How AI-powered personalization is creating new opportunities for brands

How AI-powered personalization is creating new opportunities for brands

Curated from Latest from TechRadar US in News,opinion — Here’s what matters right now:

In recent years, the way businesses engage with their customers online has undergone a profound transformation. While traditional personalization methods, such as targeted email marketing and product recommendations remain prevalent, a new era of personalization is emerging. Powered by technologies such as artificial intelligence (AI), machine learning, and advanced content management systems , this evolution is redefining customer experiences and enabling brands to deliver unprecedented levels of relevance and engagement. Whereas once personalization approaches were largely based around product recommendations, now they can shape the entire customer journey. In 2025, rich personalization (and the ability to do it at scale) will become a critical differentiator in the highly competitive digital landscape. The far-sighted companies that invest in this technology today will reap the rewards of enhanced customer loyalty and stronger market positioning. How, then does the new level of personalization work, and how can brands fully harness its potential? Data is the key At the core of personalization lies the collection and utilization of data. Fortunately, many brands already have access to a wealth of data sources from transaction records, website interactions, customer reviews, and more. The challenge many brands face is that this data is often siloed and challenging to integrate. However, there are technological solutions to this problem, namely API-driven platforms. These consolidate data from disparate sources and analyze it in real-time. This process enables the delivery of personalized content across multiple channels, ensuring a seamless customer experience . A dynamic data archiving system, when combined with real-time data integration, enables businesses to generate personalized recommendations automatically. Brands, especially those in the retail sector, can further tweak these recommendations taking into account factors such as previous purchases, location, or emerging trends. Artificial Intelligence taking personalization to the next level The driving force behind this new rich personalization is artificial intelligence. Companies can harness AI to analyze vast datasets identifying patterns and then making predictions. The algorithms will continuously refine their outputs as new data becomes available. This technology can enable brands to go way beyond the basic product recommendations and basic personalization communications that customers have become accustomed to. With the use of tailored large language models (LLMs) the entire customer journey can be personalization, everything from website design to dynamic email and app messaging. LLMs can speed up the personalization process and tasks that previously took days or even weeks to achieve can be undertaken in hours. They can also power automated customer interactions that feel natural and empathetic, engendering a sense of understanding and connection. Enhanced customer experiences Th

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Original reporting: Latest from TechRadar US in News,opinion

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