AI Personalization in Marketing

What is ‘AI and Machine Learning’?

AI (artificial intelligence) and machine learning are the tools a brand can use to streamline and optimize every touchpoint of their commerce marketing, from internal workflows and processes to the external customer experience and invaluable data collection on all fronts. 

Brands that leverage intelligent technologies through award-winning platforms (like Plexure’s) for their mobile marketing initiatives have all the tools they need to persistently improve their customer experience through audience segmentation, deep personalization, efficient automation, data collection and data analysis. 

Artificial intelligence and machine learning enable brands to achieve the highest level of personalization through their mobile app. These tools gather and consolidate customer data, including recent transactions, in-app behaviors, demographics and offline purchases connected through physical loyalty cards, to make predictions about future behaviors and improve the customer experience on an individual basis. 

What is artificial intelligence?

Artificial intelligence, or AI, describes the advanced technologies that have the ability to make automated, intelligent decisions resembling human behaviors, human speech or communications, and human problem solving. These technologies can be used to gather mobile marketing data, analyze the data and make inferences from recent behaviors to perform targeted actions with heightened efficiency and accuracy.   

 What is machine learning?

Machine learning is the process the AI technologies use to identify recent behaviors and pinpoint behavioral patterns. This advanced technique allows marketers to derive insights from the data learned by the machine and use them to improve future marketing decisions. 

AI and machine learning are self-sufficient in their ability to continue improving their methods, based on recent, real-time data. From the data collected by machine learning engines over time, AI can accurately predict each customer’s future behaviors. Your brand can leverage these predictions and integrate them with your marketing strategy to make relevant product or service recommendations, send tailored offers at critical moments in each customer’s journey, and deliver highly-personalized push notifications to encourage key actions from customers. 

Intelligent technologies generate invaluable customer insights that can be used to improve the customer experience, boost customer satisfaction and retention, and help brands create magical, meaningful moments with their customers.  

The Power of AI in Mobile Marketing

All commerce companies, including E-commerce companies, can use AI to create a consistent marketing experience that connects a customer’s offline behaviors with their online experience. 

This could mean the same promotion or offer is advertised in-store, with physical signage, as well as online through a brand’s mobile app. Data and insights derived from AI and machine learning through a brand’s mobile marketing can be leveraged to influence in-store, offline marketing decisions. 

Connecting offline behaviors to online behaviors could also include a physical loyalty rewards card that integrates seamlessly with a brand’s mobile app to track a customer’s earned points, recent transactions and offer redemptions. Connecting a customer’s offline behaviors (in-store purchases) with their online behaviors (in-app actions) can give your brand the information it needs to improve a customer’s experience.  

Companies can use AI to pinpoint customers’ evolving behaviors, interests and attitudes to further refine their marketing strategies and content strategies. 

Advanced technologies can help brands get the most return from their data collection, by analyzing a myriad of data in the shortest amount of time. These lightning-fast analyses that are only made possible through advanced technologies can help your marketers to make more informed future decisions. 

These insights can be used to make consistent optimizations to marketing campaign content and audience targeting strategies in real-time, as the campaign is running. 

AI can be leveraged to promote a level of personalization unparalleled by traditional marketing methods. 

What is personalization in marketing?

Personalization is how your brand demonstrates that it understands each of your customers on an individual basis. It’s how your brand fosters a meaningful moment, forms a connection with your customer, and earns his or her trust in your brand.

Personalization, AI and machine learning go hand in hand. To reach a certain level of personalization in marketing, you need AI and machine learning tools to derive insights from your customers’ recent behaviors, locations, interests and transactions. 

All of your mobile marketing engagements (product recommendations, offers, in-app messages and push notifications) need to be personalized for each customer - and here’s why:

“Nearly all consumers (91 percent) are more likely to shop with brands who recognize, remember, and provide them with relevant offers and recommendations” (Source).

Let’s say one of your customers is a vegetarian who regularly orders pre-made salads, organic vegetables and fresh pastas for pick-up on your grocery store app. If you send this customer offers for frozen chicken tenders, honey ham and bacon, not only will they not be redeeming that offer, but they’re going to feel like your brand doesn’t understand them on a personal level. 

Sending impersonal, irrelevant offers to a customer can cause them to lose trust in your recommendations - and therefore, lose trust in your brand. Keeping your customers happy, engaged and loyal to your brand requires deep personalization.

That’s why personalization is harder with a one-size-fits-all solution. Your marketing solutions must have the ability to adapt to dynamic consumer needs and interests. AI and machine learning use a number of different processes, data sources and problem solving techniques to gain the full perspective of your customer.

Using one demographic alone, like the customer’s age, gender or location, to determine his or her needs and interests and predict future behaviors won’t provide accurate insights. Your customers are unique, dynamic and complex - which means your technological resources should be too. 

Automation is another key feature of artificial intelligence that supports brands in delivering personalized engagements in real-time, at optimal moments in the customer’s journey. Messages or notifications can be delivered in response to specific in-app behaviors, based on the time of day, based on the customer’s most active hours, or based on the customer’s location.

Personalization Through User Profiles 

Personalization can be divided into implicit user profiles, explicit user profiles, and hybrid user profiles. 

Implicit user profiles are created based on information acquired from the customer’s behaviors and interactions, including the customer’s search history and click-through data. 

Explicit user profiles are essentially created by the customer. This includes the preferences they add to their profile or delete from their profile through a brand’s mobile app, as well as the feedback they provide on specific products or services.

This level of data collection is made possible through AI and machine learning that draw from both groups of data sources in their algorithms. As federal regulations (specifically GDPR) protect the customer’s privacy and data rights, and allow your customers to interact with your brand without providing any data, the benefit of implicit data is capped by regulation. 

On the other hand, relying on explicit data can skew insights by focusing solely on the information your customer provides you. 

Used disparately, implicit user profiles are missing valuable data from the user’s explicit behaviors, and explicit profiles are missing data from the user's implicit information. Combining both user profile types to create hybrid user profiles that pull a wide range of critical information has truly paved the way for the future of mobile commerce.

How AI Shapes Personalization in Marketing

AI and machine learning can support your brand in extending your offline in-store experience to your online digital experience, by imitating personal interactions with the greatest efficiency.

Your brand’s digital experience should reflect your in-store presence, in terms of personalization and customer service, as closely as possible. Your mobile app should deliver the level of personalization that your in-store team delivers.

Earn your customers’ trust through relevant product or service recommendations. 

A customer at a fuel convenience store brings a bottle of water and a Nerd’s rope candy to the cash register to checkout. The cashier rings up the Nerd’s rope and says, “I see you like Nerd’s; have you tried the new Nerd’s gummy clusters?” 

The customer then books it back to the candy aisle to grab two bags of Nerd’s gummy clusters, because Nerd’s are his favorite candy. Through this recommendation alone, your cashier successfully upsold your customer, making a more profitable sale, and developed a deeper connection with your customer by earning his or her trust in your team’s recommendations.

Your mobile app needs to take the place of your in-store cashier, recommending similar products or services, cultivating a personal engagement, based on each customer’s previous transactions or current in-the-cart transactions.

Advanced AI and automation tools pick up an array of data from your customers’ recent behaviors, and transcribe this data to information that can be leveraged to tailor each customer’s personalized experience and foster an impactful, meaningful engagement.

Strengthen your targeting capabilities to narrow your focus and maximize your impact. 

Before your brand can reach your ideal customers, you need to identify your customers. To truly understand your customers, you need to know the specific characteristics, behaviors, interests, demographics and locations that tie them to your products or services. 

At Plexure, we harness AI and machine learning in our advanced audience segmentation and targeting tools. Our tools enable your marketers to create rich profiles for each customer, pulling from a constant stream of data (customer preferences, historic purchases, offer and loyalty redemptions, demographic and contextual data) to segment customers, based on the most relevant data that align with your brand’s KPIs and business goals. 

We provide a minimum of over 40 targeting and segmentation criteria, and we can also work with you to map out the customer segments most important to your business.  

Through our advanced targeting capabilities, your brand has the tools it needs to supercharge your marketing campaigns, deliver highly-personalized content and offers, and refine product or service recommendations through efficient automation in real-time.   

Marketing to dynamic customers requires dynamic solutions.

Effective mobile marketing requires a dynamic approach that evolves alongside your customers’ evolving needs, behaviors and desires. A static strategy will produce static results. 

To see growth in your customers’ satisfaction and retention, your business sales and overall return, your marketing strategy needs to be in a state of persistent improvement and optimization. 

Through AI and machine learning, your marketing team has access to the data that shows you which type of engagements are most effective for individual customer profiles. These technologies use algorithms that continue to gather data over time, constantly refining each customer’s experience - with minimal human interaction required from your marketing team. 

Customer insights generated from machine learning will make your marketing team’s job a lot easier. The AI algorithms pick up on recent trends, including metrics such as spikes in loyalty card registrations, declines in app adoption and offer redemption rates, to learn from behavioral patterns and identify areas that require optimizations, improvements or spend adjustments. 

Plexure provides world-class solutions in AI-generated personalization. 

Leveraging data science is fundamental to the success of any customer engagement program. Through our world-class artificial intelligence and machine learning engines, your brand can truly understand your customers, pinpoint their desires and deliver the most personalized engagements to a market of one.

We’ll help you build automated, effective campaigns that generate the results you’re looking for. Whether you have 100 locations or 1,000 locations, our solutions enable your marketing team to build automated campaigns that continuously and persistently evolve.

Our world-leading AI is applied to inform your messages and timings so that your marketing campaigns hit the mark every time. 

In the modern world, customers expect their favorite brands to know them on a personal level, understand their interests and anticipate their future behaviors. The importance of personalization is absolutely paramount in customer-centric industries. 

Your brand needs explainable AI tools that operate at a level of transparency, denoting how they come to conclusions, so your marketing team can trust the source of your data and the quality of your data. (What is explainable AI?)

By leveraging artificial intelligence and machine learning, your brand can engage with your customers at the highest degree of personalization through your customers’ most personal mobile devices.

We provide end-to-end mobile engagement solutions that support your team in strategizing, executing and optimizing mobile campaigns to generate significant business outcomes. 

But enough about us. Ready to find out what we can do for you? Book your demo today.

If you’re ready to take customer engagement to the next level through deep personalization, schedule a demo of the Plexure platform today.