Artificial Intelligence is increasingly influencing how brands approach personalisation and loyalty, with data showing that tailored offers and rewards are not just enhancing customer experience, they’re driving real business results.
According to Bazaarvoice’s latest Shopper Experience Index, 44% of UK shoppers say personalised discounts and promotional offers are the most influential content when it comes to sharing a product or brand on social media. Additionally, 31% say personalised loyalty rewards make them feel valued and enhance their brand loyalty, while 28% report that such rewards motivate them to shop more frequently.
Brands are taking note. Research from Antavo reveals that 50% of businesses plan to incorporate AI into their loyalty programmes, leveraging the technology to deliver tailored recommendations, seamless experiences, and deeper customer engagement. Meanwhile, Salesforce data highlights AI’s growing impact on purchasing decisions, with AI-driven sales reaching $229bn globally between November and December 2024 – up from $199bn in 2023.
AI-infused tools like product recommendations, targeted offers and social proofing present a significant opportunity to amplify these personalised, relevant, contextual experiences. They can save time and deliver tailored information to shoppers that brands might not otherwise have the resources or ability to provide.
Zarina Stanford, CMO at Bazaarvoice, commented: “In an era where consumers are inundated with choices, personalisation and contextualisation can prove to be a differentiator for brand loyalty and customer engagement. Why? It creates seamless and relevant experiences. Personalised and contextual (right time, right place, right form) offers and rewards go beyond generic discounts, they shape consumer decisions by delivering meaningful value tailored to individual preferences. Our data reveals that 44% of UK shoppers say personalised discounts and promotional offers are the most influential content when it comes to sharing a product or brand on their social media. Additionally, 31% of UK shoppers say personalised loyalty rewards make them feel valued and enhance their loyalty to a brand, while 28% report that such rewards motivate them to shop more frequently. The key is timing and placing these personalised offers i.e. contextualised will be key.
“These insights underline the growing expectation from consumers for loyalty programmes to provide more than just rewards – they want recognition and relevance. By offering personalised and contextual experiences, brands can foster a deeper sense of trust and engagement, creating a cycle of repeat business and advocacy that fit the needs of the consumers. In today’s competitive marketplace, a strong, personalised and relevant loyalty program not only retains customers but also builds lasting relationships that feel personal and valuable.
“Using AI in this way is a win-win for brands and consumers: It streamlines operations for sellers and ensures shoppers have the information they need to make informed decisions. The caveat and major consideration is ensuring content authenticity, as brand equity and trust are on the line.”
NAM Implications:
- One of the basics of needs-based-selling…
- (or even helping people buy…)
- i.e. starts with identifying a potential customer’s needs…
- …and then ideally delivers a solution that is tailored to those needs…
- …but in practice, can be a tweaking of existing features to approximate those needs.
- AI adds muscle to the process…
- …identifying needs with greater fact-based precision.
- However, much still depends on the business’s ability to adjust and communicate the offer to fit.
- (a final benefit might be AI’s ability to identify where we still got it wrong…?)
