Do you know who I am? Personalization in Ecommerce using Real Time AI
Martyn Boddy
GTM Leader/VP Revenue/Partnerships / ex Shopify / Magento / WPP / AMEX | e-commerce | Building Industry leading partner programs - Business Development, Partnerships, Marketing
As a consumer in today's overly digital age, I'm constantly bombarded with advertisements and promotions that seem to know everything about me. From my browsing history to my purchase behavior, it often feels like the online world has a better understanding of who I am than I do myself. This level of personalization in ecommerce is made possible through the use of real-time AI, a powerful tool that allows businesses to treat each individual as a unique entity.
The Desire to be Seen and Understood
In this world of constant digital interaction (my iphone shaming me with my screentime logs), the craving to be acknowledged on a personal level by the brands we support is intensifying. It's not just about the convenience of online shopping anymore; it's about seeking a connection in the virtual space that understands what we want, and efficiently.
This thirst for personal recognition is where real-time AI-driven personalization in ecommerce touches a chord. When a brand utilizes technology to dissect demographics—such as age, location, and gender—and delves deeper into psychographics—understanding values, attitudes, and lifestyle—it transcends the traditional customer-business relationship. Suddenly, customers are not just a target for sales; they're individuals whose shopping experience is being crafted with care and precision.
Getting this right builds empathy between consumers and brands.
In a digital age where the concept of individuality often feels diluted, the power of personalization in ecommerce serves as a reminder that our unique identities can and should be celebrated. By harnessing the capabilities of AI to see and understand us as distinct individuals, brands have the opportunity to not just meet our expectations but to profoundly connect with us on a human level. Even if it is human and machine ;)
Is my phone listening to me..?
Consumers are often surprised at how accurately and swiftly a brand can discern their needs, sometimes even before they fully understand them themself. This futuristic capability, almost akin to reading minds, is due to the relentless labor of artificial intelligence (AI) in the realm of ecommerce. The core of this revolution lies not in the sheer volume of data crunched or the complexity of algorithms employed, but in the refined, almost delicate manner in which AI can tailor experiences that feel deeply personal and profoundly relevant.
Through analyzing patterns in browsing habits, purchase history, and even the time spent pondering over certain products, AI intricately weaves recommendations and suggestions that resonate with peoples unique tastes. Realtime AI wants to appear more human in its recommendations, similar to having a friend advise you on what to buy. Instant social proof almost.
AI needs to adapt almost in real time to be more successful. Today, it might understand your desire for for eco-friendly products, while tomorrow, it seamlessly shifts to present options that fit a newly discovered hobby or interest. This dynamic adaptation ensures that every interaction with an ecommerce platform is fresh, relevant, and deeply engaging.
The brilliance of AI in ecommerce does not solely lie in the technology itself but in the way it mirrors the intricacies of human thought and preference. It's a testament to how we, as a society, are moving towards an era where technology not only understands but also respects the individuality of each consumer.
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Real-Time Personalization: The Impending Norm in Ecommerce
The advent of real-time personalization powered by AI is transforming the ecommerce landscape at an unprecedented pace. This isn't just about technology's ability to offer products consumers might like; it's about creating a shopping experience that feels intuitively tailored to the users unique journey. As someone deeply entrenched in the world of online shopping, I've witnessed firsthand how personalized touches can turn a routine purchase into an engaging interaction that resonates on a personal level. Just ask Pressed Juicery , who took me from Instagram , to their loyalty and rewards technology, to their app and now towards a 7 day juice cleanse (that I think I want..?).
The shift towards real-time personalization is no fleeting trend; it's rapidly becoming the standard by which all ecommerce platforms are judged. The expectations of consumers like me are evolving. We're no longer impressed by generic recommendations or one-size-fits-all deals; we crave experiences that acknowledge our individual preferences and buying habits.
Let's not forget though that this isn't just about the purchase. Having real time AI changes the shopping experience and done right really build brand loyalty. We all have physical stores we love and our reasons why. Real time AI can help support this digitally. Don't forget your design of course.
Industry Insights
Looking at the research, the stats regarding the power and necessity of personalization in ecommerce are both fascinating and affirming. Reading studies like those conducted by Dynamic Yield by Mastercard , which report that an overwhelming 90% of consumers are attracted to personalized shopping experiences, is not surprising. It's compelling to see hard data support what I've felt intuitively—that personalization is not merely a preference but a desire among shoppers.
Crossing Minds research further deepens this narrative, showcasing how tailored recommendations can significantly uplift revenue, by up to 10%. This statistic isn't just a number; it's a testament to the symbiotic relationship between consumer satisfaction and business success. The insight that makes this more authentic, however, comes from Shopify . Their finding that 57% of consumers are willing to trade personal data for personalized experiences underscores a critical aspect of modern commerce—the value exchange between privacy and personalization.
Don't forget AB testing. According to Nosto 92% of marketers believe their brands deliver personalized experiences to customers but only 45% of consumers agreed that the majority of brands they interact with provide personalized experiences
Personalization is not just a business strategy; it's a reflection of the human need to be understood and acknowledged. The future of ecommerce lies in recognizing and valuing the individuality of each customer, enabling more meaningful and engaging shopping experiences.
Embracing the Individual Beyond the Screen
The evolution of ecommerce to where AI can intricately map individuality reaffirms my belief that technology can enrich human connection. It's not often I am delighted by online stores these days, but when I am, it's usually because of design and understanding me as a customer. These instances aren't merely transactions; they're meaningful exchanges where I feel recognized.
This shift towards personalization, powered by real-time AI, will become the standard in ecommerce—one where our identities influence not just what we buy, but how we connect with the brands we choose to support. The future I envision is one where every digital interaction feels somewhat social, transforming the act of shopping online into an experience that celebrates uniqueness and delivers more than just a product. As a consumer, do you feel this today? As a brand, stay ahead of the game.
Senior Leader | Customer Journey & Personalization Expert | Driving Data-Driven Digital Strategies, Omnichannel Marketing, and Customer-Centric Innovation | Content Supply Chain Strategist | Marketing Teacher
3 个月I've been in the personalization for about 6 years now and I absolutely love it. However, I think there's a pt 2 to your post - the balance of customer desire to be seen and the privacy laws set by governments and tech companies.
Head of Partnerships - US | Non Profit Founder
4 个月Great topic and blog post ?? This is near and dear to me since I’ve spent a good part of my career in personalization. The biggest issue I’ve seen is that personalized experiences are difficult to get right. Balancing the exchange of enough personal info for meaningful interactions is always tricky. Too invasive and you turn people away, not personal enough and they feel you don’t know them. Given that there is not one definition of personalization also makes this challenging for brands to define success. The truth is success will look different for every brand. The brands who get it commit and spend on this part of their business (ex Farmers Dog) and the ones who don’t get it cut this tech/team first when times get tough. Much like most tech, it’s only as good as the team or people deploying it.