AI and personalization are the buzzwords today, but do they help? The answer is a qualified yes and I’ll explain why.
A lot of stores today use personalization and by that I mean tools that can customize the experience for the end-user. The store owner today is spoilt for choice — there is a personalization tool available at every price point today. On top of this, some tools provide widgets that you can add to your pages. The pricing for these could be on a per month basis, on a page view or even on successful sales.
We have seen customers having mixed results with all of them. Having said that, I don’t think store owners have a choice of not using a personalization tool. This is because as the store grows the need to offer experiences which, if not wholly accurate, at least are reasonably personalized.
A critical and most challenging step towards personalization is to collect essential data points that define the customer’s behavior and buyer journey.
Building a customer persona is the most important step in targeting campaigns and ads to acquire new customers.
Using a personalization tool is also important to make sure that you understand who your returning customers are, what they buy, what products they are interested in, as well as the channels by which they would like to be contacted.
By integrating with your email marketing, you are also making sure that your approach to talking to customers is holistic.
Here comes the next question. How do you leverage modern tools to maximize your ROI from Personalization?
Customer segmentation based on devices, regions, demographics, etc. will be the first step but is not enough to achieve 1:1 personalization. This is still not enough, what we need is more understanding of customers across various dimensions like needs, interests, habits, and preferences [more]
Gathering all these data requires qualified resources, time and budget. We need to use tools that will eliminate the manual effort involved and create a consistent and reliable customer engagement opportunity.
Advanced technologies use AI/ML to slice and dice the data and generate readily actionable personalization recommendations that can be automated by marketers to send personalized messages to individual customers. The key is to invest in the right tool that saves time to extract, enrich and automate your retargeting process.