Leveraging Personalization in the Age of AI, ML, AR and VR to Optimize Holiday Sales
In today’s digital age, personalization has evolved not only as an incredibly powerful tool for businesses looking to stand out amongst consumers inundated with information and choices, but also as a necessity for businesses looking to thrive in the digital space.
Building meaningful connections with customers, delivering exceptional customer experiences, and increasing loyalty have become the cornerstone for modern-day marketing strategies. And this type of personalization has shown to have a tremendous positive impact on sales. By investing in personalization companies can forge a deeper connection with their customers which in return positions them for long-term success in an increasingly competitive marketplace.
Understanding Personalization in The Economies of Scale: Definitions & Examples
Personalization is essentially the art of a business taking a fully personalized approach to the customer. What does that mean exactly? Well in a nutshell it’s the company’s ability to tailorize interactions, offerings, content, website experiences, product recommendations, etc. to specific customer needs, behaviors, and preferences. Some examples of personalization include:
- Dynamic Personalized Website Content & Personalized Product Recommendations
- Personalized Emails & Personalized Content
- Personalized and segmented marketing campaigns
- Loyalty Programs, Geolocation Based Offers & Customized Pricing
In today’s digital sales landscape where competition is fierce, and customers have high expectations, personalization is not just a ‘nice to have’ but a ‘must have’ for organizations to remain competitive and optimize their sales performance. It leads to some significant positive attributes and outcomes, such as Enhanced Customer Experience, Increased Brand Loyalty, and Improved Conversion Rates.
In fact, Bain & Co. did a study on ‘The Economics of E Loyalty’ and found that just by increasing customer retention 5% it would boost the company’s profits by 25% to 95%. (*Source: Bain & Co.)
The Role of AI & Analytics in Driving Personalization in Digital Sales:
So what are the driving forces behind personalization? In digital sales, Artificial Intelligence and Generative AI, data collection, analysis, and automation are all driving this forward and what further comes into play is artificial intelligence. AI’s machine learning algorithms learn from user behaviors, interests, and preferences to deliver highly personalized content. Ai’s machine learning algorithms also further enable AR and VR applications to deliver highly personalized experiences which adapt to the users’ preferences. Data Analytics, Artificial Intelligence, and Machine learning these technologies all combined allow businesses to gather, analyze, and apply vast amounts of data from various sources such as browsing history, past purchases, social media activity, etc. in order to build out highly personalized content or product offers to their customers. And we see many companies incorporate this in their daily online sales experiences.
Take the Beauty Industry and Beauty Giant Sephora for example who already back in 2017 launched their “Sephora Virtual Artist App*’. , This app scans your face, analyses where your lips and eyes are, and from there lets you try on different products, looks, and color tones. Or take the travel industry where hotels, travel agencies, and tour companies are all exploring and implementing generative AI-enabled Avatars or robots to personalize their customer experiences, journeys, and itineraries based on their preferences and desires. It’s all about crafting individualized experiences and generative AI offers brands the opportunity to provide just that.
Further a recent study from McKinsey Global Institute * discovered that generative AI has the potential to generate up to $ 4.4 trillion in global profits annually. And just in the retail and CPG (Consumer Packaged Goods) industry, we could see up to $600 billion in operating profits annually deeming from generative AI, which is huge. And across all industries just to give a further breakdown about 75% of the value that generative AI would create would emerge predominately from 4 areas of businesses: customer operations, marketing and sales, software engineering as well as research and development.
The Power of Personalization: Boosting Digital Experiences & Revenue:
All in all, personalization is a strategic approach that companies in the digital space can choose to adapt and benefit from. Businesses now understand that content is not a ‘one size fits all’ and personalizing it will significantly impact and improve your customer's digital experience with your brand, service, or product and revenue. This will also ultimately enhance your overall customer relationship by making your customer feel valued and understood while delivering compelling and relevant offers. All driving forces for increased performance, growth, and revenue gains.
Whether you are an E-Commerce Giant or a small Startup, personalization can make a significant impact on your bottom line as well as customer satisfaction. Visionet works with businesses of all sizes and industries. Talk to our experts today and discover how they can help you achieve your goals.