How Artificial Intelligence Can Enhance Your Personalization Strategy
While it is possible to create a personalization strategy manually, it requires a significant amount of time and effort. Manual personalization is costly and often not feasible for large organizations. Thankfully, AI can help you create a strategy faster and often more effectively than manual efforts can. Below are some of the ways AI can help.
Collect Data Efficiently
You can use AI to automate personalization across customer channels, including email, social media, and online ads. Likewise, AI can help you target upsells and product recommendations to customers in a timely fashion. However, effective automation requires understanding who your customers are and what they want.
A standard CRM typically only captures basic customer data, such as age, gender, spending, or location. This provides a limited, static picture. The same problem is true of buyer personas, which are often generic. To maximize the benefits of personalization, you need to create dynamic customer profiles that adapt to changes in customer behavior.
Using personalization AI, you can more effectively collect and analyze your customer data. This includes data on real-time location, behavior, and personal values. This data can provide the context you need to create meaningful personalization.
Avoid Data Paralysis
Even if you are collecting large and diverse amounts of customer data, it is only useful if you can apply it. This means focusing on the collection of data that is relevant and can be analyzed meaningfully. It also means actively using your data.
While it may be tempting to put off personalization until you have “a complete picture”, this is an unrealistic goal. You will never be able to collect all of the data that is available and even if you could, you likely wouldn’t be able to process it. A better strategy is to use AI to develop a model in real-time. As you gain data, you can feed it to your AI to improve your model and strategy.
Create Unique and Relevant Experiences
In the past, it was common for marketers to rely solely on models of ideal customers or prototypes of customer groups. These models provide basic characteristics and a point-in-time understanding of customers. This was a reasonable basis for some targeted marketing campaigns but cannot provide enough insight for effective personalization.
By leveraging efficient data collection and analysis, AI enables you to create dynamic customer profiles. These profiles allow you to personalize campaigns in real time, adapting to customer context and needs. This adaptive approach can help ensure that customers feel unique and understood
Examples Of Artificial Intelligence to Improve Personalization
To better understand what you can achieve with AI, it can be helpful to learn about some examples of successful strategies.
Threads’ Personal Stylist
The idea of a free personal stylist is a dream for many shoppers but can be a costly nightmare for businesses. Luckily, AI can provide the free personalization customers want at a significantly reduced cost for businesses. Thread, a UK-based fashion retailer, is one company taking advantage of this opportunity.
Using AI, Thread can treat its customers to personalized recommendations based on style quizzes answered by the customer. Customers are polled each week with recommendations that they can either approve or reject. The AI then takes these responses and improves each customer model accordingly.
Hilton Hotels’ Connie
Hilton Hotels have adopted AI in the form of a concierge service named Connie. Connie is designed to help personalize guests’ experiences and to make staying at a Hilton as enjoyable as possible.
This AI is implemented as a small, humanoid robot that greets guests in the lobby and readily answers any questions they may have. It includes natural language processing features that allow it to converse with guests to determine their preferences and develop recommendations for activities or restaurants. Connie can also help guests with other hotel amenities, reducing the workload of reception staff.
Under Armour’s Personal Trainer
Although Under Armour is known for clothing, it also provides services designed to keep its customers healthy and active. These efforts are seen in Record, Under Armor’s fitness app.
This app collects users’ health information, including sleep, physical activity, and diet, and analyzes it with AI. Based on these analyses, Record then makes suggestions for user health goals and workouts. The AI can also help users analyze their workout patterns and make suggestions to improve their effectiveness.
Rare Carat’s Rocky
Rare Carat is a diamond marketplace that uses AI to help shoppers make informed purchases. On their site is Rocky, an AI-powered assistant which helps customers. Customers can use Rocky as a guide during their search for the right diamond ring. Using AI, Rocky provides evaluations of various rings and informs customers about important characteristics and tradeoffs, including cut, clarity, and price.
Levi’s Virtual Stylist
Many customers have experienced the frustration of trying to find the perfect pair of jeans. Levi’s understands this frustration and aims to reduce it with the inclusion of its AI-powered stylist chatbot, Virtual Stylist. Using natural language processing, this chatbot responds to customer questions and gathers information on their needs and preferences. The collected data is then analyzed and combined with the expertise of live stylists to provide personalized recommendations.
You can apply AI personalization in a variety of fields, from website product personalization to AI-based chatbots, and even AI-powered robots. Through the use of hyper-personalization, your customers can get offerings and advice relevant to their unique taste, and enjoy 24-7-7 customer service. Be sure to match the AI solution to your budget and requirements, and experiment until you find the personalization strategy that serves your users best.