The retail industry is undergoing a significant transformation driven by Generation Z, born between 1997 and 2012. This shift has amplified the demand for clienteling—a smarter approach that allows retailers to meet Gen Z’s expectations and build lasting customer loyalty. These digitally native shoppers are rewriting the rules of customer engagement, and when powered by artificial intelligence (AI), clienteling becomes even more impactful.
A recent TCS Retail Survey highlights, “Consumers of all ages want new technologies, based on their preference, to enhance their shopping experiences, in-store and online, today and in the future.” However, Gen Z stands out—they crave hyper-personalization, speed, and seamless technology integration in both physical and digital spaces.
What is Clienteling?
Clienteling is all about building strong customer relationships by understanding shopper preferences and delivering tailored experiences. Traditionally, it relied on the knowledge, memory, and expertise of store associates.
However, today’s buyers expect a smarter, faster, and deeply personalized approach. This is where AI-powered clienteling comes in, revolutionizing how retailers connect with their customers.
The Gen Z Shopping Mindset
Retail TouchPoints previously found that Millennials are willing to share personal data for personalized experiences—a trend that Gen Z is further amplifying. With US$360 billion in spending power and growing (Source: Bloomberg), Gen Z shoppers are already redefining retail.
Traditional marketing tactics no longer appeal to Gen Z. They demand a personalized, human-centered shopping experience on their own terms. They expect it to be:
- Tech-driven to match with their digital habits.
- Highly personalized to make shopping faster.
- Privacy-conscious to guarantee trust and data security.
The sooner retailers adapt to these expectations through AI-powered clienteling, the faster they will gain a lasting competitive edge.
Why Gen Z is Shaping AI-Powered Clienteling
1. Tech-Savvy and Personalization-Oriented
As the most digitally native generation, Gen Z expects shopping to be intuitive and personalized. AI-powered clienteling uses real-time data to provide hyper-relevant product suggestions, offers, and promotions, creating a “phygital” experience that bridges the gap between the digital and physical worlds.
For example, an in-store associate armed with AI tools can greet a shopper by name and immediately suggest products based on their order history, preferences, and demographic trends. This level of hyper-personalization makes shopping easy, something Gen Z deeply values.
2. Privacy Matters
Unlike Millennials, who are more open to sharing personal data for discounts, Gen Z is rather cautious about privacy. This generation demands personalization “on their terms” (Source: Shopify), which means ethical and secure data usage.
AI-powered clienteling solutions respect Gen Z’s privacy using anonymized, non-identifiable customer data and direct associate input. Customers receive the tailored experience they seek with the peace of mind that their identity is protected. However, retailers leveraging these tools must also maintain transparency in their data practices.
3. Sustainability is Key
Gen Z is not just tech-savvy; they are also value-driven. 84% of Gen Z shoppers are willing to pay more for sustainably produced and ethically sourced products. It’s a “win-win-win” for consumers, retailers, and the environment, as the 2023 TCS Retail Survey suggests.
AI-powered clienteling can highlight those sustainable offerings, helping associates align recommendations with Gen Z’s ethical values. This approach fosters trust and brand loyalty.
Enhancing the Shopping Experience with AI-Powered Clienteling
Here are 5 practical ways algorithm-driven clienteling can redefine how consumers shop:
1. Personalized Recommendations
AI analyzes past purchases, browsing habits, social media activity, and even customer milestones like birthdays and anniversaries to suggest timely and relevant products.
2. Time Efficiency
Gen Z values their time. Smart clienteling can identify a shopper’s preference for specific brands and greet them with a curated selection of products as soon as they enter a store. This makes shopping way faster and more enjoyable!
3. Seamless Integration
AI-driven guided selling can bridge the gap between online and in-store experiences, offering features like contactless checkouts, mobile POS, virtual fitting rooms, real-time inventory searches, and more.
4. Associate Augmentation
Associates equipped with AI clienteling tools can finally move beyond rote tasks to deliver exceptional service. Real-time customer insights enable them to act as trusted advisors, making shoppers feel seen, understood, and valued.
5. Data-Driven Decision-Making
In addition to empowering associates, AI provides valuable insights into customer behavior, helping businesses optimize inventory management, marketing campaigns, and store layouts.
Shape the Future of Clienteling with Veras Affinity
It’s clear that retailers need advanced tools to meet the demands and expectations of today’s Gen Z shoppers. Veras Retail exemplifies the future of AI-powered clienteling by equipping retail businesses and frontline store associates with smart, real-time tools.
Veras Affinity is designed to enhance the retail experience, providing actionable insights and personalization at scale. Both associates and customers benefit from the following:
Smart Recommendations: Weighted algorithms consider customer preferences, purchasing habits, and milestones to provide relevant product suggestions.
Quick Contextual Insights: Associates receive actionable tips and insights to create a meaningful, hyper-personalized shopping experience for the masses.
Omnichannel Flexibility: Veras Affinity works seamlessly across in-store, online, and mobile channels, providing consistent service wherever customers shop.
Seamless Purchase Integration: Retailers can convert recommendations into purchases, wish lists, or omnichannel carts. Out-of-stock items can be located via the global search feature and scheduled for pickup or delivery.
Learn more about Veras Affinity and how it can revolutionize your store’s customer engagement strategy today!
