Let's look at how AI is used to create personalized recommendations for customers, like the benefits of personalization, such as reduced costs and increased revenue and how to implement it in your marketing.
Personalization is nothing new, in fact it’s almost as old as the internet itself. Research from McKinsey found that personalization can:
While we’ve all given a retargeted ad a second glance for being a bit too personalized, it has become the ultimate competitive advantage. Artificial Intelligence is revolutionizing how businesses connect with customers by delivering hyper-targeted, contextually relevant recommendations across industries.
Gone are the days of basic lookalike audiences, persona segmentation and the basic HTTP stalking you around the internet cookie. Modern AI recommendation systems are sophisticated intelligent platforms that:
In its most simplistic form, AI recommendations come down to being able to assimilate and action vast quantities of data at a much quicker rate than your marketing team. It’s not clocking off at the end of the day and it’s not got to wrestle with jumping between the CRM team, the developers, copy, compliance and however many other departments you usually need to present the best information possible for your customer.
Because AI can transcend platforms and channels, you’re not having to battle with trying to get one tool to talk to another or share data successfully.
Your AI recommendation system has:
Going back to the McKinsey research mentioned at the start of this article:
This means if you’re overlooking any form of personalization, you’ve already annoyed over three quarters of your potential customers. And this is before they’ve found a product out of stock, being directed to a 404 page or had a frustrating experience with customer service.
Like any tool or new technology, you don’t have to understand every last line of code to get to grips with how AI recommendations work:
If you’ve got any online presence, AI recommendations can work for you:
Just like rolling out any new AI systems, or even any new technology, there are several elements you’ll need to consider before you go live.
In many of these cases, you’ll find multiple benefits across various departments. For example, any AI is only as good as the data it’s trained on. Auditing your data, ensuring it’s clean and ready for your AI is also going to help your marketing or insight team. Regular data audits are also recommended for compliance checking.
Technical Requirements
Ethical Dimensions
Human Oversight
Once you’ve thought through your checklist and you know this is something you want to implement, it’s time to roll out your strategy:
AI-powered recommendations represent more than a technological innovation – they're a fundamental shift in how businesses understand and serve individual customer needs. By combining advanced algorithms with human-centric design, organizations can create experiences that feel personally crafted for each user.
Personalization isn't about selling more – it's about understanding better.
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