Brits crave personalisation but believe AI is too creepy

Brand owners appear to be stuck between a rock and a hard place, with the vast majority of UK shoppers believing most marketing is irrelevant and impersonal yet they find AI creepy and intrusive when it knows too much about them.

That is the stark conclusion of two separate consumer studies into modern day marketing techniques.

The first, by global cloud communications platform Infobip and economic research consultancy Retail Economics, reveals that nearly two-thirds (61%) of UK consumers consider communications from retailers and brands meaningless, while more than half (56%) say that communications lack personalisation.

The study of 2,000 Brits makes it clear that retailers must move beyond simple demographic segmentation, such as age and income, and look deeper to engage effectively, arguing that personalisation and a unified, omnichannel approach are now essential for retailers aiming to increase customer acquisition, satisfaction and retention.

The study reveals four distinct UK shopper personas, outlining their communication preferences and pain points:

Exacting shoppers (12% of consumers): Highly engaged and loyal, but the most demanding. They expect service excellence and prefer online shopping for convenience, and value digital propositions and personalised recommendations.

Busy shoppers (29% of consumers): Always on the go, these shoppers switch between retailers based on their immediate needs. While more tolerant of customer experience (CX) shortcomings, they prioritise digital channels and seek hassle-free experiences.

Social shoppers (44% of consumers): Social shoppers balance online and in-store shopping. They value personal connections, are also most likely to be concerned with data protection and ethical practices and appreciate secure, seamless, omnichannel experiences.

Laid-back shoppers (15% of consumers): Favouring in-store experiences, these shoppers show loyalty with minimal digital engagement. They’re forgiving of mistakes but appreciate good communication.

Infobip UK&I retail lead Kim Johal commented: “This study challenges common assumptions about shopper traits based on income and age, demonstrating the need to dig deeper into consumer preferences to engage effectively. We increasingly see consumers move seamlessly between channels, whether in-store, on ecommerce platforms, via messaging services or social media.

“The landscape is complex and the brands excelling in customer satisfaction and retention are those embracing cross-platform availability, delivering consistent experiences at every touchpoint.”

Meanwhile, a survey conducted by Scayle (part of Zalando) has exposed the dangers of AI implementation, with only 16% of shoppers saying they feel comfortable with how retailers are currently using technology.

A significant number are uncomfortable with specific applications, including AI-generated product images and models (44% of UK consumers); AI-generated video content (41%), and customer service chatbots (41%).

Scayle director of solution consulting Rico Adler reckons that UK shoppers are becoming increasingly cautious about AI’s data privacy and ethics because of public debate.

While shoppers see a number of potential benefits of AI, including the ability to discover products faster (ranked first by 21% of UK shoppers), better customer service (ranked first by 19% of UK shoppers) and more personalised offers, many feel that the use of technology is “creepy” or intrusive when it knows too much about them, while they are also concerned about potential bias in AI algorithms and their impact on data accuracy and fairness.

In essence, while retailers are enthusiastic about the potential of AI, consumers are more hesitant.

Scayle maintains that successful AI implementation will hinge on addressing consumer concerns regarding data privacy and transparency, and focusing on creating positive, user-friendly experiences.