Weak personalization can have a negative effect on consumers, with two in five saying they would stop buying from a brand if they perceive their ads to be unrelated or poorly targeted, according to a report by marketing platform Emarsys.
The study, which interviewed 2,000 consumers in the UK, highlights shopper’s growing demand for more personalized offers (60%), adding that only 6% of consumers currently believe they receive these.
Creating a tailored experience is therefore key, with 41% of respondents say they would shop again with a brand if the offers they received were clearly unique and personalized to them.
However, brands are struggling to scale their human-led personalization efforts, identifying the need for automation processes and artificial intelligence (AI) programs.
“The customer is expecting an experience that they want to be personalized in a speed that is impossible,” a representative for German agile-retail start-up Les
ara, told the audience at the recent Emarsys Revolution conference. He added how technology is an enabler for personalization, and how the company has been using data as a “north-star” to guide its efforts.
Also at the conference was membership-only e-commerce brand, BrandAlley, which shared how its effort to tailor its email content to previous purchasing behaviour with the help of AI, increased traffic to its site by 16%.
AI adds immense value to personalization strategies, noted Grant Coleman, VP and market director of the UK and Nordics at Emarsys: “AI tips this balance in [retailers] favor, doing all the legwork so that communication is always tailored across every channel along the purchase lifecycle, eliminating the risk of upsetting valued patrons.”
Across the industry we’re seeing a steady increase in brands focusing on personalization by deploying tools such as AI. Recently, H&M invested in Thread, a UK-based men’s styling service that uses a combination of man and machine to tailor recommended items for its users. The move shows that the Swedish group is well aware of such technology as an important catalyst for all future consumer interactions.
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