Personalization marketing and AI (Artificial Intelligence) are not only digital marketing trends but the future of business. A customized user experience is what customers like and want. These trends will build a long-term relationship with your customers and increase loyalty.
User experience needs to correlate to customer unique interests through relevant content or offers. Stats show that 58% of consumers are more likely to use a business or service if they are given a personalized experience.
AI and Personalization: The Future of Business
People want to feel special and appreciated. Psychologically, people are more likely to engage with something they find relevant to them. Successful marketing is using more psychological tips than you think.
Here are some reasons why personalization marketing and AI are the future of business.
- Targeted Messages
You need to create targeted messages. Product recommendations should be made based on viewed items, or a content offer should relate to a page that was viewed by your visitor or customer.
Think and use what you are learning about this person through each action they take and how you can continue to provide them with content that is interesting to them. Consider what interests people most.
- Behavioral Data
Looking at behavioral data is extremely important because it allows you to learn about your visitors and then you can create a customized experience. 70% of a group of senior marketing executives from both the U.S. and Europe said that they used behavior-based data to develop content.
You should measure engagement to see if people find your message or content relevant to them. Personalization will be based on both explicit and implicit data. Make sure that you are asking for the right information in your forms.
People many times are not willing to share their details with you. So you need to know what you ask for and when. The more information you gather about visitors’ interests and needs, the better you can provide a personalized experience.
Once you have enough information about your contacts and visitors, you can segment them into groups and you can nurture them. Automating the process will save you time and money.
Sending relevant and interesting content to the right group of people will gain their trust and will increase sales.
Important Tip: Make sure that you are using current data. Look at what people have been viewing or buying recently. Interests and needs change frequently.
- Personalization and Email marketing
Stats show that personalized calls-to-action generates a 43% higher conversion rate than calls-to-action that are the same for everyone. Also, personalization email marketing will lead to a 152% higher open rate compared with other types of email marketing.
- AI and Personalization
AI will improve personalization and sales with customer experience and marketing. Businesses that don’t incorporate AI tactics to improve their personalization marketing strategy will lose customers and sales. (Profits).
a) Create Customer Personas
You can begin with initial data (demographics and behavioral data) to identify and understand your customers. You can collect this data by asking customers directly. So you know details about who they are and what they need. Then using AI technology (machine learning, data mining, and natural language processing) you can create a new personalization marketing strategy.
b) Content Creation
It’s impossible to create personalized emails for every customer but there is an alternative way. You can use AI classification algorithms to capture a large number of data points describing a customer’s behavior (such as emails that the customer opened, past purchases, etc). Then you can select the best content for every customer. (Personalization Content)
c) Chatbots
AI-powered personalization chatbots can improve communication with customers and help customers with purchasing products while enabling them to use self-service for their online needs.
d) The Effect of AI Algorithms
Personalization has moved beyond segmentation to the use of algorithms. Brands are using AI through recommender systems to provide customers with more personalized experiences.
Many big brands are using AI to improve purchase recommendations (known as content filtering). Based on customer preferences, the algorithms can be designed to use those preferences and customer behaviors to recommend products, cross-sell items and increase sales.
Businesses can also use AI to share targeted content in real-time, as well as to determine when to send follow-up offers after the customer is finished shopping.
Personalization is the new type of marketing. But in most cases require a strong data set and AI technology to get excellent results, sales, and understanding of the customers.