Application of artificial intelligence – AI in marketing
Personalizing the customer experience: How does AI help businesses tailor offers and ads to individual customer preferences? – AI in marketing.
Ever wondered why, after browsing shoes in one store, ads for similar models appear on other sites you visit? The answer lies in AI technology that filters your data and tailors ads to your preferences. But how exactly does it work and what are the benefits for companies?
In a nutshell
Advanced artificial intelligence algorithms analyze data about user behavior on the site, such as time spent on a specific page, clicks and search history. With this information, companies can tailor their ads to better meet the individual needs of each user.
In today’s digital world, customers leave a trail of data behind them with every step they take. From the products they browse in online stores, to the articles they read, to the social media they consume. Artificial intelligence (AI) plays a key role in analyzing this data to gain a deeper understanding of customer preferences.
Suppose you visit an online store specializing in street fashion. You spent 10 minutes browsing through sports shoes and then added one model to your shopping cart, but ultimately abandoned the purchase.
With AI technology, the store can analyze this behavior. This may mean that you were interested in the product, but the price was too high for you or you had doubts about the style. As a result, the store may send you an email with a special offer for that particular shoe model or show you similar models at a lower price on your next visit.
Another example is a streaming platform, like Netflix. Based on the movies and TV series you’ve watched before, AI algorithms analyze and predict what you might like in the future. If you often watch romantic comedies, the platform will offer similar productions that may appeal to you.
AI not only analyzes your direct interactions with the brand, but also gains insights into your potential interests and preferences. This gives companies the opportunity to deliver a more personalized and targeted offer to you, which in turn increases the chances of a successful conversion.
Email personalization is more than “Hello, [Your name] ” . AI can analyze which emails were opened, which links were clicked and which products the user paid attention to. As a result, you get content tailored to your interests.
Email marketing is one of the most effective tools for a brand to communicate with its customers. With artificial intelligence, this approach can become even more effective and customized.
Advanced AI algorithms are able to analyze the behavior of users who receive emails from companies. This includes not only information about whether the email was opened, but also which links in the email were clicked, how long the user spent reading the email or on which devices the email was read.
An example of the use of AI in email marketing is the automatic segmentation of the subscriber base.
If a company sells clothing, the algorithm may notice that a certain group of customers often clicks on links to sportswear, while another group is more interested in formal fashion. This allows the company to create more personalized email campaigns for both groups.
Another example is optimizing the timing of emails. AI can analyze what time of day a user is most likely to open emails from a particular brand, and then adjust the timing of the mailing to maximize the chances of opening the message.
Don’t forget to create email content. Based on purchase history and interactions with previous emails, AI can suggest products or offers that are most suitable for a particular customer. If someone frequently buys kitchen accessories, the next marketing email might include a special offer for a blender or coffee.
In summary, AI in email marketing enables companies to reach their customers more effectively by delivering content that is more tailored to their individual needs and interests.
Platforms such as Facebook and Instagram use AI to display ads to users that are most relevant to them. This is based on analysis of their behavior, interests and interactions on the platform.
Social media ads have become one of the main channels for brands to communicate with their target audience. Artificial intelligence plays a key role in optimizing these ads to make them more effective and personalized.
One of the key aspects where AI helps with advertising on social platforms is targeting.
The algorithms are able to analyze data about users, such as their interests, interactions, search history and the content they share or comment on. This allows companies to target their ads to an exact audience.
One example is a company that sells organic care products. If the AI algorithm notices that a certain user regularly engages in posts about environmentalism, conservation or veganism, it can suggest that an ad for organic cosmetics appear in that user’s feed.
Another important application of AI in social advertising is A/B testing, or testing different versions of the same ad.
This allows companies to find out which version of advertising is most effective and generates the most interest. AI algorithms can automatically adjust ad elements such as images, headlines or content to find the most optimal combination.
Finally, it is worth mentioning dynamic retargeting. If a user visits a product page but does not make a purchase, AI can “follow” that user on social media and display ads for that exact product or similar products, reminding them of the unfinished purchase.
Today’s social ads are powered by artificial intelligence, allowing brands to reach their target audience more precisely and efficiently. That’s why, among other things, AI in business marketing is integral today.
Personalization through AI not only improves customer satisfaction, but also improves ROI for businesses. Customizing content leads to higher conversion and customer loyalty. With AI, companies are able to better understand their customers and provide them with exactly what they need at the right time. Here are the main benefits of using AI for personalization and some practical examples.
- Increasing conversions: Personalization leads to better effectiveness of ads and offers, which in turn results in higher conversion rates. Example: an online store that uses AI to analyze a customer’s search history can offer discounts on products that the customer browsed but did not purchase.
- Greater customer engagement: Personalized content and offers are more appealing to customers, leading to longer interactions with the brand. Example: a music service that uses AI to analyze a user’s music preferences, resulting in personalized playlists.
- Building loyalty: Providing personalized experiences makes customers feel valued, which leads to building stronger relationships with the brand. Case in point: a coffee shop’s loyalty program that offers personalized promotions on customers’ favorite drinks.
- More efficient use of marketing budget: With more accurate targeting, fewer resources are wasted on ineffective ads. Example: an ad campaign on a social media platform that uses AI to display ads only to users who are most likely to make a purchase.
- Process automation: AI allows content and offers to be automatically tailored to individual users without manual intervention. Example: an online store that automatically customizes product pages to suit individual customer preferences.
Using AI for personalization not only benefits companies, but also improves the user experience by making it more personalized and customized.
The next time you see an ad tailored exactly to your needs, think about the technology behind it. AI is transforming the way companies communicate with their customers, and for companies that want to be at the forefront of innovation, investing in AI is a must. You already know How does AI help tailor ads to customer preferences?
In the digital age, where competition for customer attention is fiercer than ever, personalization has become not just an add-on, but a necessity for companies looking to succeed.
Artificial intelligence, with its ability to analyze and adapt, allows companies to meet customers’ expectations by providing them with products and services tailored to their individual needs and preferences.
As AI continues to evolve, personalization capabilities will become even more advanced, giving companies unprecedented opportunities to build deeper and more valuable relationships with customers. Today’s consumer expects personalization, and companies that are able to meet these expectations will not only achieve financial benefits, but also win the loyalty of their target audience.
That’s why it’s important for companies, regardless of industry or size, to consider using AI in running their business and in their personalization strategy. Investing in this technology today can bring significant benefits tomorrow, strengthening a company’s position in the market.
Our team of experienced specialists, who specialize in comprehensive branding, will provide solutions tailored to the needs of modern entrepreneurs. Collaborating with us is an investment in a lasting and recognizable identity for your business in a crowded market.
Want to learn more? Click here and discover our comprehensive approach to branding!
