The Impact Of Artificial Intelligence On Personalization In Marketing

By TechDogs Editorial Team

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Overview

Have you wondered why it’s so easy to go to Amazon and purchase something you saw merely minutes ago while scrolling your Instagram feed? Or how you start your evening by watching one episode, and before you know it, you’re three episodes down with the fourth one playing in 3 seconds if you don’t hit stop (ok, maybe that’s just us?).

How have these apps made it so easy for us to scroll one piece of content after the other every single time? Amazon and Netflix (among many others) are masters at personalizing content. Jeff Bezos famously said once that if he has a million customers, that will mean one million different shops tailormade for each customer. You see, marketers use AI to predict and deliver real-time insights into the consumer’s behavior and actions and what are the most likely scenarios that would chart out next.

Back in the day, just a handful of companies could harness the power of this data insight, but with the advent of Artificial Intelligence, you can too. Over 9 in 10 organizations look at AI for personalization — it connects customers with what they want, which creates endless selling opportunities, greater profitability and quicker business growth.

Wish to know more, <insert reader's name>? Just kidding - read on!

You already know by now our die-hard love for Black Mirror that lets us slide the curtain and peek at the dystopian future set ahead of us. One episode dropped our jaw – Salma Hayek in ‘Joan is Awful’. Our eyes scroll past numerous ads, content and video ads every single day. However, if you saw your exact life story, the exact words you said that day, the exact same chain reaction to your thoughts displayed in the form of content right before you. You will stop and watch no matter how busy you are, right?

Creativity and personalization don’t happen by chance and who better than a marketer to know this? Is it possible to create content that is so hyper-personalized for you that you have no doubt it was made just for you? How can brands harness this power to create more effective marketing? What role does Artificial Intelligence play in this?

Marketers know that creativity attracts audiences and can command attention and we agree wholeheartedly. In today’s episode, we take you through what AI has in store for your brand’s personal journey and how you can harness this power!

How Is AI Used For Personalization?

At times, do you feel like this ad was made just for you, handcrafted by a human who just gets you? Enter the talk of the town, our very own Artificial Intelligence. AI and ML help marketers analyze vast consumer data, which include browsing habits, purchases, likes, dislikes, social media interactions, search engines and their unique habits.

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This information is used to learn the specific needs and preferences of each customer. This involves utilizing data and insights to create custom experiences for customers, such as targeted ads or product recommendations.

How does this help organizations? Through personalization, businesses can build stronger relationships with consumers, enhance the customer experience and improve ROI. Let’s dive a little deeper into how you can harness this power to your advantage. Scroll on!

Why Should You Use AI For Personalization?

Did you know that failing to deliver personalization can lead to a significant revenue impact, with an abundant percentage of consumers less likely to buy and 27% abandoning the brand?

Imagine that 27% of your cart abandonment is caused directly by a lack of personalization, which is a huge dent for any scale. Consumers demand personalization and are more likely to have a richer consumer journey when personalized. The power of personalization in marketing leads to:

Seamless User Experience

Having personalized content that’s relevant to the consumer helps the customer feel valued and catered to.
Better Customer Experience

Businesses can improve their engagement with tailored content and messaging that resonates with the user.
Increased Revenue

Improve the relevancy and timeliness of your marketing and optimize each level of the funnel – leading to higher conversion rates!
Reduced Customer Churn

Personalized content can lead to lower cart abandonment rates due to shorter and more accurate consumer journeys.
Data-driven Insights

Businesses can make decisions based on consumer likes, dislikes, behavior patterns, purchase history, spending history, etc., for data-backed decision-making.

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Yup, pretty smooth! Now let’s find out how we can make AI work for better personalization!

How Can Marketers Use AI For Personalization?

There are several ways that marketers are using AI to enhance their personalization for their consumers. Here are some of the top applications:

Higher Open Rates

While the average email open rate is around 21%, it increases to close to 30% with personalized and targeted marketing.
Speaking User’s Language

By crunching millions of data points and using AI, businesses can use language that appeals to the reader and makes an impact.
Content Personalization

From tailored suggestions to product descriptions, AI-driven personalization can engage your customers at every level.
Individualized Email Marketing

This is an indispensable tool for marketers as customized content and mailers can help businesses drastically improve their open rates and expand the funnel.
Customer Segmentation

Identifying groups of customers using AI segmentation is simpler, helping create curated content via customer insights.
Customer Journey Optimization

Personalization is the name of the game and AI-driven personalization can help align the consumer journey, helping create a seamless customer experience.

That’s how AI can help boost personalization – hope all the marketers took notes!

To Wrap Up

All in all, AI-powered personalization is an exciting development and majorly affects the world of marketing. By collecting and analyzing vast amounts of customer data, marketers can provide personalized experiences to each customer, leading to improved customer engagement, boosting revenue and reducing churn.

AI technologies continue to evolve and we can expect that AI-powered personalization will further enhance the customer experience and drive business success in the future!

Frequently Asked Questions

What Is AI For Personalization In Marketing?

Artificial Intelligence (AI) for personalization in marketing involves leveraging AI and machine learning (ML) algorithms to analyze extensive consumer data, including browsing habits, purchases, social media interactions and more. This data is used to understand individual customer preferences and behaviors, enabling marketers to create tailored experiences such as targeted ads and product recommendations. The aim is to provide hyper-personalized content that resonates with each customer on a deeper level, enhancing engagement and driving business outcomes.

Why Should Businesses Use AI For Personalization In Marketing?

Businesses should use AI for personalization in marketing because failing to deliver personalized experiences can have a significant negative impact on revenue and customer loyalty. Studies show that a large percentage of consumers are less likely to buy from brands that don't personalize their interactions, with many even abandoning brands altogether. Personalization not only improves the customer experience by providing relevant content but also leads to higher conversion rates, reduced churn and better data-driven decision-making. Ultimately, it can significantly enhance the overall effectiveness of marketing efforts and contribute to business growth.

How Can Marketers Utilize AI For Personalization In Marketing?

Marketers can harness the power of AI for personalization in various ways. Firstly, AI can help improve email marketing by increasing open rates through personalized content. Additionally, AI enables businesses to speak the language that resonates with their audience by analyzing vast amounts of data. Content personalization, individualized email marketing, customer segmentation and optimizing the customer journey are some other applications of AI in personalization. By leveraging these capabilities, marketers can create seamless and tailored experiences that drive engagement, conversions and customer satisfaction.

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