As Shoppers Turn to AI-Driven Experiences for Value and Personalization, Retailers Must Orchestrate Trusted Omnichannel Experiences This Holiday Shopping Season
DALLAS – September 23, 2025 – A new independent survey of 1,500 U.S. consumers reveals that 67% are concerned about rising prices, tariffs, and inflation impacting their holiday shopping, with 76% actively looking for discounts and promotions to reduce holiday shopping costs. The first annual Monetate Holiday Shopper Survey, conducted in late August, also revealed that shoppers are increasingly turning to AI-driven experiences for value and personalization, as 69% of respondents are interested in using AI tools to find gifts, deals, and recommendations.
The survey, commissioned by Monetate, the leader in Experience Optimization, also found that consumers are approaching the 2025 holiday season with measured optimism amid ongoing economic uncertainty.
“Our survey data shows that over half of consumers anticipate spending the same amount or more on holiday gifts compared to last year,” said Monetate CEO Steve Maher. “And while many are bargain-hunting, over 60% still plan to splurge on themselves or others this season. This balance between bargain-hunting and selective splurges presents a strategic imperative for retailers to deploy AI-driven personalization to deliver targeted value in real-time.”
By leveraging behavioral data to surface tailored promotions, such as private-label alternatives for price-sensitive consumers, retailers can achieve 15-20% more conversions. Furthermore, this approach initiates a virtuous cycle of engagement, where personalized interactions encourage repeat visits while deepening shopper loyalty.
Other key survey findings highlight a new era in holiday shopping:
A clear hierarchy in spending priorities: 46% of respondents will prioritize apparel and footwear, followed by electronics (35%) and groceries/household items (34%).
“Treat yourself” ethos prevails: 40% of shoppers will splurge on electronics followed by travel and experiences (37%), dining and entertainment (34%), beauty and personal care (28%), and luxury goods (35%) this season.
A blend of online and in-store shopping: consumer journeys are evolving towards seamless integration with 65% planning greater reliance on retailer websites and apps, 58% favoring in-store visits, and 21% opting for buy-online-pickup-in-store (BOPIS). Loyalty to local businesses remains strong, valued by 62% of respondents, while social media influences 32% of purchases. However, online stores (63%) and mobile devices (43%) edge out physical stores (42%) as the preferred shopping channels, further emphasizing the need for more unified experiences.
AI is on the rise: 69% of respondents are open to AI guidance and 46% would use AI to find gifts and deals. However, caution prevails as 53% expressed some reservations about using AI, often citing privacy concerns (30%).
Why This Matters:
The report outlines fifteen strategic imperatives to help retailers engage shoppers and optimize operations during the critical holiday season. Highlights include:
Best ways to engage cost-conscious consumers
- Deliver real-time, price-sensitive promotions via AI, tailoring private-label options to behavioral profiles.
- Optimize discounts through dynamic A/B testing, adjusting thresholds based on purchasing history.
- Bundle essentials with indulgences, such as electronics and apparel, to elevate order values by up to 25%.
- Spotlight gift cards with targeted pop-ups, refined via algorithmic experimentation.
Create seamless omnichannel experiences
- Leverage geo-targeted offers and BOPIS reminders to boost comparisons by 30%.
- Unify loyalty journeys across channels with context-specific AI messaging for deeper loyalty.
- Simplify gift-giving by streamlining flows with AI-guided finders and e-gift prompts, especially post-shipping deadlines.
Build trust with ethical AI
- Deploy consent-based personalization for gift guides, influenced by trusted sources to enhance engagement.
- Amplify social proof through integrated reviews, accelerating decisions with profile-tailored labels.
Adopt continuous experimentation
Adopt continuous experimentation by iterating via A/B testing and scale personalization variants. This will fuel a virtuous cycle of insights, refining strategies for superior conversions and value.
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Download the full report to explore 15 imperatives for engaging cost-conscious shoppers, building loyalty, and turning seasonal buyers into lifelong customers
