AI is everywhere. If you’re like me, you’re having conversations about AI in every meeting. Reading about AI in LinkedIn posts. And hearing AI included in every vendor pitch.
But here is the stark reality: just because AI is everywhere does not mean every marketer is using it effectively. That disconnect is where the real opportunity exists for retail marketing leaders today.
Throughout my career, I’ve introduced value-based multi-channel, multi-touch marketing programs in global organizations. Here at SAP Emarsys, I enjoy helping our customers implement omnichannel marketing strategies and technologies that transform the business. So, while AI seems “new” for many marketers, it’s not for SAP Emarsys and our customers. We’ve been using predictive AI in our platform for more than a decade.
If you’re responsible for incorporating AI into your retail marketing strategy across in-store and online channels, let’s talk about how you can deliver real results. Here are five eye-opening trends to master and bring out the best in your business.
#1: AI is uniting online and in-store experiences
Shoppers often prefer online or in-store shopping based on proximity or convenience. But what they really care about is having a consistent, personalized experience when shopping with your brand.
Our latest AI in Retail global report highlights the convergence between online and in-person shopping. 55% of retail purchases have been made in a physical store, and 54% have been made through an online marketplace.
The takeaway: In many organizations, online and offline data rarely talk to each other, which is a big miss! Retail marketers must unify their data across physical stores, digital channels, and back-end systems. That’s what makes true omnichannel personalization possible. Through connected data, your customers can experience personalized product recommendations online or redeem a loyalty reward in-store.
#2: AI is working, but it's not a shortcut for strategy
Based on our research, 71% of marketers agree that AI allows their team to build and launch new marketing campaigns more quickly. Most report saving an average of 2.3 hours per campaign. But AI won’t solve all of your marketing problems, especially if your data is fragmented or your customer journeys are clunky.
The takeaway: AI won’t replace strategy. Use AI to amplify what’s working and free up your team to fix gaps. A great place to start is building a foundation that unifies customer data across loyalty, in-store, e-commerce, mobile, etc. Partner with your internal stakeholders to get your data in check. Then, you can use AI to deliver personalized content and experiences that your customers crave, just like Now Optics did with their omnichannel engagement strategy.
#3: Consumer expectations for personalization have evolved beyond %FirstName%
In the early days of digital marketing, adding someone’s basic demographic information into an email, form, landing page, or display ad felt revolutionary. I remember how we’d see jumps in engagement just by adding someone’s first name to an email. However, today’s consumers are savvier. While 79% of marketers use AI to personalize content and campaigns, only 39% of marketers are using AI to create new experiences for customers.
The takeaway: Only 29% of shoppers believe brands personalize content to their needs. Marketers need to go beyond the basics of personalization and explore more innovative experiences, such as helping customers generate gift ideas, personalizing messages on cards, or comparing products.
#4: More marketers are investing in AI (and seeing the impact)
This year, 64% of marketers plan to invest more in AI than they did in previous years. Key investment areas include using AI to:
- Automate more activities and campaigns
- Deliver new customer experiences
- Increase customer engagement across channels
- Engage consumers in new markets, regions, or sectors
- Reduce the complexity of the approach, such as streamlining tools and processes
- Improve customer loyalty and retention
- Launch new channels for customer engagement
The takeaway: Our most successful and innovative customers experiment constantly. Start small. Experiment with AI in one campaign, channel, or moment of personalization that makes your customer feel seen. AI-powered segmentation and product recommendations can help deliver the right message at the right time and accelerate purchase decisions.
#5: Trust in data privacy remains delicate
Data is the foundation of any powerful customer engagement strategy. Yet only 16% of consumers report having a high level of trust in retailers to protect their personal information. Further, 63% of consumers are not confident in AI’s data privacy, up from 44% in 2024.
The takeaway: Transparency builds trust. Brands that clearly communicate how they use customer data will earn loyalty, not lose it. Taking a data-driven approach helps sustain growth and adaptability in an evolving market, just like Krispy Kreme did to sweeten the customer experience.
The Future of AI in the Engagement Era
92% of marketers are already using AI. Those who are using AI are reaping more benefits faster. Most likely, you’re using AI already in your day-to-day tasks, too. The real question is: Are you missing out on areas where AI could be applied?
This expansion of AI will only increase as marketers partner with commerce, sales, and service teams to seek innovative ways to win lasting customer loyalty. Competition is fierce, and consumers have power in this Engagement Era. The brands winning with AI put customers first and consider how to enrich their lives and experiences. That’s the heart of the SAP promise: put the customer experience at the center of every business decision. That’s the power of connected data, and that’s the future of retail.
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About the author
Sara has more than 15 years of experience in senior global marketing roles at high-growth martech organizations including Clicktale, IBM Tealeaf, Acquia, & Unica. Her passion is for building marketing teams that act as a trusted partner to the sales organization. Sara excels in strategy and communications which deliver measurable pipeline and revenue. Sara holds a BA from the University of California in Los Angeles.
