Personalization and AI are probably the two biggest technical buzzwords to come out of the last couple of years. But why is personalization so important? And how can AI transform current personalization techniques? Let’s take a look.
Importance of Personalization
Today, the internet is a heavily saturated place. When consumers browse for something they want or need, they will be faced with innumerable options to choose from. However, consumers also demand simplicity, intuitiveness, and instant satisfaction, which is where personalization can be the key to improving customer experience.
Personalization is a growing field in many industries. Previously, for example, online casino games would provide basically the same features, levels of gameplay, RTP and volatility to all players, no matter where they were or their gaming behaviors. But, when game show enthusiasts play the Plinko Go slot and other customizable games, they will be able to opt for different specifications each time. In Plinko Go, players can choose from between eight and 14 paylines. In turn, this dictates the multipliers in play, the size of the game board, and therefore the technical aspects of the gameplay. With this in mind, personalization can allow for tailored options within one experience, improving the reusability value of such products and services.
It’s hardly any surprise, then, that this year the global market revenue for customer experience personalization software is estimated to go beyond $9.5 million, as many brands are already spending over half of their marketing budgets on developing personalization techniques. This is because a reported 81% of consumers prefer personalized experiences – for 70% of those, this includes where the brand knows their past purchases, purchasing habits, and any previous support without being prompted. Beyond this, 71% expect businesses to deliver personalization, which is why around 75% of business readers believe that personalization is a requirement rather than an option.
How AI Is Transforming Personalization
The AI craze has well and truly impacted many industries and processes – and personalization is no different. Today, many businesses are experimenting with combining traditional and generative AI with personalization techniques, particularly for curating targeted adverts. According to research published by PR Newswire, 40% of consumers report that the ads they see are irrelevant to them, for which AI-backed personalized campaigns can supposedly increase ad spend return by 10-20%.
Elsewhere, Aampe has recently deployed 100 million AI-powered customer service agents in a bid to bolster its existing infrastructure. Each user will have a unique AI agent that monitors use and engagement data, learning from the behavior in real time. This allows for continuous one-to-one cross-channel personalization, removing the need for complex segmentation and switching between different tools.
Generative AI tools are also seeing a rise in implementation. Notably, Adobe is set to expand the Experience Platform onto Amazon Web Services by the end of 2025, as announced at the re:Invent conference. The conversational AEP AI Assistant can allow businesses to get instant data insights into segment and campaign performance using text prompts. In addition, it can support real-time personalization for consumers by running multiple simultaneous marketing campaigns that can be tailored to, and triggered by, specified attributes, behaviors, and actions.
As you can see, personalization is increasingly becoming a necessary rather than a ‘nice-to-have’ solution. And, as AI-powered technology continues to become more and more commonplace, these AI-backed solutions may herald the next generation of personalization for both businesses and consumers alike.
