Published on May 7th, 2019 | by Emergent Enterprise0
5 Ways to Personalize Your Customer Experience With AI
We are now having regular interactions with machine learning in retail and Shannon Hamilton at readwrite.com shares several ways all of us are being served personalized customer experiences. But, are we receiving recommendations that are fueled by our preferences and behavior or by the products who have spent the most ad dollars for the experience? A combination of both.
When it comes to building customer relationships, nothing comes close to personalization. Eight in 10 consumers are more likely to purchase from brands that offer personalized experiences, Epsilon researchshows. No wonder personalization is a priority for so many of today’s organizations.
To make personalization possible, however, companies have to sift through stacks of data. Uber alone has collected over 100 petabytes of customer data — far too much for human analysts to handle in a timely manner. That’s why it and others have turned to AI technologies like machine learning.
By using machines to analyze how, when, and what customers shop for, companies can predict on a person-by-person basis what customers want. Here’s how:
- Individualize digital experiences. Until the rising of ML, A/B testing was a manual process that took hours to deliver actual insights. AI models, however, can use online behavioral signals to determine the best experience to serve up in real time. And because AI systems become smarter as more data is fed into them, they actually get better at predicting outcomes over time.
Financial services company HSBC, for example, recently tested AI-driven dynamic content against static content on its mobile app’s home page. The personalized results drastically outperformed their static peers in terms of click-through rates to product pages.
- Optimize emails.
We live in an attention economy. Like never before, marketers are vying for consumers’ mental space. Nowhere is that more evident than in email inboxes. The average office worker receives 121 emails per day, each of which is carefully crafted for opens and click throughs.
To compete, marketers are turning to AI to analyze email engagement data, predict open rates, and minimize churn. One brand that hit it out of the park with personalized emails is Virgin Holidays. Just by individualizing its messaging, the travel company increased its email opens by 70% and clicks by 65%. As a result, Virgin Holidays raised its revenue by 49%, or about £17.3 million.