How AI Is Increasing the Personalization of Marketing Strategies

We may live in the digital age, but our desire for personalized interactions isn’t waning. In fact, we are especially keen to receive customized interactions from brands.

McKinsey documented this phenomenon a few years ago. The firm’s research showed that 71% Consumers want personal attention From businesses. When they get it, they are more likely to increase their spending as well as make future purchases. According to the findings of Twilio’s The State of Personalization Report 2023, there will be a single personalized experience Move the “Buy Again” Needle For 56% of buyers.

For marketers, consumer interest in personalization presents both opportunities and challenges. On the one hand, it is clear that providing customized engagement can be beneficial. On the other hand, figuring out how to personalize efficiently and effectively can be difficult. This is where AI solutions can help.

AI tools such as software, systems, mobile apps, and integration allows marketing teams to connect with people in a way that was never possible before. When leveraged in an assistive capacity, AI can ensure that marketing approaches and communications feel authentic but don’t break the bank.

Top AI Applications for Marketing

Without a doubt, AI has many applications in the marketing field to promote personalization. However, five AI applications in particular are becoming more influential as brands strive to show consumers that they are seen, heard, and valued.

1. Ability to predict the future

No one has invented a crystal ball, but AI tools may come close to looking into the future. Because AI tools work at lightning-fast speed, they can identify hidden trends within large amounts of data in seconds. Once identified, those trends can be used to present tailored experiences.

For example, many companies are leveraging AI to more confidently reach target audiences without relying on cookies or limited “lookalike” audiences. As Nativo explainsAI can use first-party data to accurately determine when customers are likely to take a certain action, such as re-ordering a product. Armed with this foreknowledge, marketers can send messages (such as “time to buy again” email reminders) when consumer demand will likely be highest.

By being able to know your consumer base better, you can anticipate problems and offer intuitive solutions. As a result, your customers will feel that you are tailored to their unique wants and needs.

2. Ability to personalize at scale

Not long ago, personalization was hard to master. This will be especially difficult if your company grows. Now, AI makes personalization at scale a reality for organizations of all sizes.

Amazon is an obvious use case for personalization at scale. Despite having an estimated 310 million customers, Amazon does a solid job of optimizing its messaging, and it’s all due to its willingness to rely heavily on AI systems. Its impact has increased customer loyalty so much that on Amazon Prime Day in 2020, 60% of Prime members shopped only from Amazon, even though they had cost-effective alternatives.

By being able to personalize at scale, you don’t have to worry about losing one-on-one contact, even if you have thousands (or millions) of customers. This enables you to maintain a competitive edge and grow a loyal customer base, no matter how big you are.

3. Ability to automate conversations

Of all the AI ​​marketing applications, automation There has been an undeniable communication gamechanger. Automation allows your brand to stay top of mind without requiring your people to be “on call” 24/7. It also ensures that customers don’t feel ignored or “intimidated” by your brand.

Almost any repetitive process can be automated. For example, you could possibly automate your lead generation machine 451% increase in qualified leads, Or, you may want to create automated paths to move consumers through your sales funnel more effectively.

Are you worried that your automation is going to sound robotic? Many AI innovations leverage natural language processing (NLP) and machine learning. As a result, they can deploy automated responses that feel streamlined, intuitive, and – best of all – human.

4. Ability to do better (and faster) research

AI can analyze both structured and unstructured data faster than any human. By running data points through an AI-fueled system, marketers can conduct better research. After all, AI is taking a ton of data into account.

There are many ways you can use your AI-supported research findings, including improving your social media listening. AI can scour popular social media sites in real time to find mentions of your company. This ensures you’re the first to know if something negative is being said. If this happens, you can take immediate action. The faster you respond to online concerns about your brand, the more likely you are to be able to do so. take control of the situation And put out any fires.

An additional benefit of AI’s ability to conduct research is that it can happen in the background and at regular intervals. You and your team don’t have to take care of the process, which means you can spend more time exploring other ways to personalize your customer outreach methods.

5. Ability to help customers help themselves

Another strategic way to bring personalization to your consumer base through AI is through self-service options. Many consumers with issues will want to resolve them themselves before contacting your company. As such, consider bringing AI solutions like chatbots into the mix.

Although chatbots shouldn’t replace your customer service agents, they can be great first-line assistants. When investing in a chatbot, choose one that is programmed to make exchanges more human and less machine-like. Choosing a person trained on NLP can be a good step.

As pointed out by Landbot, NLP is not just about choosing the right words for the session. High-quality chatbots are equipped with the ability to perform sentiment analysis, meaning they can “read the room.” This way, chatbot responses will always be as personal as possible.

At first, providing personalization may seem like an overwhelming task, especially if you’re working with a small team and a minimal budget. However, existing and emerging AI technology can give your customers the personalized attention they want – and your brand the success it deserves.