A Retail Times’ sponsored post
Today’s consumer is looking beyond the transactional when it comes to retail; they crave offers and recommendations that align with their preferences, needs, and behaviours. Research[1] from American Express underscores this shift: three-quarters (74%) of UK shoppers now expect personalised offers tailored to their individual shopping habits.
For retailers, responding to these demands is crucial. Personalisation has evolved from a ‘nice-to-have’ feature, to a core component of their business strategy. By delivering personalised offers and product recommendations, retailers can not only attract new customers but also enhance loyalty among existing ones, helping them secure a competitive advantage.
Attracting new shoppers: personalisation as a customer magnet
Capturing new customers’ attention is a key growth driver, and personalisation is a powerful tool to incentivise first time purchases. In fact, 85% of consumers report that receiving personalised offers would compel them to buy from a new retailer. Retailers that make their first customer interaction feel relevant, targeted and engaging will get the relationship off to the best possible start.
While offers are undoubtedly effective for encouraging first-time purchases, how can they drive repeat business?
Keeping customers coming back
An overwhelming 94% of retail decision-makers identified customer retention as a key business priority over the next 12 months. They recognise that personalisation is crucial, with 94% also stating they want customers to feel like they really ‘know’ them. And, this focus aligns closely with what consumers want: over four in five (82%) said they’d feel ‘seen’ as a customer if a retailer gave them a personalised offer.
Scaling with confidence
Despite recognition of the power of personalisation, many retailers we surveyed admit they face significant challenges in scaling personalised offers. Over four fifths (85%) acknowledged that delivering personalisation at scale remains difficult, expressing concerns over perceived costs and complexity. They told us traditional methods, like store-wide sales or generic discount codes, often fall short in delivering the tailored experiences today’s consumers expect. In fact, almost two-thirds (63%) of consumers say they often discard untargeted offers like promotional codes or store-wide discounts.
A card-linked programme like Amex Offers, which connects directly to the customer’s payment method, makes it easier for retailers to deliver targeted offers that are both relevant and simple to redeem. By addressing these consumer expectations for more personalised experiences, retailers can overcome the personalisation hurdle and drive stronger engagement at scale.
How Amex Offers help retailers win
Card-linked offers provide an impactful way to deliver personalisation at scale. Unlike generic promotions, these offers are directly linked to the customer’s payment method, making them more relevant and convenient to use. In fact, over four fifths (81%) of consumers say they’re more likely to redeem personalised card-linked offers compared to generic promotions, which often feel less relevant.
A recent Amex Offers campaign with a prominent clothing and accessories retailer demonstrated the impact of this approach: during the campaign, the retailer saw average transaction sizes more than double. Beyond this initial engagement, newly acquired customers returned to make an average of four transactions in the three months following the campaign, proving that card-linked offers can drive lasting loyalty and repeat business.
Amex Offers campaigns also provide merchants with flexibility to design programmes tailored to their business objectives – whether that’s attracting new customers, increasing spend, or re-engaging lapsed customers. Merchants benefit from real-time performance tracking and a cost-effective structure, as they only pay for redeemed offers, ensuring transparency and low risk.
For retailers looking to unlock growth and stronger customer connections, personalisation is key to future success. By embracing scalable solutions like Amex Offers, retailers can not only attract new shoppers but also encourage repeat purchases, foster loyalty, and ultimately drive business growth.
[1] The research consisted of two studies conducted in partnership with a third-party vendor on behalf of American Express, surveying 1,000 UK consumers and 750 retail decision makers between 10-20 May 2024.
Discover more about the business benefits of Amex Offers.
