Key Takeaways:
Understand how customers’ search tendencies are evolving with AI.
Know where to start with using AI to level up your retail brand’s personalization.
Artificial intelligence is transforming how retail businesses connect with customers. But while tools are evolving rapidly, one truth remains the same: it’s not about marketing harder, but smarter.
If you’re a store owner trying to figure out where to start (or how to keep up), this blog distills the latest AI insights into four clear, retail-friendly principles. Whether you run a boutique, kitchen supply store, or local jewelry shop, these takeaways will help you personalize more effectively and intentionally.
AI Is Evolving (and So Are Your Customers)
From rule-based systems to generative AI tools and now agentic AI, the landscape is shifting fast. AI is continuously adapting. And so are your customers. Today, more shoppers are expecting eCommerce platforms to respond to natural, conversational questions, acting more like search companions than static catalogs. According to recent data from Bloomreach, 54% of consumers claim their search habits have become more conversational over the past 12 months, while 93% of respondents believe it’s important for eCommerce site searches to understand conversational queries.
There’s also greater trust in chatbots. Per Statista, 82% of consumers would prefer to use a chatbot instead of waiting for a customer representative to answer their phone call.
That means it’s no longer enough to just show your products. Customers want curated suggestions and meaningful interactions, both online and in-store. If your digital channels aren’t offering some level of personalization, your audience may move on to someone who does.
“If you’re an independent store or smaller brand, keep a notebook by your register. Keep track of what customers are telling you. Then put that info into your POS or CRM later on. It’s a great way to start to gather and manage that information, so you start to become more personalized.
– Jennifer Shaheen
President and Founder, Technology Therapy® Group
Personalization Starts with the Right Data
Before AI can help you build better experiences, you need to know your customer. Not just their name or location, but their preferences, needs, and stage in the buying journey.
If you’re an independent store or smaller brand, keep a notebook by your register. Note what customers tell you, like favorite styles or product questions, then add that info to your system later. It’s an easy, powerful way to start building better customer profiles.
Even a few thoughtful data points can help you send more relevant emails, suggest better products, or personalize your in-store experience. For example, tracking whether someone prefers white or yellow gold might seem small. But it can make your next product recommendation feel tailored and intentional.
“The post-purchase experience is a major reason why people keep coming back to certain businesses. After a sale, give that customer information about what they bought or how to use it. And complement them on their purchase.”
– Jennifer Shaheen
President and Founder, Technology Therapy® Group
Personalization Is Built on Trust and Relevance
Of the five personalization “promises” in today’s AI landscape (empower me, know me, reach me, show me, delight me), “know me” sits at the core. When customers feel understood, they’re more likely to engage (and return).
Start by asking yourself: “What do I already know about my audience?” “Where can I begin capturing more?”
Personalization doesn’t mean sending every shopper a different email. It means using what you know to meet them where they are – without overwhelming them or overstepping. A customer who just purchased a cast iron skillet, for instance, might appreciate a follow-up email with seasoning tips and a recipe—not another push to buy.
And remember: not every interaction needs the same level of detail. The post-purchase experience is a major reason why people keep coming back. Simple gestures like a thank-you text or product care tips go a long way in deepening relationships.
Start with One Segment and One Step
Personalization doesn’t have to be all or nothing. In fact, one of the most effective ways to use AI in retail is to start small. Focus on one customer segment, like loyal repeat buyers or recent browsers. Then test a few well-timed, relevant touchpoints.
Before diving into new tools, review your existing channels. Are your emails general or tailored? Are you using your data to guide messaging? Next, outline your approach using these four questions:
- Which customers should I target first?
- Where are they in the customer journey?
- Which channel should I use to reach them?
- How specific should the messaging be?
It’s also important to protect your customers’ data. Before you use an AI tool for your business, review its privacy policy so you know what it’s doing with the info you put in. And make sure to anonymize the data you’re feeding it.
Pursuing Personalization with Purpose
AI gives you the power to deliver smarter, more relevant experiences. But only if you start with strategy. It’s not about using every tool. It’s about choosing the right ones, grounded in what you know about your customers.
Start simple. Keep track of what shoppers are telling you. Use tools that help you respond with care. And above all, remember that AI enhances the human touch—it doesn’t replace it.
Ready to Put This into Action?
Discover how to use AI to create more personalized, effective marketing for your store. Find out more about our AI program for jewelry retailers.
