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Marketing Consultant Shares Insights blog

Jan 18, 2023 Written by  Yican Li

Businesses must adapt their marketing strategies to the 63% of consumers who now anticipate customization as usual. However, providing a fully personalized experience necessitates the gathering and analysis of a vast amount of data to comprehend the demands of your clients and identify the most efficient ways to engage them. AI can help in this situation.

The role of AI in personalization: How AI is being used to create personalized marketing campaigns and customer experiences.

AI has become an increasingly important tool for personalization in marketing and customer experience. Here are some ways in which AI is being used to create personalized campaigns and experiences.

1)     Emails and messaging 

To send out emails and messages that are tailored, marketers can collect more data and analyze client preferences with the aid of AI and machine learning. It can automatically generate an engaging message for each person based on the type of content that will engage that person in each situation.

Using automated rules based on historical and current data, AI makes sure that emails and messages are sent to each consumer at the most beneficial time of day. Additionally, it can send communications that are specifically tailored to a customer's location or recent online activity. An example of this is push notifications. They draw consumers' attention by displaying on their smartphone screens and posing questions like, "Still interested in [product]? Return to our website to receive a 10% discount”.

2) Tailored recommendations 

Making recommendations for the goods and services your customers genuinely want is another method AI aids in engaging your clients. Once more, AI models pick this up from user behavior and website traffic statistics, and they get wiser the more information they process.

Companies like Spotify and Amazon, for instance, have created recommendation algorithms that dynamically present clients with several possibilities. They employ content-based filtering and collaborative filtering to suggest related products based on their features or the interactions that various user groups have had with them.

AI is also capable of providing users of your retail website with tailored recommendations. A chatbot may present a list of products based on the keywords used in the discussion and past purchases. If the consumer decides to proceed with the purchase, the chatbot may also give a loyalty-based discount and suggestions for related products.

3) Dynamic websites

Making recommendations and sending tailored messages is one thing, but how about letting each consumer view a unique version of your website? Using current behavioral signals and previous browsing or purchasing histories, AI makes it possible.

Dynamic websites change their layout and display different products based on the user. For instance, if you and I enter our Netflix accounts on our laptops, we will see different homepages since the service utilizes our prior viewing history to suggest content we will enjoy

Utilizing information such as popular searches, trending subjects, and user location, machine learning also aids in content customization. Some websites exploit the local weather to suggest similar products, such as sunscreen adverts during a heatwave.

4) Forecasting

AI is excellent at forecasting future consumer behavior. The accuracy of those forecasts will increase as more data is gathered by the machine learning algorithms. Marketers can then use applications like pandas DataFrame to evaluate the data.

This information aids marketing teams in personalizing client journeys and adjusting for subsequent consumer actions. With the use of predictive marketing, you can also generate more accurate predictions about the goods that are most likely to sell, which is crucial for allocating budget and raising ROI. Future advertisements can be optimized, and individualized experiences can be tested.

5) Language and sentiment 

There are several marketing uses for the fact that machines can now infer our mood from the words we speak. To ascertain if the emotion being expressed is favorable or negative, an AI model can listen to chats, communications, and customer evaluations. Other than that, the technology will largely assist businesses that rely on voice interactions, including cloud-based contact centers or telemarketing firms.

Additionally, it can assist marketers in gauging consumer responses to a promotion, good, or service and utilizing the data to enhance the campaign. For instance, a customized special offer on their preferred product could persuade a hesitant consumer back.

To give more human-like interactions, chatbots are being programmed with more natural language. As a result, they can reply to certain words or phrases by taking specified actions like making recommendations or reducing an issue. Direct product orders can frequently be made using chat.

It is evident that AI can greatly enhance customer experience and marketing customization. AI may assist organizations in developing more meaningful and successful relationships with their consumers by evaluating customer data and offering personalized recommendations, targeted advertising, customized content, and effective customer support.

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