In the rapidly evolving world of retail, the fusion of artificial intelligence and human behavior is creating a new frontier for customer engagement. To navigate this landscape, we sat down with Milena Traikovich, a leading expert in demand generation who specializes in optimizing performance and analytics for major brands. Our conversation explores the core findings of the recent “We Know the Nation 2026” report, focusing on how cultural and cognitive shifts are reshaping consumer habits. We’ll delve into how AI can streamline the shopping experience, the critical role of value in building customer confidence amidst economic pressures, and the delicate balance of using data science to create more human, less complex interactions.
How can retailers use AI to streamline shopping journeys both online and in-store? Could you give a step-by-step example of how this improves the customer experience, moving beyond the technology itself to build better brand relationships?
It’s a crucial point that the focus can’t be on AI in isolation. The technology itself isn’t the goal; a great customer experience is. Imagine a shopper starting their journey online. AI can analyze their past purchases, like those recorded on a Clubcard, to present clearer, more relevant choices, cutting through the noise. When they enter the physical store, that same AI can power an app that guides them to those items, perhaps even highlighting a special offer on a product they frequently buy. This isn’t just about efficiency. It’s about showing the customer you understand their needs and are actively helping them. This process transforms a simple transaction into a supportive interaction, which is the foundation for a stronger, more trusting brand relationship.
With shoppers making more intentional, value-driven decisions, how can brands leverage AI to help customers manage their budgets? What specific metrics would you suggest for tracking how well a company is communicating value and building consumer confidence?
Value has become the central pillar of the shopping experience, especially with ongoing cost of living concerns. Customers are making highly intentional decisions, and AI can be their ally in this. For instance, AI can power personalized promotions that are genuinely useful, not just random noise, or create shopping lists that maximize a weekly budget based on current sales. The key is to protect the customer’s confidence just as much as their wallet. To measure this, you need to look beyond simple sales figures. I’d recommend tracking the redemption rate of value-focused offers, monitoring customer loyalty through repeat purchases, and analyzing feedback for keywords related to “value” and “trust.” These metrics show whether you are truly helping customers feel secure and smart about their spending, which builds lasting confidence.
We’re seeing shifts in consumer culture and cognition, with people managing more choices than ever. How can brands blend data science and creativity to address this? Please walk me through how an insight about an emotional need could be translated into a clearer, more human interaction.
This is where the art and science of retail truly merge. The data, like insights from Clubcard activity, reveals two major patterns: a cultural shift toward new social values and a cognitive evolution in how we process overwhelming choice. The data might show us, for example, that a segment of shoppers is feeling stressed and seeking balance. That’s the emotional need. A purely data-driven approach might just push “healthy” products. But blending it with creativity means understanding the feeling behind the data. Instead of just another ad, you could create content around simple, joyful meal prep or offer a curated “weekly unwind” basket. This translates the cold data point—”customer seeks balance”—into a warm, human solution that says, “We see you, and we’re here to help make life a little easier and more enjoyable.”
Consumers are reportedly seeking more balance, clarity, and connection. How can AI-driven personalization help reduce complexity for shoppers rather than adding to it? Could you share an anecdote where a brand successfully used technology to bring a sense of joy or connection to the shopping experience?
The ultimate goal of personalization should be to provide clarity, not more complexity. When a shopper feels overwhelmed, AI can act as a filter, simplifying their choices to what is most relevant and valuable to them. It’s about moving from a massive, confusing catalog to a curated, helpful selection. Think about a brand that uses purchase data to recognize a customer is planning a birthday celebration. Instead of just bombarding them with ads, the AI could present a single, timely suggestion: “We see you’re buying cake mix and decorations. Here’s a 20% off coupon for ice cream to complete the party.” This small, intelligent interaction does more than sell a product. It creates a moment of connection and joy, making the shopper feel understood and supported during a meaningful life event. That’s how technology can feel truly human.
What is your forecast for the retail landscape?
My forecast is that the retail market will continue to mature at a rapid pace, with the most successful brands being those who master the blend of data science and human creativity. The signals are clear: people are reshaping their habits and looking for balance, connection, and clarity in all aspects of their lives, including their shopping. The question is no longer just about offering choices, but about making those choices meaningful and manageable. Retailers who use technology not just to sell, but to genuinely understand and respond to these evolving human needs—to provide utility, timeliness, and a touch of joy—will be the ones who thrive in the years to come.
