The customer is firmly at the heart of UK retailer investment strategies as they plan for growth, new research suggests. Customer loyalty is a priority for retailers, says an American Express study. It found 87% of 500 respondents were investing in customer loyalty and sales growth. Nearly half (45%) said they would launch or improve a loyalty programme this year, while 64% said they believe customers now expect to be rewarded for shopping with them.
Retailers are harnessing artificial intelligence (AI) as they focus on the customer. Of those already using the technology, 46% are using it to improve the customer experience. Generative AI – used in tools such as conversational chatbots – was the primary focus of technology investment. More than two-fifths (43%) are using Gen AI to improve online product search. The same proportion is using it to answer customer questions and complaints. Uptake appears to be fast: last year only 14% said they were using technology to improve the online customer experience. This year, 32% of respondents said they had implemented Gen AI over the past 12 months alone.
High street investment
Stores also appear on the priority list for retail investment, with 38% planning to open new shops in the coming year. Beauty, electricals, fashion and grocery stores top the list of sectors planning to open stores. Most (88%) say experiential retail, from in-store events to using augmented reality to enable shoppers to visualise products in their own spaces, is key to driving footfall.
Payments are also moving up the agenda – 74% said customers now expect more from the checkout, with 60% agreeing that sales would rise if more payment options were available.
Dan Edelman, UK general manager, merchant services at American Express, said: “UK retail’s super-power has always been how the sector adapts to evolving customer demands. From investment in AI-powered personalisation, richer rewards programmes and a broader menu of payment options, merchants are prioritising ways to build lasting customer relationships.”
Half of the 500 senior retailers questioned in the study were from SMEs and half from businesses with at least 250 employees.
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