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CUSTOMER ENGAGEMENT MONTH: Building lasting relationships using AI and ML

Customer engagement strategies are more critical than ever for standing out in a crowded e-commerce market. Personalisation and loyalty programs are two pillars driving deeper connections with customers, fostering trust, and enhancing long-term retention. Delegates attending the eCommerce Forum are leveraging advanced and creative approaches to deliver bespoke experiences and build lasting relationships – here’s how…

Personalisation at Scale: Beyond Recommendations

Personalisation has evolved far beyond recommending products based on browsing history. In 2025, e-commerce businesses are using advanced technologies like artificial intelligence (AI) and machine learning (ML) to deliver highly targeted and context-aware experiences. These tools analyse vast datasets to anticipate customer preferences and behaviours, enabling businesses to create tailored interactions at every touchpoint.

For instance, dynamic email campaigns now adapt in real-time, offering discounts or product suggestions based on a user’s recent activity. Websites use AI-driven design elements to adjust layout, messaging, and navigation based on individual customer profiles. This level of granularity makes shopping experiences more relevant, increasing conversion rates and reducing cart abandonment.

However, successful personalisation depends on trust. Transparent data collection practices and compliance with regulations like GDPR are essential for maintaining customer confidence. Highlighting data privacy policies and offering customers control over their data builds the trust needed to make personalisation effective.

Loyalty Programs for Competitive Advantage

In a competitive e-commerce landscape, loyalty programs remain a powerful tool for customer retention. The truly innovative programs go beyond points and discounts, focusing on creating unique and rewarding experiences.

Tiered loyalty systems, for example, incentivise repeat purchases by offering exclusive benefits such as early access to sales, free shipping, or VIP customer support. Brands are also embracing gamification, turning loyalty into an engaging activity. Customers can earn rewards by completing challenges, participating in community forums, or referring friends.

Subscription-based loyalty models are gaining traction, especially in sectors like beauty and fashion. These programs provide customers with curated product selections or monthly benefits in exchange for a recurring fee, ensuring consistent engagement while delivering predictable revenue for businesses.

The Synergy of Personalisation and Loyalty

Personalisation and loyalty strategies are most effective when integrated. Personalised communications within loyalty programs—such as recommending rewards based on past purchases—enhance the customer experience and deepen engagement. By combining these approaches, businesses can drive customer lifetime value and stand out in a competitive market.

As 2025 unfolds, the ability to personalise experiences at scale and create meaningful loyalty programs will define successful e-commerce strategies. By focusing on relevance, transparency, and creativity, brands can foster deeper connections with their customers, driving both engagement and long-term success. The future of customer engagement lies in balancing technology with trust and innovation.

Are you searching for Customer Engagement solutions for your organisation? The eCommerce Forum can help!

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