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Customers have become more critical, especially now that personalization is increasingly taking place on an individual level. Think of the suggestions of a streaming service based on what someone has watched or listened to last time. Customers expect to be approached like this by every company now. Management consulting firm McKinsey & Company has already stated that 76% of consumers are more likely to make a purchase from a company that uses personalization. Additionally, research by Forbes shows that three-quarters of consumers become irritated when the customer approach does not match their needs, risking them switching to a competitor.
Segmentation is Not Enough
These figures underline the importance of true one-on-one conversations, for which a customer approach with segmentation alone is not sufficient. Segmentation divides the total target audience into multiple customer groups, each with their own customer journey. Although this makes the approach somewhat more personal, it does not provide true one-on-one personalization. Moreover, a company that only applies segmentation still has to manually build and adjust marketing flows where necessary. Doing that for each individual consumer would require thousands of marketers, which is obviously not an option. So, the question is: how do you achieve the necessary hyperpersonalization?”
Boost Your Business With AI
The answer lies in the possibilities of artificial intelligence (AI). The technology ensures that the consumer always receives the right message, through every channel, with personalized touchpoints in newsletters, online shop layouts, or shopping carts. With AI, manually setting up customer segments and flows becomes a thing of the past, as the work is automated with AI. The smart algorithms on which the technology is based are also self-learning, contributing more and more to a personalized customer approach. This helps strengthen the feeling among customers that the company understands them.
The AI decisioning engine for your business helps with the interpretation of customer data, regardless of the size of the customer base. AI is scalable, growing with the company and offering personalization for every customer, not only now but also in the future. See the technology as the new engine for your business, which can be started very quickly, as shown in the Consuminded report on personalization trends for 2023. Not only has the number of AI tools grown significantly in recent times, but they are also easy to use, making the technology both effective and accessible. And finally, it’s good to know that AI is an additional layer on top of your existing IT landscape, so there’s no need to start from scratch.
*This blog is initially created by Building Blocks, acquired by CM.com in 2022.
