You’ve heard the term “personalization” thrown around, but what does it actually mean?
‘Personalization’ was one of the top mentioned topics in data and marketing in 2017, and, according to MarketingProfs, 68% of firms have made personalization a top priority. But where does AI personalization sit in 2021? How does it work and how is it being effectively used?
What is AI content personalization?
One of the first questions that come upin conversations about personalization with executives is what is AI content personalization? It’s simpler than most people make it out to be. In the easiest terms, AI content personalization is tailoring your website based on data you haveabout an individual. This data may be geolocation, the source of where they are coming to your site (email, search, social, paid ad, referring site), the device they are using,or any other number of data points a company may have on the individual coming to their site.
AI content personalization is tailoring your website’s content based on data you have about the individual visiting your site. Content personalization is being used by eCommerce stores such as Goldspot Pens and eCommerce giants like Amazon to increase their conversion rate and bottom-line revenue by significant margins.
What are the benefits and drawbacks of content personalization?
The benefits are clear, AI content personalization increases revenue by 15% on average and consumers are reporting that they feel better after a purchase and prefer companies who personalize their product offerings. AI content personalization is a major step to take for eCommerce, enterprise B2B, and other industries in 2021.
- Increases conversion rate and revenue.
- Increases customer satisfaction.
- Distinguishes you as a brand with the same resources as Amazon.
But what are the drawbacks to implementing personalization to your website? The major drawback to using personalization is the implementation. It can be difficult for business owners to implement a personalization strategy, primarily if they are attempting to go into the trenches with the extremely tech-oriented side of personalization. Do not go alone! AI content personalization can be complicated to get right.
As a business owner, you need to go about finding an easy-to-use, done-for-you solution to personalizing your website. If you are an eCommerce store CEO, you can look into software for personalized site search, personalized category pages, and smart recommendations.
How Does AI Content Personalization Work In 2021?
AI personalization can be complex, but we will make it simple for you. Content personalization works primarily by third-party tools that collect data (or use data you already have) and customize parts of your site utilizing the data collected. Previously, companies needed to hire an expensive expert developer to attempt to custom-code things like this, but, luckily, in 2021 and beyond, we are seeing businesses appearing to help automate and simplify this process. AI content personalization isn’t just for Amazon anymore. Real, small business owners are implementing personalization into their websites right now.
Content personalization works by utilizing data such as:
- Source (email, search, paid, social, referral site, etc)
- Device (android, iphone, google pixel, etc)
- B2B Information (industry, company, revenue, employee count, etc)
- Number of site visits
- Time of day
- Purchase history
- Behavior on site
- Email opens and clicks
- Notification click-through or dismissal
Brainstorm about using these different data points to customize what appears to your customer and how it would improve conversion rate while making your end customer happier with their purchase and your brand. AI content personalization is simply the use of software to implement campaigns that improve revenue and customer satisfaction by intelligently using data, so business owners don’t have to guess anymore.
AI personalization can be used with:
- eCommerce stores
- Cloud apps
- Mobile apps
- Online chats
And more examples are waiting to be found by entrepreneurs looking to create innovative companies in 2021.
More Examples of AI Content Personalization
If you are considering to implement AI content personalization for your own eCommerce store, it’s a great idea to look at how other companies are using it. To be succesful, Companies ranging from the Fortune 500 to small businesses are using personalization. So if keep look keenly enough, and you may find that the sites you frequent the most, are using personalization in really creative ways.
Fashionista AI Recommendation
Fashionista is a top eCommerce brand and magazine operating in the fashion space that has been making historic highs with their conversion rate and repeat purchases. How are they doing this? In no small part from their intelligent AI recommendations they show to all their users based on their shopping behavior.
This personalization is done using previous orders, buyer persona profile, and browsing history to create a persuasive call to action to any of their customers.
You’ve seen this done before on Amazon, where they have crafted AI recommendations to an art-form. They use what you have previously purchased, what you’re interested in, and what similar buyers purchase to create perfect recommendations for you when you’re on their site.
Abandoned Cart Popup by Park City Lodging
A great personalization campaign done by Park City Lodging which focused on sending personalized exit-popups to people who were interested in properties but didn’t convert. It isn’t hard to see how this kind of campaign can be used in online stores and other brands.
This personalized campaign focused on sending them an email reminder to check out their favorite properties so they can remember which they were considering staying in on holiday.
This can be used wonderfully in eCommerce reminding people which products they are interested in, so they can be reminded again in the future if they have made a decision at that point, but may have forgotten to go back and go-through with the purchase.
Personalized Upsell from Walmart
Personalizing your upsell recommendations is one of the best ways to quickly get a boost in pure profit from your store. Countless eCommerce brands are doing, but we’re going to take a look at one of the biggest.
Walmart uses customized recommendations based on their visitor profile of the user to recommend products that similar buyers were interested in. This is utilized efficiently on so many professional brands and you are missing out if you aren’t customizing your upsells and cross sells. Here is a typical upsell utilizing AI personalization:
You have your product you are looking at or just added to your cart and you have specifically chosen recommendations below the product that are designed to convert the individual user.
Intelligent cross selling is just as important:
Someone is searching for skinny fit jeans and the AI personalizes other outfit pieces that normally go with that piece (skinny jeans in this case).
Cross selling and upselling is one of the best ways to quickly boost your store’s revenue.
Conclusion: Should You Use AI Personalization?
This is the million dollar question! Brands have successfully used content personalization to increase their revenue by millions of dollars, but is it right for you? Answering that question comes down to your specific site, customer profile, and product catalogue. Brainstorm using these examples and more, as well as the specified data-points and consider if there are sure-fire ways you can use AI personalization in 2021 to maximize your profit. We are always happy to speak with you and figure out if there are creative personalization campaigns that are just waiting for you to take advantage of.
KT Mehra is an entrepreneur responsible for the Goldspot Pens brand which is moving to become the top online retailer of fountain pens, ink, and stationary. She has a variety of interests and contributes to magazines and blogs on topics ranging from writing and art to her experience in business and digital marketing.