AI personalization refers to the categorization of different customer data sets and extracting valuable insights from them. These insights are fed into an automation engine that can take action without human intervention.
AI personalization can be applied to enhance your marketing campaigns in five interesting ways.
Predictive personalization uses data analysis and profiling tools to adapt content in real-time to optimize conversions automatically. This enables much more complex personalization powered by machine learning algorithms.
For example, a travel company could use customer data about previously booked flights and hotels, browsing history, and activity on social media to predict locations that are likely to appeal to each individual and the type of activities they might be interested in (adventure activities, spas, family-friendly excursions) and send out tailored marketing messages based on this data.
This type of personalization goes beyond even highly targeted “micro-segmentation” to achieve a unique offer optimized for each individual.
The real-time power of AI also means it’s possible to adapt and trigger automatic marketing messages in a way that’s never been possible before. For example, geo-location services now mean that as well as knowing a customer’s demographics and where they live, you can also know where exactly they are at any point in time. This data can then be used to trigger location and time-sensitive marketing alerts such as a special one-day-only offer when they’re close to a particular store.
This rapidly increasing impact and benefits of AI in digital marketing are being used for new and innovative applications all the time and we can only guess at how the changing face of marketing may look a few years from now.
Some companies are already using AI to drive personalized product development, such as the supplement company Nutrigene, who will send you tailor-made liquid vitamins based on your lifestyle and DNA.
If Nutrigenics sounds a bit far-fetched, this type of personalization has applications in less technical products too, such as this bot that is automatically generating product pages for phone cases (although it’s clear from this example that the technology still needs some refinement!)
Algorithm-driven design tools can also be used to customize and personalize the user experience automatically, working with human designers to optimize a design and personalize the UX making it not only easier for each individual to use, but also more likely to convert.
AI is already working wonders in email marketing, the hotbed of personalization. Nobody knows exactly what will be possible in the future, but it’s certain to be driven by data. For this reason, it makes sense to collect as much data as possible now, even if you can’t use it straight away.
Tracking tools like Google Analytics, social media platforms, and customer reward programs can all be effective ways to collect data, but they can only do so if you have the software installed and are using them now – so don’t delay another day if using these platforms is a task that you keep putting off to a future date.
As Big Data continues to get bigger and technology becomes more advanced, these AI-driven tools will also evolve and open up new possibilities in marketing.
Despite the potential that advance personalization offers, only 7% of organizations identify it as their number-one marketing priority. However, 57% of consumers are willing to offer up their personal data in exchange for customized offers and experiences.
Now is the time to start investing in these tools and learning more about the possibilities, to ensure you can take advantage of whatever is coming in the future.
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