AI-driven personalisation 'is key to the future of loyalty'

Anyone in any doubt over whether to invest in AI tools for personalisation need look no further than a new analysis which reveals 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.

According to Bazaarvoice’s latest Shopper Experience Index, a third (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.

The technology’s growing impact on purchasing decisions has also been documented by Salesforce data, which recently highlighted with AI-driven sales reached $229bn globally between November and December 2024 – up from $199bn during the same period the previous year.

AI-infused tools like product recommendations, targeted offers and products, along with social proofing present a massive opportunity to amplify these personalised, relevant, contextual experiences.

They save time and deliver tailored information to shoppers that brands might not otherwise have the resources or ability to provide.

Bazaarvoice chief marketing officer Zarina Stanford said: “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. The key is timing and placing these personalised offers – contextualised will be key.”

Standford reckons that 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.

She concluded: “In today’s competitive marketplace, a strong, personalised and relevant loyalty programme 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.”