By Sumantra Bhattacharya
As consumer preferences change and the technology landscape evolves, retail brands face constant pressure to adapt their customer engagement strategies. The mainstream adoption of AI and the rise of unified commerce mark a significant transformation in how brands deliver customer experiences. According to Deloitte, 20% of top global retailers will use distributed AI systems by 2025, and 45% of marketing leaders plan to invest in GenAI in the next 12-24 months. For example, Walmart has deployed a conversational AI-based platform called Walmart Voice Order, which enables customers to order items through voice commands. This intelligent tool is revolutionising customer experience by identifying orders based on past purchases and also offering them the latest options in their favourite brand, ultimately delivering value.
Customers today demand a seamless experience across all channels; they want convenience, regardless of how they interact with a brand. Unified commerce is reshaping retail by connecting all touchpoints into a seamless ecosystem. As omnichannel customers — who spend 2-4 times more than in-store shoppers—become more valuable, brands are adopting unified commerce to enhance their strategies. This approach integrates inventory, pricing, and personalised promotions across all channels, enabling customers to move effortlessly between physical stores and digital platforms. The result? Enhanced customer engagement and strengthened loyalty.
Also, the surge in user-generated content, particularly post-Covid, offers a treasure trove of insights into audience preferences and brand perception. However, this data is often unstructured, making extracting meaningful insights through traditional methods difficult. Here’s where AI steps in, revolutionising the process. With its Natural Language Processing capabilities, AI swiftly and accurately analyses this data, identifying market trends playing a critical role in sentiment
analysis, allowing for a deeper understanding of brand perception.
Brands offering hyper-personalised experiences connect more deeply with the audience that spends more time on digital platforms — Gen Z and Alpha. Hyper-personalised product recommendations triggered by past behaviour and well-timed discount offers are just a few strategies brands use to effectively engage Gen Z and Alpha. As the next touchpoint, post-purchase AI-driven communication can maintain customer interest without causing fatigue and encourage repeat business.
To stay competitive, embracing AI and unified commerce is imperative, aligning with the ever-evolving consumer landscape. However, as these technologies are adopted, retailers must also prioritise data privacy and security, ensuring customer trust remains intact.
The author is director, data science, GALE India