Retailers have been getting creative in the last year to convert sales in a tough economy, with deal days galore, innovative social media integration and imaginative advertising campaigns. Technology – specifically AI – could be the ticket to success through year end and the gift that keeps on giving this holiday season. Read on for the list we’ll be checking twice, including data from our recent consumer sentiment surveys of 1,000 U.S.-based adult consumers on what they are looking for from retailers this upcoming season.

Personalization Better than Santa Claus

Retailers must put more effort into providing unique, personalized experiences for their shoppers. This is especially true around big holidays when consumers are looking to deck the halls, host festive holiday soirees, and struggle with finding the perfect gift for their loved ones. Luckily, this won’t surprise retailers, with 70% of retailers saying personalization is either an integral or large part of their ecommerce strategies in 2024.

Even given the hesitation to share the needed data for personalized shopping experiences – most consumers (59%) think that retailers can do more to create personalized experiences for shoppers. According to the same survey, consumers specifically would be willing to share the following information with a retail website for a more personalized experience:

• Their shopping preferences based on what they pick and choose on that website (49%)
• Purchase history on that website (33%)
• Browsing history on that website (31%)
• Direct feedback and reviews (22%)

Only a small number of consumers (23%) aren’t willing to share any information with retailers for a more personalized experience – indicating a big buy-in for tailored shopping experiences that could make any consumer jolly come December. Beyond conversions and revenue, investing in and delivering on personalized online experiences shows respect and care to the customer, in turn driving customer satisfaction, positive reviews, loyalty, jingle bells and more. To do so, retailers should be on top of keeping their user data up to date, implement AI and machine-learning-aided algorithms to show they truly understand their customer, integrate their CRM, CMS and e-commerce platforms, and make sure transparency is at the forefront.

Gift Recommendations Better Than Asking Your Mom

Consumers will look everywhere for the perfect gift idea, from influencer gift guides to TikTok shop to their favorite retail site’s gift page. Retailers could see the ultimate ROI by capitalizing on this need and leveraging AI to provide consumers with personalized gift recommendations. While overall, 70% of consumers say they would take advantage of this feature, that number jumps to 78% for Millennials and a whopping 82% for Gen Z. Additionally, 56% believe that retailers’ wider adoption of AI would make gift buying easier. These numbers are staggering and shouldn’t be ignored when retailers are planning their holiday strategy.

Recommendations can make or break an online shopping experience when consumers are drowning through endless choices and infinite scrolling. They can also help customers learn new things about new areas of shopping through offerings like trending product sections that can help a consumer find the perfect gift for their 10 year old nephew when they don’t have kids themselves and haven’t done a deep dive on dinosaurs or trucks. This solution could be invaluable for retailers looking for a big holiday sales push.

AI-Driven Online Experiences Better than Your Crowded Mall

No one wants to fight through the mall crowds these days when the perfect piece of holiday decor can be found on your phone on the comfort of your own couch (or scrolling in your bed at 1 a.m.). That being said, many are hoping for a better shopping experience to convert that scroll into a sale. Furthermore, according to our recent survey on AI-powered shopping, 73% of Millennials believe the wider adoption of AI by online retailers would create better shopping experiences.

From a consumer’s first impression visiting a site to the placed order, shipping, tracking and every interaction in between, there are opportunities to embed AI to enhance consumer’s shopping experience. For example, using AI to help generate more accurate and relevant search results on a retail site ultimately translates into a better user journey. The more relevant the outcome, the greater the likelihood of converting a user browsing online into a paying customer.

There are tremendous opportunities for retailers to tap into AI to personalize discounts, search results and recommendations for their loyal, targeted audience and capitalize on the holiday shopping season. By focusing on the consumer and prioritizing AI this holiday season to offer a user-friendly, secure and customer-centric shopping experience, retailers can maximize their success and make the most of this year’s festivities and cheer.