According to the “Building Lasting Consumer Relationships in Retail" report by WBR Digital and Persado, the majority of respondents (47%) are looking to spend up to $50 million on artificial intelligence (AI), while a quarter are budgeting as much as $100 million. For marketing leaders surveyed, effective customer engagement is expected to be the primary benefit of implementing AI, where “engagement” is considered foremost as a driver of revenue (37%) and to a much lesser extent, brand awareness (13%).
Retail marketers look to improve engagement by providing more relevant experiences but continue to struggle with personalization. On a scale of 0 to 4, with 0 as least effective and 4 as most effective, marketers find that they could do a better job with personalization techniques: tailoring product recommendations (2.85); segmentation (2.53); offer personalization (2.49); and personalizing content (2.13).
Even with an onslaught of tech innovation giving retailer marketers deeper insight into what motivates audiences on a personal and emotional level, their ability to activate this insight is stunted. For example, only 22% of respondents believe they are skilled at applying emotion to content. Furthermore, retailers’ personalization techniques are typically limited to the basics of demographic and location data.