to shop more frequently.
Plus, over 40% of shoppers reported that personalized discounts make them more likely to share products on social media. Zarina Stanford, CMO of Bazaarvoice, emphasizes that in a world overflowing with options, personalization and context set brands apart. She points out that offering the right rewards at the right time creates relevant experiences that resonate with customers, transforming generic discounts into meaningful value.
AI isn’t just reshaping retail; it’s becoming a part of daily life for many individuals and businesses, especially with tools like generative AI. Over the past decade, personalization has evolved in retail as consumers demand more tailored experiences. Younger shoppers, particularly those aged 18 to 34, increasingly look to social media for purchasing inspiration.
Meanwhile, many shoppers are shifting away from online shopping as physical discount stores provide better deals. In this competitive landscape, online retailers are stepping up their game with loyalty schemes and personalized offers to draw consumers back.
When it comes to online shopping, user-generated content is gaining traction among UK consumers. More than half find reviews helpful, and 45% prefer products with at least 11 to 50 reviews before considering a purchase. Around 70% of shoppers value content from their peers when deciding what to buy, with 12% saying it definitely influences their behavior.
Moreover, 16% of shoppers are likely to make a purchase based on user-generated content, including reviews, ratings, images, and videos. Stanford notes that retailers should leverage personalization alongside timely offers to boost purchases, highlighting that AI tools like product recommendations can enhance these personalized experiences. These tools streamline the shopping journey by delivering tailored information more efficiently than traditional methods.
This year’s Retail Federation Big Show showcased diverse AI applications in retail, from creating digital twins of stores for inventory management to helping staff access and interpret product data easily. As retailers integrate these technologies, they face an inevitable shift toward using AI to enhance both purchases and productivity across the industry.