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5 Benefits of AI Personalization in Marketing

5 Benefits of AI Personalization in Marketing
Written by Shikha Mehta

When you search for a product on an e-commerce website, do you receive suggestions related to recent searches? This is nothing but AI personalization marketing.

What do you understand by AI personalization marketing?

Let’s break these terms into 3 parts – AI, which stands for artificial intelligence, personalization and marketing.

Artificial intelligence is the technology with which a machine or software can think, store & interpret information like a human brain. With the help of computer programming, search engines, websites, robots and many other technological devices have achieved this.

One major application of AI is personalization, which refers to catering to the personal needs and desires of an individual. Hence, the key function of AI in a software or website is personalization of services.

Now, why would a website cater to your individual needs? The answer is marketing. Personalization is a way of connecting to the customer. When you go to a store, the salesman caters to your personal preferences and needs and suggests you the right product. Now, when you shop online, AI does the job of a salesman.

Hence, AI based personalization marketing is a form of marketing that connects to the individual needs and preferences of a consumer with the help of AI.

How is AI Personalization Used for Marketing?

For that, we first need to understand how AI performs the task of personalization. Let us first consider an example that involves a human brain instead of a machine:

You go to a boutique and ask the salesman there to show you formal shirts of your size, light colours and have a slim fit. Since the salesman can see you, he knows what to show you and based on his stock shows you exactly what you want.

This is a personalized service because you are not seeing anything you did not ask for.

Now, this works a little differently when you got to an online store. Let’s consider you’re looking for formals on Amazon.

You type “formal shirts for men” on the search bar. On the top of the page, there is an option where you can filter for the following:

  • Size
  • Colour
  • Brand
  • Collar type
  • Material used
  • Customer reviews
  • Price range

In a very quick way, you tell them what you exactly want and you receive a much larger variety of options.

Now, whether you buy a shirt from here or not, the next time you ever open Amazon, you’ll get a shortcut for looking for shirts. You’ll even get ads of the types of shirts you have been looking at.

So, the AI of the website or app as well as the search engine has managed to store the information regarding your current buying interests. Thus, when you open the internet the next time, it ensures that you get shortcuts to the same links again and again.

Here are 3 ways how marketing is done using AI:

Method 1  

Providing filters and sorting options by an e-commerce website so that you can see exactly what you want.

Method 2  

Getting ads and shortcuts to the things you’ve been searching for, both by the brand as well as the search engine.

For one formal shirt that you looked for online, you can get ads not just on that particular website, but also on Google, Facebook, Instagram and other random websites which have ad banners. This is the level of personalization that AI can provide for targeting consumers.

Method 3  

On the basis of a query coming by multiple consumers, providing personalized content in the form of FAQs.

How Does AI Based Personalization Enhance Marketing?

Did you know that companies who use AI based personalization for marketing have at least 10% more sales than the ones who don’t?

The reason behind this is that 73% consumers in the market buy products and services personalized according to their needs and preferences.

Here’s how using AI for personalization helps in improving marketing:

1. Enables Targeting of Consumers on the Basis of Demographics and Personal Interests

Through artificial intelligence, one can target the exact audience he or she wants. If you’re a brand selling makeup products, your target audience would be women between the age of 16-40, living in the regions where you supply and are actually looking for your products.

You can set-up these demographics and personal interests while publishing your ad. With the help of AI, only those consumers will get your ad who are willing to buy your product.

2. Helps in Re-targeting Customers

When you have been searching on a topic or a product for long, you’ll get its recommendations the next time you open the web. You might observe that when you tap on the Google Search bar, you’ll find a list of your previous searches coming below as recommendations. The same is also applied by e-commerce websites.

3. Enables You to Provide Customized Messages

Messages are provided to customers in the form of emails, SMS and sometimes even WhatsApp. We all get promotional emails from the banks we have our accounts with, websites where we shop often or other sites we might have subscribed to.

The entire process of sending the right mail or message to the right customer is automatic when we use AI. You need to program the system-generated mail to send certain messages to frequent buyers, some for subscribers and some for potential customers.

4. Can Use Innovative Methods for Providing Personalized Services

Many sites use some innovative ways of creating personal relations with their potential clients. On service-based websites, you might observe that when you’re looking for something, you’re asked certain multiple-choice questions.

There are some brands who make personalized products even for their customers. They create surveys which are processed through AI and based on the results, the customer is given a delivery. It is a very efficient way of building a wider customer base.

5. AI Has taken Content Marketing to a Whole New Level

Used by all search engines and social networks, AI has enabled you to provide readers with content of their exact interest. When you open your Facebook feed, what you get to see will match the pages you have liked or searched.

The same applies to the homepage of YouTube, the search bar of Google, any news app that you follow or for that matter any website that you re-visit.

Applications of Personalization Using AI

When it comes to marketing, almost every brand has been looking for ways of enabling AI based personalization. Apart from that, AI based personalization is also used for website creation and hyper personalization.

Brands have been using AI personalization marketing for boosting sales, searching for a wider audience, retargeting an audience or existing customers, building customer relations and retaining customers.

Haven’t you been experiencing personalized services through the internet almost everyday?

About the author

Shikha Mehta

I discovered my talent in writing while I was in high school. Since then, I discovered the joy of sharing your knowledge with people around you. This is the reason why I love making my contributions to Insights of Technology. Being a certified content writer, I have been writing on several topics, science & technology being one of my favorites.

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