Enhancing customer experiences: Generative AI in personalisation and engagement

AI-powered algorithms can analyse customer data to understand preferences along with ongoing trends

AI can play a role in optimising marketing campaigns
AI can play a role in optimising marketing campaigns

By Saurabh Dutta

What is Personalisation

Personalisation is about tailoring a product, service, or experience to an individual user’s unique needs and preferences. This can be done in a variety of ways, such as suggesting products based on purchases over a period of time, customising website design and content according to user behavior, or using AI for services a they are designed for everyone.

Personalised marketing enables you to deliver focused messages, leading to:

  • Increased engagement
  • Enhanced conversion rates
  • Strengthened customer relationships
71%of consumers expect personalised interactions from companies76%of consumers express frustration when this expectation is not met

Source: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying

How Artificial Intelligence (AI) is playing a crucial role in revolutionising advanced personalisation strategies

Customer Segmentation

For humans it’s very difficult to analyse customer data to identifying patterns and similarities among different sets of customers. But, AI can employ numerous machine learning algorithms to analyse these patterns based on demographics, behaviors, or preferences etc. very efficiently. Once customers are segmented, marketers can create targeted campaigns and personalised marketing messages to address the unique needs and interests of each segment.

Personalized Messaging and Content

One thing that marketers always struggle with is what kind of messaging would stick to their potential customers. AI-powered algorithms can analyse customer data to understand preferences along with ongoing trends. Content generation algorithms use this information to create personalised messages, product descriptions, or articles. Marketers can scale their content production while ensuring that each piece is tailored to resonate with individual audience segments.

Marketing Campaigns Optimisation

AI can play a crucial role in optimising all types of marketing campaigns. They can help in processing and analysing customer interactions and the outcomes of previous campaigns to determine optimisations in future campaigns. 

For example, in an email campaigns AI can help in determining send times, content types, and email subject lines that would give the maximum results. Marketers can additionally personalise email content based on user behavior, delivering targeted messages that align with the recipient’s interests. This leads to improved click-through rates, open rates, and overall email campaign effectiveness.

Recommendation Engines

For every business the goal is to generate maximum revenue. This is only possible when you understand and personalise the customer’s experience. Recommendation plays a crucial role here and AI-powered recommendation engines can elevate the experience to the next level. They can analyse user behavior, such as purchase history and preferences and these insights can be used to provide personalised product recommendations on websites, in emails, or within apps.

This enhances the user experience and increases the likelihood of customers discovering and purchasing relevant products.

Personalised Advertising

By leveraging AI in personalised advertising, businesses can create more meaningful connections with their audience. It can discover characteristics and behaviors that can correlate with ad engagement. This information to personalise ad targeting, ensuring that advertisements are shown to users who are likely to be interested in the products or services.

This improves the overall performance of advertising campaigns and maximises return on investment.

Customer Journey Optimisation

And last but not the least, is by performing data analysis AI algorithms can assess customer interactions across various touchpoints, identifying patterns and preferences.

These insights present an opportunity to businesses to again personalize and optimize each stage of the customer journey – from an initial awareness to conversion and post-purchase engagement. Another help that is of great help is AI powered Chatbots that support customers in natural language. They provide real-time assistance, guiding customers through their journey and addressing queries.

These tactics ensures a seamless and personalised experience, enhancing customer satisfaction and loyalty.

AI tools for personalisation and engagement

While there are multiple tools available in the market that focus just on the marketing campaigns, but to generate the full value from the data, organisations should focus on an enterprise-wide solution. A typical offering should cover the entire data to outcomes journey of:

  1. Ability to connecting to various sources
  2. Processing the data to get it ready for consumption
  3. Telling data stories through a comprehensive set of visualisations
  4. Creating a business user facing outcomes app

This holistic approach gives organisations the flexibility to create tailored applications and an edge over competition. And the result of these applications crafts to meet the unique preferences and behaviors of every individual.

As AI continues to refine its capabilities, engagement using personalisation is taking the front seat. Moving from one-size-fits-all approaches to a more nuanced, data-driven, and customer-centric model.  It has the transformative power to redefine how businesses connect with their audiences, creating experiences that are not just tailored but truly memorable.

The author is senior solutions architect, Gathr Data Inc

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This article was first uploaded on February eighteen, twenty twenty-four, at ten minutes past six in the evening.

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