Valtech report: many retailers say their personalisation strategies are in pilot or basic stages

UK consumers are missing out on personalised shopping experiences as retailers admit they’re stuck doing the basics.

That’s according to a new Valtech report based on a survey of 700 retail decision-makers across North America, Europe, LATAM, Asia, and MENA. Despite years of investment, many brands report ongoing data and integration challenges that may threaten to limit the effectiveness of personalisation.

Figures show that although most retailers continue to develop their personalisation offers and strategies, just over a third describe their efforts as “advanced”. In fact, only one in seven says they have fully embedded it across all their channels and touchpoints.

Most continue to rely on email campaigns (36%), loyalty programmes (35%), and basic behavioural targeting (34%), while at the same time, measurement practices remain surface-level: 39% track conversion rate improvements, 38% monitor CSAT/NPS, 27% measure repeat purchases, and only 21% track customer churn.

Even among large, digitally mature retailers, delivering a seamless omnichannel experience remains a challenge. While 46% describe their customer experience offering as “fully unified across all touchpoints,” 35% admit ”gaps exist” in integration, and 19% still operate with “basic, siloed or entirely independent systems”.

When asked about potential challenges, 96% reported at least one significant obstacle, with the most common being customer identity consistency (17%), data integration between systems (16%), inventory visibility (12%), and measurement or ROI clarity (10%).

This exposes deep flaws in how retailers manage and deploy customer experiences. For shoppers, this translates into common frustrations, such as malfunctioning shopping baskets, missed discounts, and store assistants who are unaware of stock levels.

On the other hand, this disconnect not only frustrates shoppers but also affects retailers’ revenues. Each missed handoff between store, app, and web erodes trust and drives customers toward bigger, better competitors who have perfected their omnichannel delivery.

AI

When it comes to AI, the data shows widespread adoption among retailers. 97% have implemented or tested AI in some form, mostly using it to deploy chatbots and virtual assistants (51%), offer product recommendations (48%), or optimise campaigns (47%).

The top motivators for adopting AI are split between enhancing customer experience/personalisation (45%), improving operational efficiency/reducing manual work (50%), and reducing costs/optimising resources (31%).  

Yet despite all this, progress remains limited. 44% of those who have implemented or tested AI say they’ve struggled to move beyond pilot phases or achieve consistent success. Retailers blame a lack of in-house expertise (36%), poor data quality/governance (33%), high implementation costs (33%), and competing internal priorities (32%).

Despite many retailers claiming advanced personalisation capabilities, the study shows that only a small percentage can do it intelligently, in real-time, and across all channels.

“The retail industry is at a crossroads,” says Matt Hildon, European Retail Director at Valtech. “After decades of digital investment, most brands still struggle to connect data with human behaviour. Shoppers are tired of being treated like transactions. True innovation won’t come from more automation, it’ll come from rebuilding trust and making personalisation genuinely personal.”

RTIH AI in Retail Awards

RTIH proudly presents the first edition of its AI in Retail Awards, sponsored by 3D Cloud and EdTech Innovation Hub.

This is now open for entries. Deadline for submissions is Friday, 5th December. It’s free to enter and you can do so across multiple categories.

Check out categories and entry forms here.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.