Insights from global AI-first cloud communications platform Infobip and Retail Economics reveal that the “broadcast” era of retail engagement, characterised by one-way notifications, is being replaced by a conversational, AI-driven relationship layer.
When consumers are increasingly exposed to great digital experiences, retailers must up their game. With email open rates falling and fragmented attention, the cost of staying still has surpassed the cost of digital transformation.
Richard Lim, CEO of Retail Economics, comments: “A ‘one-size-fits-all’ approach to communication no longer works. Consumers demand choice, with preferences shifting based on age, income, and shopper intention. While Baby Boomers are twice as likely to want Email, Gen Z has moved toward dispersed channels, with 24% now preferring WhatsApp and SMS for deliveries and returns. WhatsApp, however, is a rare outlier, with consistency in engagement across every age group – a unique bridge across a diversifying digital landscape.”
Unlike traditional push channels where volume drives reach, WhatsApp engagement is driven by relevance. With open rates at 85–95% (vs. 32.7% for Email in e-commerce), the platform allows brands to guide customers from consideration to purchase within a single thread that maintains context over time.
Kim Johal, retail specialist at Infobip, comments: “The biggest objection we hear is that retailers can’t afford to answer conversational messages at scale. But we’re no longer building call centres; we’re building decision trees with an escape hatch. By using AI to handle routine queries like ‘where is my order?’, brands can provide a 24/7 sales-associate experience that proves its ROI in as little as 60 days.”
While consumer appetite is high, a readiness gap remains. Recent industry polling suggests 88% of retailers have begun exploring conversational AI, yet 0% report being “fully integrated” across the entire journey.The winners will be those that stop treating messaging as a “broadcast” button and start treating it as a value-driven relationship.
