How AI-Driven Hyper-Personalization & Smarter Engagement Drives Revenue

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In our latest CommerceNext webinar, retail leaders from KEEN Footwear, Artisant Lane Furniture Collective, TeePublic and AB Tasty came together to explore how AI-powered personalization and smarter engagement strategies are transforming the ecommerce experience. The conversation dove into evolving consumer behavior, segmentation strategies and AI’s role in reducing friction along the buyer journey.

What We Learned:

  • Using AI-powered segmentation to better serve anonymous web visitors
  • Leveraging emotional intelligence (Emotions AI) to personalize based on shopper psychology
  • Utilizing smarter experimentation to test and optimize personalization strategies
  • Understanding the growing importance of flexible preferred payment options
  • Creating brand loyalty through recognition, community and relevance

 

Speakers:

  • Dana Schwartz, SVP Global, DTC & Digital, KEEN Footwear
  • Justin Emig, CTO, Artisant Lane Furniture Collective
  • Leslie Emmons Burthey, Former SVP of Marketing, TeePublic
  • Marilyn Montoya, Chief Marketing Officer, AB Tasty
  • Moderated by: Allan Dick, Co-Founder, CommerceNext

 

Watch the replay here or read the recap below.

 

Personalization Isn’t Just for Logged-In Users Anymore

As Montoya explained, because 86% of web traffic comes from anonymous users, it’s critical to deliver value without relying on login data. Using EmotionsAI, brands can detect psychological needs like comfort, urgency or a desire for safety in just 30 seconds. These emotional cues shape everything from homepage content to checkout messaging, making experiences more relevant and likely to convert.

Through predictive personalization and AI-powered experimentation, brands shift from guessing what works to knowing what does. In one test, customizing the checkout page based on emotional segments increased conversions by up to 14.8%. The future of personalization lies in meeting customers where they are—emotionally and anonymously—using data-driven insights that drive real results. 

Consumer Behavior is Changing—Fast

The shift in how consumers shop is also changing how brands engage. Emig, Artisant Lane Furniture Collective, noted that in high-consideration categories like luxury furniture, customers need more than personalization—they need guided experiences. His team uses AI to track product interest and buyer intent, then tests homepage variations and messaging to reduce cognitive load and help shoppers move confidently through the funnel. Flexible payment options like Klarna and Apple Pay also play a key role, especially when dealing with higher-ticket purchases.

Cart abandonment remains a pain point, with 40% of shoppers saying they’re simply “not ready to buy.” The reasons range from missing product details and lack of confidence in quality to frustration with checkout steps or limited payment options. Retailers who reduce this friction—through Apple Pay, Klarna or guest checkout—see stronger conversion rates.

A New Era of Loyalty: Recognize, Reward, Reassure

Shoppers today expect more than loyalty points—they want to feel understood. Schwartz, KEEN Footwear, emphasized that AI-powered personalization can reflect deeper brand values. For KEEN, it’s about delivering relevant, meaningful experiences that align with the company’s sustainable, customer-first ethos. Whether it’s recommending the right product based on a customer’s outdoor lifestyle or surfacing content that feels human and helpful, personalization should build connection—not just conversion.

Similarly, Burthey, drawing on her experience at TeePublic, pointed to the importance of removing friction and building trust through relevance. For her, AI is key to identifying small but impactful moments—like recommending products in a customer’s preferred size or skipping unnecessary checkout steps.“It’s not about blasting offers,” she said, “it’s about making people feel like they belong.”

Personalization That Learns and Adapts

One recurring theme throughout the webinar was the importance of testing and optimizing. As Montoya shared, personalization isn’t one-and-done—it’s a conversation that evolves with every click. For example, one brand tested a message targeting safety-minded shoppers at checkout. A simple change in messaging resulted in a 14.8% lift in quote requests. Another test removed a search bar from the cart page—after seeing it negatively impact conversion—proving that even well-intentioned ideas need data to back them up.

Creating meaningful customer experiences in 2025 will require empathy, data and agility. Brands that embrace AI not just to automate, but to humanize will win.

For more insights like these, register for the 2025 CommerceNext Growth Show on June 24–26 in NYC. Register here.

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