What Is AI Personalization?
AI personalized gathers information about a customer’s historical behavioral patterns, including social media interactions, browsing and purchase histories, and demographics, to determine their unique requirements and preferences. With this knowledge, the system can project what they would find interesting and provide real-time product recommendations.
The “Customers also bought” area on e-commerce websites, which entices users to add more things to their cart, is an example of AI personalization in action. Brands become it growing in importance as a result of its ability to scale up customization of interactions, which increases revenue, customer engagement, and conversion rates.
What Is Hyper-Personalization?
With hyper-personalization, a business may interact one-on-one with its clients by taking AI customer experience to the next level. From a marketing standpoint, each message, piece of content, offer, and product suggestion is tailored specifically for a person.
Hyper-personalization boosts revenue for rapidly expanding companies by 40% compared to slower-growing rivals, citing McKinsey research. This is because they are utilizing the knowledge gleaned from their data to determine the best way to satisfy a certain client requirement at a particular time.
How AI Can Improve Customer Experience
Five to eight times the return on marketing spend is achieved by the majority of businesses (82%) who employ AI personalization to enhance the consumer experience. This is a wise decision because it helps businesses recognize the little things that customers find important and understand, and then leverage those details to boost sales and lower attrition.