Holiday shopping season raises consumer expectations, and personalization and engagement find AI an important ally
The Brazilian consumer is increasingly aware and demanding. Even with extra income, such as 13th salary and bonuses, end-of-year spending has been carried out with caution. People are looking for what they need and want to be impacted by offers targeted to their profiles, and retailers, more than ever, need to understand the current consumer culture and what tools they have at their disposal. Observing recent data from three market surveys, it is possible to point out who will be retail's greatest allies in the coming years, but above all for the task of dealing with the end-of-year shopping season, marked by Black Friday, Cyber Monday and Christmas.
The Growth Report 2023, a study carried out annually by Twilio, showed that 88% of companies are already using some form of AI in their marketing efforts, which always intensify towards the end of the year. Additionally, 54% of companies expect to spend even more on AI-based campaigns in the next year. The truth is that this is a very well-founded investment, given that AI has enormous personalization and engagement potential for any campaign, but it is only as good as the data on which it is based.
Furthermore, according to a study commissioned by Meta on the “Shopping Season”, carried out by YouGov, 72% of Brazilian consumers say they have already purchased from a personalized ad and 78% say they expect to receive personalized offers this shopping season 2023 to from your previous purchase histories. Even with caution due to the economic situation, 3 out of 4 consumers are motivated to participate in end-of-year shopping due to prices and discounts. Additionally, Meta's study also shows that 70% of these consumers consider that planning ahead financially for the holiday season is more important than ever. Half of these consumers believe that this is the best time to shop.
As a strategy to prepare for this scenario, companies are increasingly investing in assertive communication, based on cutting-edge technology and reliable data. According to the Growth Report, 53% of companies say some of their most successful campaigns over the past year have included AI. “The quality of the data used is fundamental to guide the marketing campaigns that are being developed. Furthermore, you need to be where the customer most wants to communicate. In Brazil, one of the main channels to do this is via WhatsApp, which can greatly benefit from connections between chatbots, AI and primary data. The practicality of this tool for carrying out personalized communication that closes more deals satisfies and engages the customer more”, says Rodrigo Marinho, Regional Sales VP LATAM at Twilio.
The study presented by Meta also showed that 42% of consumers say that exchanging messages with a company is the most convenient method for their shopping journey and 2 in 5 of them say they have discovered new brands and products through WhatsApp. “This conclusion shows a purchasing culture focused on messages, but first you need to listen to the customer to know if you are really doing what you think you are doing as a marketing strategist. Twilio’s 2023 Customer Engagement Report showed that only 15% of consumers agree that companies are doing an excellent job of personalization, even though 46% of companies think they are doing so,” says Marinho.
Analyzing the data presented in the three studies, it is possible to conclude that a retail strategy for this year-end needs to be aware of three major points:
- Customers buy more at the end of the year and wait for this time to do so, which is why it is necessary to be prepared, use the season to intensify and create good relationships;
- There is a great desire for true personalization, based on real data about the customer, so investing in collecting and maintaining primary data is essential;
- There is a demand for communication and marketing strategies that meet the specific desires of consumers, such as the use of appropriate communication channels, such as WhatsApp, and AI can be a powerful ally in maintaining and developing this strategy.
It is worth remembering that each and every technological tool used is only as good as the data that feeds it, and therefore it is only possible to truly personalize when you remain focused on the customer. “With these insights in mind, retailers across the country can start to develop their engagement strategies more assertively, talk more with their customers and target consumers and start 2024 with investments in tools suited to the new consumer cultures that are being formed ”, concludes Marinho.
