Let’s face it – the modern consumer has become smarter. Thanks to the wealth of knowledge they can find on the internet, they can get information about a certain company, product, or service before they decide. Because of this knowledge, the modern consumer has also become more demanding, requiring businesses to deliver a more personalized experience.
Attracting the interest of modern-day consumers has become more and more challenging. They prefer a business that creates products and services that are tailored to their needs. Providing individualized experience to thousands or even millions of online consumers can be overwhelming, but not impossible.
How Businesses Use AI to Create a Personalized Customer Experience
Businesses such as Netflix, Amazon, and Spotify have been providing the best personalized experience to their consumers using AI or Artificial Intelligence. They use recommendation engines. Customers do not have to search for what they want. Instead, recommendations are sent to them, making them feel special.
These recommendations that large businesses give are based on every client’s purchase history. The trailers that Netflix offers its subscribers are on genres that they usually watch. Consumers who go for Sci-Fi movies will get trailers of this type from Netflix.
By tracking their customers’ behavior, Netflix is able to provide them with products that they want. They do not have to browse for movies to watch. Instead, they get recommendations, which correspond to their preferences.
These companies have invested in gathering customer data that the AI can process and analyze to provide individualized experiences to clients. Even if you are a company not as big as Netflix, you can learn from them regarding the use of AI to give your customers a more personalized customer journey.
Start Small with Your Personalization Strategy
Using AI or machine learning for a personalization strategy will require tons and tons of data. It’s okay if you only have little information about your clients in the beginning. Start with what you have now and add later when you have gathered more data. There are five steps to accomplish this.
Step #1. Keep a record of the client’s behavior across channels.
Nowadays, businesses can purchase customer tracking software to do this. The program will give an analysis of the buying habits of people that visit your website or make use of your app. You will know how many people are just making a random visit and how many converts into sales.
Among the site visitors, who will most likely make a purchase? You can target this specific group when sending messages in real time, making offers, providing tips and updates, and conducting surveys to find out what else they want.
Step #2. Merge all data gathered with pertinent customer data with other systems.
Getting information from varied sources and systems will give an unbiased assessment of the customers. This broad understanding of how and why they act the way they do will serve as the framework for each individualized experience to offer.
Step #3. Automatically interpret the data to determine affinities and intent.
AI can analyze and interpret large data instantly. The information will help find out customer affinities and intent. A customer’s affinity profile reveals which products he will most likely buy. However, a customer’s intent is something he buys because he needs it. A marketer can offer the customer items that meet his preferences and needs.
Step #4. Place everything in a central storage system.
Once a customer’s profile is established, products that meet his preferences and needs are gathered in a single place. Real-time messages and offers are sent to the customer from this place, which is based on his profile.
Step #5. Act on all data in real time.
Marketers must act on all data gathered immediately. When a consumer shows preference or intent to buy a particular product, he expects an immediate response. This means that he finds what he wants to buy right away. If he prefers a specific color and style, his search results must show these items.
Artificial Intelligence will be more and more significant and vital in individualizing consumer experiences. As a business, however, you must gather all relevant information about each customer for AI to process, analyze, and interpret.