Over 80% of customers now prefer to buy from brands that provide personalized experiences, Forbes reports. With the help of AI tools, it’s now easy to deliver tailored interactions that keep your customers coming back for more. Take predictive analysis, for example. It can spot what customers need before they even ask, and serve up relevant information that makes their purchasing decision even easier. Additionally, Generative AI can also create hyper-personalized product recommendations based on highly-specific customer segments — the more on-target the suggestion, the more likely the sale. As long as you handle customer data with care, AI can help you create memorable experiences that win over customers and encourage them to stick with you for the long haul.
Predicting customer needs
Predictive analysis uses AI to predict customer needs and address potential issues before they become problems — a capability that 62% of customers now look for in brands. As an example, let’s say a customer adds some products to their cart, but doesn’t check them out. A predictive analysis tool can track what this customer does on your website, and then it will automatically send them a personalized email to remind them to complete their purchase. It might offer a 10% off discount code as an incentive, or an encouraging message that highlights secure payment options and free and easy returns.
Predictive analysis can also predict what information customers need to make a purchase decision. For instance, maybe you run a home appliance e-commerce store. A customer has recently browsed your coffee grinders and viewed a blog post on how to choose the perfect coffee maker, but hasn’t yet made a purchase. The AI tool will pick up on this behavior, and realize the customer probably needs more information before they’re ready to buy. This gives you the opportunity to send them an email that notes they’re interest in coffee makers, and give them more useful details on the models you sell.
Protect customer data
Although AI is a powerful tool that can transform consumer experiences, customer happiness also hinges on good data privacy. In fact, 63% of consumers are concerned about the risk of data breaches exposing personal data they may give to AI. So, with this in mind, you need to verify your AI tools protect customer data. Make an effort to read up on what data the AI system collects and how it’s used and stored. The tools should comply with legislation like the General Data Protection Regulation and the California Consumer Privacy Act. Under both laws, consumers now have “the right to be forgotten”. So, if a customer asks you to delete their data to prevent its use for the analysis of algorithms, you need to do so immediately.
Hyper-personalized product recommendations
Generative AI (GenAI) can also provide customers with hyper-personalized product recommendations — a move that can potentially boost sales by 40%, McKinsey reveals. Hyper-personalized recs are a major step forward for customer experience as, previously, many brands simply lacked the analytical tools necessary to target customers beyond basic demographics (usually based on age, location, or gender). But now, Genai can create smaller, more distinct customer micro-segments that help you better cater to individual needs. It specifically analyzes large volumes of customer data from purchase history and browsing activity to social media interactions. With this data, GenAI spots trends in consumer behavior and characteristics, which it uses to create micro-segments.
You can then train the GenAI tool on these microsegments, along with your product catalog and brand personality. This allows it to generate hyper-personalized recommendations that really speak to each customer. In the case of a marketing email, for instance, GenAI can devise one based on a customer’s unique location, purchase history, and average spending amounts. For example: “Hello, Eric! Did you know our waterproof wool trench coat is now 10% off? It’s the perfect match for your recent wool scarf purchase, and together this duo will keep you warm throughout the chilly Michigan winter”.
AI tools can help you deliver the personalized experiences customers now expect from brands. Whether you want to anticipate customer needs or provide hyper-personalized recommendations, AI makes it easy to tailor consumer interactions and build strong, more loyal relationships with your customer base.