Most UK retailers focus on investments to drive customer loyalty
The Amex annual study of 500 senior executives from a range of UK retailers of all sizes, reveals 'notably upbeat ambitions' with 82% aiming to grow their business this year, up 10 percentage points on a year ago.
Respondents see ramping up loyalty as integral to driving that momentum, with 45% planning to either launch or enhance an existing loyalty programme this year.
This is in response to customer demand, with 64% of retailers believing customers now 'expect ' to be rewarded for shopping with them.
The study also found that retailers are increasingly using AI to forge stronger customer connections. Of the businesses already using the technology, 46% highlight improving customer experience as their main focus.
Leveraging Generative AI, such as conversational chatbots, topped the list for tech investment, while 43% said they are using Gen AI to enhance online product search while the same percentage are using it to help resolve customer queries or complaints.
By contrast, last year's study pointed to more cautious AI adoption, with just 14% applying the tech to improve the online customer experience.
The new report also highlighted that retailers are not just focused on digital engagement strategies. Some 38% say they are planning to open new stores in the coming year, with beauty and fashion among the top sectors planning bricks and mortar investment.
And their motivation? A massive 88% believe experiential retail is key to driving footfall , including in-store events and augmented reality 'that allow shoppers to visualise products in their own environment'.
The study revealed that payments are also moving higher on the strategic agenda, with 74% of retailers surveyed agreeing customers now have increased expectations when it comes to the checkout experience.
Some 60% believe they would generate higher sales if they offered more payment options, with 32% describing their current payment experience as 'outdated'.
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.'
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Most UK retailers focus on investments to drive customer loyalty
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