We may be living in a digital age, but the desire for personalized interactions has hardly disappeared. In fact, we're especially keen on getting customized interactions from brands.
McKinsey documented this phenomenon several years ago. The company's research revealed that 71% of consumers want personalized attention from companies. Once you have it, you are more likely to increase your future purchases as well as your spending. According to findings from Twilio's State of Personalization Report 2023, a single personalized experience will move the “repurchase” needle for 56% of shoppers.
For marketers, consumer trends toward personalization present both opportunities and challenges. On the other hand, it's clear that delivering customized engagement pays off. However, finding ways to personalize efficiently and effectively can be difficult. This is where AI solutions come in handy.
AI tools such as software, systems, mobile apps, and integrations allow marketing teams to connect with people in ways never before possible. Leveraging AI in supportive functions can help ensure that your marketing approach and communications feel authentic while not costing you a fortune.
Top AI applications for marketing
Undoubtedly, AI has many applications in the marketing realm to drive personalization. But five AI applications are becoming especially influential as brands seek to show consumers that they are seen, heard, and valued.
1. Ability to predict the future
No one invented the crystal ball, but AI tools can come a lot closer to seeing the future. AI tools work at lightning speeds, allowing you to identify hidden trends in vast amounts of data in seconds. Once those trends are identified, they can be used to provide a customized experience.
For example, many companies are leveraging AI to more reliably reach their target audiences without relying on cookies or limited “lookalike” audiences. As Nativo explains, AI can use first-party data to accurately determine when a customer is likely to take a certain action, such as reordering a product. With this foreknowledge, marketers can send messages (such as a “time to buy again” email notification) when consumer demand is likely to be highest.
The ability to know your consumer base better allows you to anticipate pain points and provide intuitive solutions. As a result, your customers will feel that you are aligned with their unique wants and needs.
2. Ability to personalize at scale
Not so long ago, personalization was difficult to master. It was especially difficult when the company grew. Today, AI enables massive personalization for organizations of all sizes.
Amazon is a clear use case for personalization at scale. Despite having an estimated 310 million customers, Amazon remains steadfast in its commitment to customizing messaging. This is all due to its reliance on AI systems. This has had such an effect on customer loyalty that during Amazon Prime Day 2020, 60% of Prime members only purchased from Amazon, despite there being more cost-effective alternatives.
You can personalize at scale, so even if you end up having thousands (or millions) of customers, you don't have to worry about losing that one-on-one touch. This allows your company to remain competitive and grow its loyal customer base, no matter how big it gets.
3. Ability to automate interactions
Among all AI marketing applications, there is no denying that automation has revolutionized communication. Automation eliminates the need for employees to be “on call” for him 24/7 and ensures that your brand is always in the spotlight. It also ensures that your customers don't feel ignored or “ghosted” by your brand.
Almost any repetitive process can be automated. For example, automating your lead generation machine can increase the number of leads by 451%. Alternatively, you can create automated paths to more effectively move consumers through your sales funnel.
Worried that automation sounds like robots? Many AI innovations leverage natural language processing (NLP) and machine learning. The result is the ability to deploy automatic responses that are rational, intuitive, and above all human.
4. The ability to conduct smarter (and faster) research
AI can analyze both structured and unstructured data faster than anyone else. By running data points through AI-powered systems, marketers can conduct smarter research. After all, AI takes into account large amounts of data.
There are many ways to leverage AI-backed research findings, including improving social media listening. AI scrapes popular social media sites in real time to find mentions of your company. This will let you know first if anything negative is being said. If that happens, you can swoop in. The sooner you respond to online concerns about your brand, the more likely you are to get the situation under control and put out any flare-ups.
A further advantage of AI's ability to perform research is that research can be performed periodically in the background. You and your team don't have to babysit the process. This means you can spend more time considering other ways to personalize the way you interact with customers.
5. Ability to support customer self-help efforts
Another strategic way to bring personalization to your consumer base through AI is through self-service options. Many consumers with issues want to resolve the issue themselves before contacting your company. Therefore, consider incorporating AI solutions such as chatbots.
Chatbots shouldn't replace customer service agents, but they can serve as excellent first-line assistants. If you invest in a chatbot, choose one that is programmed to make interactions seem more human rather than mechanical. Choosing someone trained in NLP may be a good choice.
As Landbot outlines, NLP is about more than just choosing the right words for a session. High-quality chatbots have built-in capabilities to perform sentiment analysis, allowing them to “read the room.” That way, your chatbot's responses will always be as personal as possible.
At first, achieving personalization can seem like a daunting task, especially if you're working with a small team and a minimal budget. But with existing and emerging AI technologies, you can give your customers the personalized attention they want and give your brand the success it deserves.
