News#AI
6 November 2020
Unsplash © Joshua Earle

How to deliver personalised customer experience with AI-based advertising

Consumers express their views, needs, wants, and attitudes in different ways on endless channels. But how do you keep up with this increasing volume of data?

Smart marketers have turned to AI to transform consumer data into actionable insights that can be used for personalising the customer experience in multiple ways. Here are four ways in which you can use AI-based advertising to personalise your user experience:

1. AI in programmatic advertising 

Today, brands have unprecedented access to customer information, and they can use technology to influence customer behaviour. This can be achieved by creating advertisements that match customers’ interest. However, the kind of personalisation we are talking about goes beyond mentioning names in the subject lines of your emails or building on customers’ past online behaviours. Instead, we are talking of personalising ads with emotionally appealing features like colours, sounds, and images to engage customers on a more personal level.

Data indicates that 63% of respondents feel annoyed by how brands continue to rely on the age-old strategy of blasting generic ad messages repeatedly. This can be changed by combining programmatic advertising with AI for more personalised customer journeys. With programmatic advertising, you can purchase ad impressions on publisher sites or apps to connect with your user base more effectively.

With AI, you can optimise the results you achieve from programmatic advertising as machine learning algorithms recognise and quickly adapt to new patterns, making AI-based systems quite suitable for real-time advertising. 

AI also collects and organises large quantities of data for each user visit, which can be used for segmentation to serve more relevant content to users each time. It is also possible to use Natural Language Processing (NLP) to improve ads’ contextual relevance. NLP-based systems compare your ad’s content to the publisher’s website’s content to make sure that ads are displayed only on relevant websites automatically. This ensures your ads don’t appear in an inappropriate setting to protect your brand image.

2. Using programmatic AI for deeper personalisation

With AI, it becomes possible to create dynamic ads that change design, colour, and layout for each user according to their taste and preferences in real-time. So, the same ad for a clothing brand delivered to you in India in the tropical summers will show a breezy scarf that would be replaced by a warm, cashmere scarf for a user opening the ad at the same time in the Alps.

AI advertising algorithms can also deliver more personalised product recommendations to users. These go beyond purchase history and previous actions and consider the activities of other customers with similar characteristics for predicting the next step. 

3. AI-Based chatbots in conversational display ads 

AI-based chatbots have introduced a high degree of automation in various business processes while considerably improving customer-facing staff’s efficiency. Users also prefer 24/7 support and self-service options offered by chatbots, improving the customer experience significantly. However, chatbots can also be used in advertising with the rise of conversational display ads.

Google has recently rolled out the conversational ad format through a platform called AdLingo. It would help if you had an existing conversational bot to leverage the ad format that allows users to engage with a chat feature displayed within your ad directly. Thus, users can ask questions and receive answers without needing to visit a site, potentially increasing your display ads’ engagement.

4. Implementing predictive analytics into your CX strategy

Today, consumers expect companies to anticipate their needs and make relevant suggestions before they even make contact. Until now, most customer experience strategies were based on customer analytics, derived from the past behaviour of users. However, AI makes it possible to replace past insights with future predictions as your CX drivers to give users what they need even before they express their requirements.

Conclusion

AI can transform customer experience in multiple ways by personalising every aspect of the user journey. Besides, AI-optimised user journeys can be used to analyse user behaviour and drive actionable insights to understand user intent further and accurately predict their requirements for greater marketing success.

We strongly believe that AI is the competitive differentiator that marketers need in their arsenal for success. With colossal amounts of data at their disposal, firms investing in AI-based tools can effectively utilise this data to curate personalised experiences for their clients and generate more business and loyalty in the long run.