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AI Reshaping Retailers’ Marketing Strategies

Artificial intelligence making traditional techniques obsolete.

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Brands have long relied on a “louder is better” philosophy: The more touch points and messages, the better. But that’s no longe the case, says a new report from cross-channel marketing platform Cordial. Now, marketers at retailers are struggling to break through the noise, fighting both consumer fatigue and declining engagement.

“We’re in a fundamentally different marketing landscape than we were just months ago,” said Rob Garf, Head of Strategy and Insights at Cordial, whose clients include Levi Strauss & Co., L.L.Bean, Pacsun and Boot Barn. “Consumers are more connected and shopping is more fragmented. AI has upended the traditional marketing ‘funnel’ as consumers increasingly embrace personal agents to discover and purchase products.”

Brands must make the most of that shift by optimizing their data, AI and marketing channels for a seamless and personalized experience wherever a consumer chooses to engage, Garf says.

The Cordial report points to a major disconnect between shoppers and retailers, when it comes to the use of AI. While one-third of consumers now regularly use AI platforms like ChatGPT, Perplexity and Claude while shopping, nearly half of all brands (47%) maintain minimal or no AI agent presence, and only 7% have developed comprehensive AI optimization strategies.

How best to cross that chasm? “In the battle for attention, the brands that synthesize their technology ‘stacks’ to yield harmonious, AI-driven experiences will do more than improve their relevance rates. They’ll separate themselves from the noise makers,” Cordial reports.

Click here for more from the Cordial report.

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