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The Path to the Customer's Heart: Content Personalization with AI — Postmypost

The Path to the Customer's Heart: Content Personalization with AI

18.09.2024
Read 9 Minutes
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Elizaveta Yaroslavtseva
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Marketing is no longer impersonal.

In the past, we communicated with a mass audience, where everyone was just one of many. Now this has changed: it’s not about a broad audience, but about each individual person.

We can no longer speak simultaneously to everyone and to no one: the key to success is targeting a specific individual. For example, instead of a standard promotional email, you can offer a customer a discount on the product they were searching for. This is personalized content—it speaks directly, reflecting the needs and desires of the individual. In contrast, non-personalized content sounds like general information that does not address the interests of a specific user and often proves ineffective.

But it’s not as simple as it seems. Previously, it was enough to divide the audience into several large groups based on interests, but today that is no longer sufficient. For instance, if you sell outdoor products and group all fishermen into one category, that group will include ice fishing enthusiasts, mountain stream fishing fans, and those who only hunt for large fish. This general classification does not account for the nuances and needs of each individual.

Instead of generalized segments, we now strive to create individualized offers. This means that each user is presented with content that matches their specific interests and needs.

And this is where artificial intelligence comes to the rescue. AI allows for the processing of vast amounts of data, revealing subtle details of consumer interests and behaviors.

The Importance of Content Personalization

Personalized content acts like a magnet for engaging users.

When a user sees content that is created specifically for them, they are more willing to interact with it. This can be anything: personalized offers, product recommendations that are genuinely interesting to them, or unique promotions based on their previous purchases.

From engagement follows the next, much more important point—conversion. The user comes in, sees what they are looking for, and makes a purchase.

Imagine you enter an online store. Instead of facing hundreds of irrelevant products, you see offers that perfectly match your interests and needs. This is not just convenient; it reduces the stress associated with finding the right product. Less time is spent, and results are achieved faster.

When a customer doesn’t have to waste time searching, they make a purchasing decision more quickly. A simple and clear offer lowers the barrier to purchase and makes the process much more enjoyable. This directly reflects on your metrics: the number of completed transactions and the average check increases.

Personalized content not only simplifies the search process but also significantly enhances satisfaction levels. When a customer sees that they have been offered exactly what they need, it creates a sense of being valued and understood. In turn, this fosters loyalty and strengthens trust.

In a highly competitive environment, this solution becomes an integral part of successful marketing.

Examples of Personalized Content

Take Yandex.Music, for example. "My Wave" knows exactly what the user likes to listen to and selects tracks based on that. If a person regularly listens to certain genres or artists, the algorithms analyze these preferences and suggest something new that is likely to be enjoyed.

Another example is the online cinema Kinopoisk. Here, the recommendation system works on the same principle. It analyzes viewing history and based on that suggests movies and series that the user might like. Moreover, Kinopoisk also creates collections based on interests, whether they are comedies, dramas, or sci-fi.

Let’s not overlook marketplaces. They use personalized recommendations to offer products that might interest the buyer. They collect data on products that were viewed but not purchased, and then offer relevant selections.

Personalized Data: What is Important to Consider

When it comes to personalization, it’s important to remember that success lies not just in using all available data, but in the right combination and interpretation of that information.

The first factor is demographic data. This is the foundation for understanding who your customer is: their age, gender, income level, and other characteristics. This data provides a general overview of the target audience and helps create segments for more precise targeting.

The next element is behavioral data. This is information about how the user interacts with the product or service: what they view, what actions they take, how much time they spend on certain pages.

Interaction history is another important aspect. It’s like tracking the development of a relationship with the customer: what they have purchased previously, what services they have used. This data allows for relevant updates or improvements to be offered. For example, if a customer bought a specific model of a phone, you can suggest accessories compatible with that device.

And, of course, geolocation data. Where exactly is the customer located, and what regional characteristics might influence their preferences? This is useful for providing local offers and promotions.

Ignoring Personal Data

Ignoring personalized data is not just a missed opportunity; it’s a real threat to the business. When content does not take into account the interests and behaviors of the user, its relevance sharply declines. This means that potential customers see only general offers that do not meet their requests. As a result, engagement decreases, and users begin to perceive the brand as less valuable.

But the consequences can be even more serious. When a company regularly ignores personalized data, it undermines trust. Customers feel invisible, which decreases their loyalty and increases the likelihood that they will switch to competitors. Constant neglect of personalization leads to the loss of valuable relationships and to a deterioration of the company’s reputation as a whole.

The Role of Artificial Intelligence in Personalization

AI is radically changing the approach to personalization in marketing. This shift from intuitive methods to precise algorithms is not just a step forward—it’s a leap in business.

First, AI actively uses big data analysis to identify complex patterns of user behavior. A classic example is product recommendations on online shopping platforms and marketplaces. For instance, AI analyzes not only what you have purchased before but also how often you interact with certain product categories. This allows for the formation of hyper-personalized offers that are genuinely interesting to the specific user.

Manual methods that used to take weeks are now completed in just minutes. AI simplifies this process, allowing for rapid adaptation of offers to changing user preferences.

Moreover, AI allows for the prediction of user behavior with high accuracy. It not only helps understand what the customer needs now but also anticipates their future needs, contributing to the creation of long-term relationships.

Studying the Audience with AI

One of the main advantages of AI in audience research is segmentation. AI can analyze vast amounts of data and identify specific user groups based on their behavior, preferences, and demographic characteristics. This allows for the creation of more effective marketing campaigns targeted at specific audience segments.

User behavior analytics is another important aspect of audience research where AI can help. AI can analyze data on user behavior on websites, social media, and other online platforms, identifying patterns and trends that may not be obvious to humans.

AI can also help uncover hidden preferences and trends that may not be apparent to marketers. For example, AI can analyze purchase data and identify patterns in user behavior that may indicate new market opportunities.

Conclusion

Using artificial intelligence for content personalization and process automation is not the future; it is already a reality. Many companies are already implementing AI into their business processes to enhance efficiency and improve customer interactions.

However, it is important to remember that the implementation of AI should be done wisely and cautiously. AI is not a magic wand. It is essential to clearly understand which tasks can be automated and which require human intervention.

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