Personalization at Scale: How AI is Making it Possible for Marketers

In the digital age, the concept of one-size-fits-all marketing is swiftly becoming obsolete. Today’s marketers are embracing the power of personalization at scale, leveraging artificial intelligence (AI) to deliver hyper-relevant messages to consumers.

According to a recent survey by Evergage, 98% of marketers agree that personalization helps advance customer relationships, with 70% stating it has a strong impact.

AI is the linchpin in this transition, enabling marketers to analyze vast quantities of data, discern patterns, and make informed predictions about consumer behavior.

This article will delve into how AI is making large-scale personalization not only possible but also increasingly efficient and effective, transforming the way marketers engage with their audiences.

What is personalization?

Personalization is a strategy that involves tailoring products, services, or experiences to align with an individual’s specific preferences, characteristics, or needs. Essentially, it’s about making something ‘personal’ or ‘unique’ to each person.

This could be anything from a customized email message to a tailored product recommendation on an e-commerce site.

The goal of personalization is to provide relevant and targeted information or offerings based on a person’s interests, behaviors, or demographics.

By doing so, businesses aim to enhance engagement, foster customer loyalty, and ultimately meet the unique needs of each individual more effectively.

How Can Marketers Personalize Experiences with AI?

Artificial intelligence has revolutionized the way marketers approach personalization, allowing them to deliver highly targeted and relevant experiences to consumers at scale.

Now, we will explore the various ways in which AI technology is enabling marketers to personalize experiences with precision and efficiency.

An essential aspect of AI-driven personalization is contextual targeting. This involves understanding the context in which a consumer will likely engage with content or an advertisement. Here’s an insightful article on contextual targeting that delves into how AI can identify and leverage the right contexts for maximum impact.

1. Chatbots

Chatbots and virtual assistants use natural language processing (NLP) to interact with users in real-time. They can answer queries, provide product recommendations, and even assist in the purchasing process.

By analyzing user inputs, they can deliver personalized responses and solutions, enhancing the user experience.

But there are several chatbots to choose from. How do you make sure you pick out the best?

1. Define Your Objectives

Determine what you want the chatbot to achieve. Is it for customer support, sales inquiries, or something else? Then, decide on the kind of experience you want to provide. Do you want a simple Q&A bot or a more interactive one that can hold complex conversations?

2. Consider the Integration

Ensure the chatbot solution is compatible with your website platform (e.g., WordPress, Shopify, Wix). Also, check if the chatbot can integrate with your CRM, email marketing platform, or other essential tools you use.

3. Customization and Branding

Ensure the chatbot can be customized to match your brand’s look and feel. Check if you can customize the bot’s responses, the flow of conversation, and other interactive elements.

4. Multilingual Support

If your audience is global, consider a chatbot that supports multiple languages.

5. Scalability

Ensure the chatbot can handle a large number of queries simultaneously, especially if you expect high website traffic.

6. Human Handoff Feature

For complex queries that the bot can’t handle, it’s essential to have a feature that allows a seamless handoff to a human representative.

7. Analytics and Reporting

Opt for chatbots that provide detailed analytics. This can give insights into common user queries, chatbot performance, and areas of improvement.

8. Security and Compliance

Ensure the chatbot provider complies with data protection regulations relevant to your region (e.g., GDPR). Check how user data is stored and if it’s encrypted.

9. Budget and Pricing

Determine your budget and compare it with the pricing models of various chatbot solutions. Some offer monthly subscriptions, while others might charge per interaction.

2. Recommendation Engines

Platforms like Netflix, Amazon, and Spotify use recommendation engines to suggest content or products based on a user’s past behavior.

These engines analyze vast amounts of data, including user preferences, browsing history, and purchase history, to predict and recommend items that the user might be interested in.

Did you know?: Netflix’s top-notch AI ‘recommendation system’ saves the company approximately $1 billion every year (Source).

3. Dynamic Content

AI can automatically generate or modify content based on user behavior or preferences. For instance, email marketing campaigns can be tailored with dynamic content that changes based on the recipient’s past interactions, ensuring that the content is always relevant to the individual.

If you don’t know what tool to use, try these top three choices for email marketing:

1. Mailchimp:

Free Plan: Limited features with up to 2,000 contacts.

Essentials Plan: Starts at $13/month for 500 contacts.

Standard Plan: Starts at $20/month for 500 contacts.

Premium Plan: Starts at $350/month for 10,000 contacts.

2. Drip

Pricing: Starts at $39/month for up to 2,500 email subscribers. The cost increases incrementally based on the number of subscribers.

3. SendPulse

Free Plan: Up to 2,500 subscribers with 15,000 email newsletters per month.

Monthly Subscription: Starts from $9.85/month for 2,500 subscribers, with prices varying based on the number of subscribers.

4. Ad Targeting

AI algorithms can analyze user behavior and segment audiences based on various factors like demographics, interests, and online behavior.

This allows for the creation of highly targeted ad campaigns that resonate with specific audience groups, leading to higher conversion rates.

To gather sufficient data to make your ads more personalized, your AI tool will examine the following factors in connection to your target’s user behavior:

• Browsing History
• Search History
• Purchase Behavior
• Engagement with Ads
• Social Media Behavior
• Device Usage
• Location & Movement Patterns
• App Usage
• Video Consumption
• Email Interaction

For AI-powered ad targeting, try these tools:

1. Smartly.io

Features:

• • • Automated Ad Optimization: Uses AI to adjust bids and budgets to achieve the best results automatically.
    • Predictive Budget Allocation: Allocates budget across campaigns based on predicted performance.
    • Dynamic Creative Optimization: Automatically tests and optimizes ad creatives to ensure the most engaging content is shown to the audience.

2. Adverity

Features:

• • • Data Integration: Connects and harmonizes data from various sources, providing a holistic view of ad performance.
    • Advanced Analytics: Offers insights into campaign performance, helping marketers make data-driven decisions.
    • Automated Reporting: Generates real-time reports, allowing for quick adjustments to ad campaigns.

3. Albert.ai

Features:

• • • Autonomous Media Buying: Uses AI to manage and optimize ad campaigns across channels autonomously to adjust bids and budgets to achieve the best results automatically.
    • Cross-Channel Execution: Ensures consistent messaging and targeting across all digital channels.
    • Real-time Insights: Provides actionable insights based on real-time data, allowing for quick adjustments to improve ad performance.

5. Customer Segmentation

AI can process vast amounts of data to segment customers into specific groups based on behavior, preferences, and demographics. This segmentation allows marketers to tailor campaigns to each group, ensuring that the messaging is relevant and personalized.

However, customer segmentation isn’t always a straightforward process. The following are the most common challenges that need to be addressed:

1. Data Quality and Accuracy:
   Inaccurate or outdated data can lead to incorrect segmentation, which can negatively impact marketing efforts.
2. Data Integration:
   Combining data from multiple sources (e.g., CRM systems, web analytics, social media) can be complex, leading to potential inconsistencies.
3. Data Privacy and Compliance:
   With regulations like GDPR and CCPA, businesses must ensure that they handle customer data with care, obtaining necessary permissions and ensuring data security.
4. Dynamic Customer Behavior:
   Customers’ preferences and behaviors can change over time, requiring continuous updates to segmentation strategies.

A Better Reach – with AI

AI is revolutionizing the way marketers reach and engage with their audiences. From personalized content creation to targeted ad campaigns, AI algorithms can analyze vast amounts of data to provide valuable insights into customer behavior and preferences.

With techniques like recommendation engines, dynamic content generation, ad targeting, and customer segmentation, businesses can enhance their marketing efforts by delivering relevant experiences that tell prospects, “This is all about you!”

Have you experienced the benefits of AI in your marketing efforts? Share your thoughts on how it has impacted your brand’s success.

SEE ALSO: Meta’s Proposed $14 Monthly Ad-Free Instagram Subscription Sparks Privacy Debate In Europe