Consumption paradigms have not been exempted from the impact caused by the arrival of Artificial Intelligence in the technological field. People today add another item to their list of requirements to decide whether to buy a product or service: personalization. And this item is getting increasingly prioritized on that list.
When it comes to product or service consumers, having a customized experience is already a standard that brands can't ignore. For consumers, it is very important that messages are adapted to their needs, and to receive recommendations of products and services relevant to their habits and preferences. Personalizing their experience means showing them that they are valued and considered. And if that doesn't happen, most will look for another brand that does.
As for brands, adapting messages and recommendations to the interests of those who buy from them is no longer an optional detail: it is now a necessity. Additionally, offering personalized experiences increases the chances of people spending more money. Therefore, not personalizing the CX means losing the opportunity to increase ROI and to retain more customers.
Many times, the messages that appear to be personalized do not reflect the true interests of the people who consume products and services. Also, there are often discrepancies between what brands think they are doing to personalize an experience and what people actually perceive. A true personalization of experiences implies an investment of human, economic, and time resources that not all brands were capable of affording until now.
So how could this gap between offered and perceived personalization be narrowed at scale?
Thanks to its ability to interpret language, AI could help overcome these challenges in various sectors. For example, several AI tools are already being used in marketing to improve shopping experiences, define targets , and create content. In customer service, AI can be useful to “humanize” chatbot interactions and prevent messages from appearing “robotic”.
As more companies surf the AI wave, and as AI learns more about its consumers, the chances to personalize CX multiply exponentially.
Personalizing an experience is an even bigger challenge if you don't have valuable information. The good news is that there is a safe and reliable way to get that information: looking internally.
First-party data is all the information that companies collect directly about the preferences and behavior of their own customers or users. The data that companies own is very useful because it is of higher quality, easier to manage, and gives people more privacy.
In this case, transparency is key to making personalization successful. Most people are open to sharing information to personalize their shopping experiences, as long as brands respect good privacy practices and do not use third-party data. Otherwise, people lose trust in the brand, and the chances that they will choose the competition increase.
Read the full report to learn more insights on AI and the personalization of shopping experiences.
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