Singapore retailers are increasingly adopting artificial intelligence (AI) to enhance customer engagement and streamline operations, but concerns remain over the potential loss of a personal touch in shopping experiences. A recent survey conducted by Twilio, a prominent customer engagement platform, revealed that 93% of retailers in Singapore anticipate AI will become essential to their operations within the next five years. This survey, held during the 2024 National Retail Federation’s Retail’s Big Show Asia Pacific, underscores the growing recognition of AI’s transformative potential in the retail industry.
The survey further found that 70% of Singaporean retailers foresee a wide range of AI applications emerging in the coming years. These include personalizing customer interactions, optimizing inventory management, and refining supply chain processes. As a result, retailers are actively exploring AI to enhance customer experiences and improve overall operational efficiency, both online and offline.
Early adopters of AI are already witnessing positive outcomes. For instance, Trade Me, New Zealand’s largest online auction platform, has utilized AI-powered predictive models to accurately forecast buyer and seller behavior. This capability enabled Trade Me’s marketing team to launch targeted campaigns across multiple channels without needing additional data science resources. The result was a notable improvement in email and ad campaign performance, return on ad spend (ROAS), and overall operational efficiency. These early successes highlight AI’s value as a tool for achieving better business outcomes and gaining a competitive edge.
Despite the growing adoption of AI, Singaporean retailers remain cautious about its impact on personalized customer experiences. The Twilio survey noted that 71% of retailers are concerned that AI-powered chatbots and automated systems could lead to impersonal shopping experiences. As AI becomes more deeply integrated into retail operations, finding the right balance between scalability and personal engagement has become a pressing challenge.
Retailers understand the importance of delivering personalized experiences, especially as consumer expectations for tailored and hyper-personalized interactions rise. In response, nearly 45% of retailers are prioritizing customer data to maintain the personal touch in their engagements. Nicholas Kontopoulos, Vice President of Marketing for Asia Pacific & Japan at Twilio, emphasized the need for transparency in AI usage. He pointed out that as retailers employ AI, they must anchor their strategies in transparency, clearly communicate data policies, and inform customers about data collection practices. Providing mechanisms for customers to exercise their privacy rights is also crucial. Kontopoulos added that demonstrating how data is used to create tangible value and integrating it to unlock deeper insights are key to delivering genuinely personalized experiences.
As AI continues to shape the retail landscape, retailers must navigate the complexities of personalization and scalability. By responsibly leveraging customer data and maintaining a transparent approach, retailers can harness AI’s power to enhance customer engagement while preserving the personal touch that remains central to the shopping experience.
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