Part 2 of series - Personalization at Scale.
The value of personalization is in trillions of dollars!
Marketers know creativity is what attracts an audience and commands its attention. Personalization is what delivers the right message to the right target at the right time to convert a prospect into a customer.
For the greatest thinking on creativity and strategy, organizations will always depend on people. One of the biggest challenges businesses face is how to combine these creative solutions, to deliver both relevance and innovation, and do it at scale.
AI can now scale creativity and strategy, expanding human ingenuity to wider audiences - enabling marketers to transcend the limits of manual interactions and personalize marketing to its different set of customers
AI-powered personalization involves using artificial intelligence and machine learning to analyze customers' data, understand their preferences and needs, and tailor their experience accordingly.
The implementation requires clear objectives, high-quality data, continuous testing and refinement, transparency, and integration across all touchpoints. The benefits of AI-powered personalization include improved customer experience, increased revenue, reduced churn, and data-driven insights.
Marketers can use AI-powered data science to narrow in on specific sets of customers, on criteria such as their predicted lifetime value - and personalize content for these customers with dynamic product recommendations. AI could also help them to analyze their data for insights on when to send campaigns, who to target, and what content to include. And by using automation, they can do all this at scale.
With these new capabilities, organizations can better drive customer engagement and loyalty, and tailor messaging to those consumers who will get the most out of it—all while automation helps employees focus on creativity and strategy rather than laborious legacy tasks.
In that way, AI and automation could drive better business results and give the marketers that use them an edge over their competition.
Advantages of AI-powered personalization
Better customer experience
By tailoring the CX to each individual’s preferences and needs, AI-powered personalization can significantly improve customer satisfaction and loyalty. The personalized experience gives customers a sense of being understood and valued.
Increased revenue
By recommending products and offers that are highly relevant to each individual customer, businesses can increase the likelihood of a purchase and boost overall revenue.
Reduced customer churn
Customers are more likely to stay loyal to a business that understands their preferences and provides a personalized experience.
Data-driven insights
AI-powered personalization provides valuable data insights into each customer’s behavior and preferences. Businesses can use this data to better understand their customers and optimize their marketing and sales strategies accordingly.
Successful Case Studies using AI-powered personalization –
Amazon’s recommendation engine-
The system uses a machine learning algorithm to analyze customers’ purchase history, search records, and other behavioral data, to predict products the customer can be interested in, and recommend them in real time. Such personalized recommendations have played a significant role to increase customer engagement and sales for Amazon.
Netflix
It uses machine learning algorithms to recommend TV shows and movies to its subscribers based on their watching history and preferences. These personalized recommendations have greatly improved customer engagement and retention, covering about 80% of streaming hours on the platform. By tailoring the customer experience to each individual’s preferences, Netflix has been able to grow and retain customers over longer periods.
Sephora
It creates a more personalized and engaging shopping experience for its customers, using machine learning algorithms - to analyze customers’ facial features to recommend them makeup products that are suitable for them. The company has reported that this recommendation tool has increased customer satisfaction and trust, as the customers using this tool are more likely to make a purchase than those who do not.
Conclusion
If you think this post was helpful, then check out the upcoming CX trends. So, that your innovation department can innovate around them to elevate your business.
Also, if you need any help regarding your business’ customer experience connect with us anytime at anjali@c-xcel.com or call us at +91 9599496661.
You can also listen to us on our C-Xcel podcast!
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