AI Shopping Assistants Aren’t Catching on … Yet. Can Brands Capitalize on the Desire for Personalization?
Consumers have an overwhelming amount of shopping options at their fingertips, from brand content, Google search recommendations, social media, and now, artificial intelligence (AI) assistants. Just last month, OpenAI introduced a new shopping assistant that offers tailored product recommendations, and Perplexity just announced a partnership with PayPal to enable direct purchases through its own AI chat. However, as AI shopping features grab headlines, are consumers buying into them?
Despite what seems like the next major shift in consumer behavior, new findings reveal that social media and GenAI shopping tools aren’t catching on with mainstream consumers as expected … yet. A recent study from KPMG found that over half of those surveyed have not used these shopping tools, nor do they plan to. The big hesitation? Many struggle with the idea of feeding their personal data directly to generative AI.
Shoppers are clearly in the market for better, more personalized recommendations, but want them on their terms. This is a time for marketers to tap into the trust behind their brand names and leverage owned channels with highly personalized content to meet consumers where they’re at today.
Personalization That’s Helpful, Not Intrusive
Brands should use this moment to double-down on owned channels to solidify trust and credibility. Once a customer interaction begins, it’s critical to deliver an engaging, authentic experience to keep them. I’m personally more inclined to engage with platforms that offer tailored website experiences, customized email campaigns, or loyalty programs. When there’s an obvious effort to enhance my experience or demonstrate they value me as a customer, especially by a brand that’s gained my trust, I’m more likely to return.
Take, for example, Pets Deli. The pet food supplier analyzed its customers' purchasing behavior and segmented its audience based on their loyalty level: first-time shoppers, return visitors, and repeat customers. The brand then integrated AI-native personalization into its content management system to provide hyperpersonalized material that resonated with each group, depending on their familiarity with the company. This approach not only offers more control over content it also allows for more transparency in data collection. Not to mention, Pets Deli was able to increase conversion rates by more than 50 percent. That’s personalization that’s helpful, rather than intrusive.
Consistency is Key
Strengthening owned channels also allows brands to zero in on message consistency, which is the key to maintaining share of voice in the age of AI. This is especially true given how generative engine optimization (GEO) is challenging the classic search engine optimization (SEO) model. It becomes harder than ever to capture the attention of consumers and drive them directly to a website, so it’s imperative that all brand content is consistent to drive the best results, whether through traditional or AI searches.
To achieve this level of uniformity, brands must ensure their content house is in order. Discrepancies in the content you show your audiences can limit or, worse, negatively impact what a consumer understands about your brand. Ensuring messaging is aligned across channels not only allows for more authentic, intentional connections but also ensures that AI search results will surface accurate and reliable recommendations or product information.
Preparing for AI Shopping in the Future
It may feel counterintuitive to prioritize owned channels right now, but it positions brands and marketers for long-term success. Just because consumers are wary of GenAI and social shopping today, doesn't mean they won’t be tomorrow.
Now is the time to build a foundation of consumer trust. Understanding their current sentiments and channel preferences is critical to reaching them authentically and meaningfully. As technology advances and AI shopping familiarity becomes second nature, those that can deliver consistent and engaging content will be well-equipped to keep up with the evolving landscape.
Caitlin McCulloch is the vice president of performance and growth marketing at Contentful, a composable content platform.
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Caitlin McCulloch is the vice president of performance and growth marketing at Contentful. She has extensive experience driving demand generation and strategy across the SaaS space, including at Braze, where she led demand generation and played a key role in their successful IPO, Bazaarvoice, and Social Media Today. Caitlin has dedicated her career to helping brands connect more authentically with their customers through technology. She is also passionate about fostering growth and empowerment across the teams that she leads. Caitlin holds a BS in Business Management from Bucknell University and lives in New Jersey with her family.