For companies, retailers, and even payment processors, the integration of artificial intelligence (AI) is proving to be a delightful holiday surprise, revolutionizing their customer interactions.
AI presents a unique opportunity to craft immersive experiences, especially during the holiday season, when consumers are cautious about their expenditures and seek authentic value. These interactions not only foster brand loyalty but also capture consumers’ interest.
The recent “New Reality Check: The Paycheck-to-Paycheck Report — The Savings Deep Dive Edition” by PYMNTS Intelligence and LendingClub has amplified these efforts.
As per the report, users, particularly those concerned about inflation, are growing increasingly pessimistic. They are preparing for potential price pressures and exercising more prudence in their investment decisions.
Furthermore, the report indicates that consumers have utilized discounts as a coping mechanism for the challenges posed by inflation. However, this safety net is gradually diminishing.
In response, companies are continuously exploring innovative methods to incentivize customers to spend within their means.
AI-Powered Narrative Creation at Kohl’s
Kohl’s innovative AI-driven Storybook initiative exemplifies this approach.
Customers can input details about themselves or the gift recipient using the Storybook platform, including their hobbies and preferences. Subsequently, the AI technology tailors a unique story based on the individual’s persona, adding an extra layer of personalization to their holiday gifts.
Through collaborations with influencers and social media engagements, Kohl’s is nurturing consumer connections and facilitating the exploration of holiday favorites to enhance customer touchpoints and enrich the holiday shopping experience.
For instance, Kohl’s is launching a series of cross-platform augmented reality (AR) lenses under the theme “Holiday Kohl or Coal,” available on Snapchat, TikTok, and Meta. Customers can select between Kohl’s gifts and “Coal” items using these lenses.
Additionally, Kohl’s is reintroducing influencer-curated shops on its website to streamline holiday shopping and foster meaningful dialogues. Bloggers now have dedicated pages on the platform featuring their preferred Kohl’s holiday gifts. Each page is personalized to the influencer and showcases social content featuring Kohl’s products, alongside a customizable selection that the creator can update in real-time with their chosen items.
To assist customers in discovering the best products, Kohl’s is hosting eight live streams throughout November and December. These streams, accessible on Instagram, Facebook, and TikTok, showcase holiday picks curated by Sephora beauty experts, Kohl’s influencers, and associates.
AI Implementation in Malls
Simon Property Group has introduced what it terms as the next evolution of personalized shopping, employing a team of individualized shoppers supported by Simon’s “HolidAI” gift-finding tool to aid customers in promptly discovering the perfect gifts this holiday season.
A team of Simon’s “helper elves” will be on hand to assist customers, leveraging ChatGPT 4.0-powered systems connected to a range of retailer-specific product recommendations. Their debut is scheduled for Black Friday, November 24, at Simon properties in New York and Los Angeles.
Lee Sterling, Simon’s Chief Marketing Officer, expressed excitement about the holiday season shopping experience, stating, “Thanks to the latest advancements in AI, holiday shoppers will relish the satisfaction of pinpointing the ideal product while engaging with our lively, knowledgeable companion elves.”
AI Enhances Buy Now, Pay Later Services
Lastly, buy now, pay later (BNPL) service providers like Klarna are striving to incorporate and provide customers with AI-driven shopping feeds to entice them to complete their purchases. This initiative aligns with the finding that over 36% of U.S. consumers are open to leveraging AI for an enriched holiday shopping experience.
Although Klarna introduced its AI-powered shopping feature in April, the company notes a significant uptick in customer adoption for their shopping needs. With consumers evaluating their outstanding debts and associated interest charges, they may be enticed to transition away from credit accounts, as per PYMNTS.
