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The Power of AI in Customer Personalization

info on May 15, 2024

In today’s digitally-driven world, personalization has become a cornerstone of successful customer experiences. Businesses that tailor their products, services, and marketing efforts to individual preferences are reaping the rewards of increased customer loyalty and higher conversion rates. Enter Artificial Intelligence (AI), the technology driving a new era of customer personalization.

The Era of Personalization

Gone are the days of one-size-fits-all marketing and product offerings. Modern consumers expect businesses to understand their unique needs and preferences. Personalization goes beyond addressing customers by their first names; it’s about delivering tailored solutions and experiences.

AI: The Catalyst of Personalization

1. Data Analysis at Scale

AI can process vast amounts of data with lightning speed. It sifts through customer behavior data, including browsing history, purchase history, and social media interactions, to identify patterns and preferences. This analysis enables businesses to create highly personalized recommendations and marketing messages.

2. Predictive Analytics

AI’s predictive capabilities allow businesses to foresee customer needs and behaviors. By analyzing historical data, AI algorithms can predict what products a customer might be interested in next, or when they’re likely to make a purchase. This foresight empowers businesses to proactively engage with customers.

3. Dynamic Content Generation

AI-driven systems can dynamically generate content based on individual preferences. Whether it’s personalized product recommendations in e-commerce or tailored content in email marketing, AI ensures that each interaction feels tailor-made for the customer.

4. Chatbots and Virtual Assistants

Chatbots and virtual assistants powered by AI provide personalized customer support and recommendations in real time. They can answer queries, offer product advice, and guide customers through the purchasing process, all while adapting to the customer’s unique needs.

Real-World Applications

The power of AI in customer personalization is not theoretical; it’s transforming industries:

1. E-Commerce

Online retailers like Amazon have set the standard for product recommendations. AI algorithms analyze past purchases and browsing behavior to suggest products that align with the customer’s tastes.

2. Streaming Services

Streaming platforms like Netflix and Spotify use AI to curate personalized content playlists and recommendations. This keeps users engaged and increases the time spent on the platform.

3. Travel and Hospitality

Companies in the travel industry use AI to provide tailored travel recommendations based on past bookings, travel history, and interests. Airlines, hotels, and booking platforms offer personalized experiences to keep travelers engaged.

4. Healthcare

AI-driven healthcare platforms use patient data to provide personalized health recommendations and treatment plans. This not only improves patient outcomes but also enhances the patient experience.

The Future of Personalization

As AI continues to advance, the possibilities for personalization are limitless. The future promises even more targeted advertising, hyper-personalized customer support, and dynamic content across various industries.

The power of AI in customer personalization cannot be overstated. It enables businesses to build stronger, more loyal customer relationships by delivering experiences that align with individual preferences and needs. As AI technology evolves, personalization will only become more sophisticated, providing businesses with a competitive edge in today’s data-driven marketplace. To thrive in this era of personalization, businesses must harness the capabilities of AI to truly understand and cater to their customers.

Hanging On by a Thread

Morgan Moresco on August 9, 2023

Written by: Frankie Ciccotto

Few online events were as inevitable as Meta’s release of its highly awaited application Threads, a text-based conversation space where communities of like-minded people can come together to discuss trending topics, share current photos, or just casually scroll through who they follow to keep up to date. Whether you’re a digital creator or a casual poster, Threads aims to be the next Twitter alternative, amassing 30 million user signups within 24 hours of release. Now, two weeks later, that online platform has grown to over 100 million members worldwide, securing the title of the fastest-growing online application of all time.

Securing Your Handle

As Threads is directly linked to Instagram, setting up a new account could not be made any easier. For users with an active Instagram profile, it’s as easy as downloading the application from your iOS store, logging in with your Instagram credentials, and boom — you’re ready to start posting your first thread. Your Instagram handle, profile picture, and bio have the option to automatically transfer over to your Threads account. In contrast to Twitter, its main competitor, Threads has a 500-character limit, whereas Twitter has a cap at 280. In each Thread post, users can additionally include links, photos, and videos up to five minutes long, further giving Twitter a run for its money. So far, the app is proving to be extremely user friendly.

What Can I Use This For?

Threads aims to target a multitude of markets, including content creators, casual posters, and everyone in between. Their current business model rejects the implementation of monetization, meaning traditional forms of advertising are prohibited — for now. Mark Zuckerberg, CEO of Meta, stated that his main goal is to make the product work well, and he expects the user base to grow far beyond that of Twitter, Instagram, and Facebook. While Meta clearly states that traditional forms of advertising and branding are not in the cards for Threads, this creates the option for traditional marketers to do branding and promotion on their own, without a built-in ad-monetization strategy. For the moment, it appears that Meta is attempting to acknowledge the need for built-in marketing materials without subjecting users to an overflux of traditional ads.

This seems to be Meta’s way of keeping basic users happy so that they are not turned off by an overabundance of adverts before Threads can actually become a staple in our day-to-day social media usage.

With millions of people already flocking to Threads, scrutiny has arisen. One of Threads’ founding principles includes the ability to limit news as well as political and social debates — creating a “friendly shelter” to limit the amount of information spread on the app. It seems the app is more focused on bringing niche communities together, whether they are focused on sports, music, fashion or entertainment.

The app is booming, users are excited, new content is brewing, and communities are alive and thriving. What more could a new app’s entrance into the social media world hope for? The threat of the unknown is what most users are perplexed about. How far is Threads willing to go to appeal to all consumers? With only three weeks up and running, Threads is off to a great start, but it is clear that work still needs to be done if it truly wants to become a front runner in the social media limelight. With its already ever-present commitment to positivity and moderation, Threads has the opportunity to become the default conversation-based app, winning over users seeking a refreshing change. On the other side of the coin, it has the opportunity to raise fear in those who believe the app’s main purpose is to limit and supervise what we say online. The question is: Will Threads be the ultimate gateway app that changes how conversations in the social media world are made, or will it backfire, and leave this revolutionary app hanging on by a thread?

Augmented reality will change how people experience the world around them, and it will expand the social reach of advertisers who will be able to directly engage with the consumer.

Trends to Integrate Into Your 2023 Marketing Strategy

Morgan Moresco on December 12, 2022

Written by: Danielle Gazda

At the beginning of 2022, the digital marketing community prepared for the start of a massive digital expansion. This expansion was the true start of a more integrated and accessible metaverse. It includes the increasing use of AI/AR/VR and other new tools in social media and advertising. In social media specifically, video content would be king in 2022, which was proved to be true. We saw this with the rise in TikTok’s popularity as Meta and Twitter declined.

2023 presents opportunities for continued digital expansion across social media, marketing, and everyday life.

Here’s what we’re expecting to see in 2023.

Social Media Content

AI Algorithms

Social media platforms, especially Facebook and Instagram, will continue to push AI algorithms. These algorithms are supposed to show consumers content that relates to them. While individuals may not relish the idea of seeing fewer posts from family and friends, this opens up more opportunities for brands to reach a wider audience that is more likely to convert.

Digital Representations

Avatars, NFTs, and AI-generated art are all becoming more prominent across social media. While there is a juxtaposition between wanting more original content with NFTs and opportunities for digitally generated content with AI, both show that digital art is the future. More brands may find themselves generating NFTs as a form of revenue for themselves or as fundraisers. They will also likely begin using AI-generated art to create the promotional content they need.

E-Commerce

Livestream Shopping

Instagram, TikTok, and Pinterest are looking to livestream shopping as the next way for brands to sell on their platforms. While these platforms are testing and having success with this feature in other countries, it hasn’t quite made it to the U.S. yet. Expect to see more announcements about this from social media apps in 2023.

Customer Service

Mobile/in-app shopping and online shopping overall have continued to increase as Gen Z reaches an independent purchasing age. The key to happy (and repeat) customers is personalized customer service. There are many options across social media, in Messenger, DMs, WhatsApp, etc., that allow businesses to automate replies to common brand questions. This is a great way for customers to have an inquiry answered or resolve an issue quickly. However, it’s important still to have real people available on the back end to intervene with more complicated requests.

General Marketing

Influencer Marketing

Influencer marketing continues to be a superior way for brands to gain exposure and bring in revenue. Partnering with influencers whose audiences intersect with your own can boost sales. And influencers perform a variety of services, whether it’s posting on their own social media or creating video content for you to share on your own platforms.

Advertising

Social media advertising remains the best way to gain reach, conversions, and more for your business. As the space becomes more crowded with businesses, it can be hard to find your footing. The holiday season, a time when spending increases greatly, is the best example of this. Refined targeting to reach audiences that meet your business goals is the best way forward. SEO, tagging, and defining your audience will get you to your goals.

What are some of your digital marketing predictions for 2023?

Is AI Art the Future of Digital Marketing?

Morgan Moresco on November 28, 2022

By: Danielle Gazda

With the metaverse, augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) becoming more commonplace, the digital universe is expanding and becoming more accessible. Digital marketers have questioned if moving into these areas is worthwhile or even viable. For most of these platforms, the utility and practicality don’t quite seem to be there yet. AI-generated art, however, is on the rise and is something that marketing teams can use to further their creative abilities.

Two of the most popular and well-known tools for generating AI art are DALL-E 2 and NightCafe. There are many other apps and websites that are just beginning their development with open betas. Others are more established like Midjourney and the two listed previously. Either way, this is an ever-growing field of interest with endless possibilities for advertising.

The basic form of any AI-generated art is derived from a prompt entered by the individual using the generator. This can be as specific or nonspecific as desired. You can specify descriptions with the style of art and aesthetic the user wants along with the exact elements, colors, etc., the image should contain. The system’s algorithm then takes that prompt and scours the internet to find images — a process called “scraping” — that will help it to develop options similar to your request.

Sourced images are scraped from all over the internet, including blogs, stock imagery sites, and news sites. It can be an invaluable tool when you’re looking for a precise image but can’t seem to find it anywhere among the copyright-free asset websites you subscribe to.

Something to note is that copyright issues may arise with AI-generated art in the future. It’s often unclear if what is being “scraped” is free for commercial use or is actually owned by someone. Some websites and apps use software that is trained to only search for copyright-free content. However, the technology is still imperfect and not implemented by all AI art systems. Currently, scraping is legal and protected under the “fair use” doctrine. Also, DALL-E 2’s terms of use and content policy say that “you may use Generations for any legal purpose, including for commercial use.”

AI-generated art will certainly be more common in the future, growing alongside the development of NFTs. These new segments of the digital art space breed myriad opportunities for artists and graphic designers alike. While nothing may be perfect yet, both are worth looking into for your business or marketing agency.

Are you interested in the future of AI-generated art? The 270M Design Team is always expanding its skills and knowledge of digital design. Reach out to us at info@thisis270m.com to learn more about what the 270M team can do for you.