AI personalization refers to the categorization of different customer data sets and the extraction of valuable insights from them, so as to create distinct persona & personalized interaction. 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, so as to automatically optimize conversions. This enables 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). With this it can send out tailored marketing messages based on the 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 to trigger automatic marketing messages in a way that’s never been possible before. For example, geo-location now means that as well as knowing a customer’s demographics and where they live, you 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 store offer, just when they seem to be close to the 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 for example, a bot that is automatically generating product pages for various colored or themed phone cases.
Algorithm-driven design tools or content systems can also customize and personalize the user experience automatically, working with human designers to optimize a design and to personalize the UX. This make a site or app not only individually easier and more pleasant, but also more likely to convert.
AI has already worked wonders in email marketing, rendering it more dynamic & personalized. Much more is possible in the future and it is all driven by data. For this reason, it makes sense to collect as much data as possible, even if you can’t always use it right away.
Tracking tools like Google Analytics but also social media platforms, and customer reward programs are effective ways to collect data. But only if you have the right tracking and data collecting software installed and if you are using them now – so don’t delay using these platforms. It is not a task that you can keep putting off to a future date.
As Big Data continues to get bigger and technology becomes more advanced, these AI-driven tools will continue to evolve and to open up new possibilities in marketing.
Despite the potential that advanced 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 their possibilities. That wll ensure you of an advantage for whatever is coming in the future.
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