Discounts may win a sale, but they won’t build loyalty. Brendan Straw from Shopfully reveals what actually keeps customers coming back for more.
Today’s shoppers aren’t just chasing the lowest price, they want experiences that feel curated, relevant, and make them feel genuinely valued. Whether scrolling online, opening a promotional email, or finding inspiration on social media, shoppers want every interaction to feel personally made for them.
With more than half (54%) of Australian shoppers already integrating technology into their shopping routines, and a growing interest in more advanced tools – according to Shopfully’s 2025 State of Shopping report – it’s clear that shoppers are becoming more informed and deliberate in how and where they shop. They expect brands to meet them at every touch point along the consumer journey.
This is where AI comes in. When used strategically, AI allows retailers to discreetly shape how Australians discover and connect with brands, transforming every touchpoint into an opportunity to build authentic, lasting relationships that keep customers coming back long after their first purchase.
From efficiency gains to strategic advantage
More retailers are seeing the value of AI and increasingly investing in it, yet AI-adoption in retail has mostly focused on streamlining executional tasks, such as chatbots, product recommendations or automated emails. While these tools are valuable and improve efficiency, they only scratch the surface of what’s possible.
About a third of all Australians are now using AI-driven tools to help them make shopping decisions, from personalised recommendations to price comparisons and tailored promotions. This shift means retailers are sitting on a goldmine of consumer insights that go far beyond traditional transactional data. Every interaction, whether online searches, in-store visits, or browsing through digital catalogues provides powerful signals about what customers value, how they move between channels, and what motivates them to purchase.
Using AI to Understand the Individual Behind the Purchase
Aussies love a good bargain, but when every brand is running the same playbook, there’s no lasting competitive edge. While price is important, today’s shoppers are also looking for experiences, ones that feel personal, timely and relevant. They want to feel understood, not targeted.
This is where AI creates real value. When applied strategically, AI helps retailers understand their customers at an individual level. It enables brands to deliver curated content, personalised offers and timely messages based on actual behaviours, not assumptions.
Whether a customer is researching products online, planning their weekly shop, or walking past a physical store, AI allows retailers to anticipate intent and act on it. It connects fragmented touchpoints into a seamless, customer-centric experience.
Rather than interrupting, AI-powered personalisation supports the shopper journey. It reduces friction and drives relevance. But most importantly, it demonstrates that the brand is paying attention. Nailing AI will be key for retailers to re-enhance loyalty without overburdening shoppers.
AI-Powered Omnichannel Experience
With 83% of Australians researching online before making a purchase in store, this highlights the critical importance of retailers to connect digital discovery seamlessly with physical action.
Imagine a shopper researching running shoes online in the morning. AI can not only detect interest but matches it to the shopper’s location. Later in the day, as the shopper passes a nearby store, they receive a personalised notification with an offer on the exact shoes and directions to the nearest outlet with stock availability. What began as digital curiosity instantly turns into an in-store visit.
By understanding what consumers want and delivering messages that resonate at the moment of highest intent, retailers show customers that the brand truly understands who they are, where they are and what they want. That extra attention to detail, powered by AI, provides retailers an edge that keeps consumers coming back.
Future Planning with AI
Convenience is now a key focus in retail. With AI, retailers can gather valuable insights to anticipate and perfectly tailor to customer needs, making shopping easier and more enjoyable. It’s no longer just about making a sale; it’s about simplifying the entire shopper journey.
Click & Collect is a prime example of how convenience intersects with opportunity. Highlighted in the 2024 ‘State of Shopping’ survey, where 70% of Australians reported using the service, showcases the strength of hybrid shopping journeys that blend digital and physical channels. And shoppers aren’t just using it for efficiency, as 78% report they often add extra items when collecting their orders in-store. This creates a powerful moment for retailers to engage, upsell, and delight.
By analysing patterns and contextual signals, AI can forecast what shoppers may want next, send helpful reminders for forgotten essentials, or even promote limited-time in-store deals. The result is bigger baskets, stronger engagement, and a shopping experience that feels not only convenient but curated to each individual.
Loyalty Programs in Transition
Traditional loyalty models still rely on points, discounts, and transactional rewards. While these programs hold some value, today’s consumers expect more. Dynamic loyalty programs powered by AI can move the customer relationship beyond points and promotions.
With AI, retailers can build loyalty programs that evolve in real-time, adapted to individual preferences, purchase cycles, and intent signals. Imagine a program that offers sustainable product suggestions to shoppers who prioritise ethics, or that recognises when a customer is shopping for a family event and tailors’ promotions accordingly.
The future of loyalty will be predictive, experiential, and value-driven. By balancing simplicity with smart personalisation, retailers can design loyalty programs that go beyond points collection and instead deepen engagement at every step of the journey.
Be Smarter with AI
Today’s shoppers are empowered, digitally savvy and more discerning than ever. Competing on price alone is a race to the bottom. Discounts may secure a quick transaction, but they won’t deliver repeat visits or long-term advocacy.
Personalisation does and AI makes that possible. Strategically deploying AI-driven tactics to scale personalisation without losing the human touch is a powerful competitive edge. It gives retailers the tools to anticipate, connect, and delight customers in ways that feel authentically tailored to their every need. This way brands build stronger emotional bonds and dynamically adapt to the ever-changing customer preferences with real-time insights.
By moving beyond price-cutting and making AI a strategic investment in fostering consumer loyalty, retailers can future-proof their relationships, drive sustainable growth and keep customers coming back time and again in an increasingly competitive landscape.
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