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Home»Marketing»Marketing 2024: AI and hyper-personalization
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Marketing 2024: AI and hyper-personalization

The Elite Times TeamBy The Elite Times TeamJanuary 17, 2024No Comments8 Mins Read
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Improving customer experience with AI, AR, and smart mirrors

brittany potter

Future technologies that may once have seemed like pure fantasy, such as self-driving cars, brain chips, and robotic assistants, are moving closer to our reality every day. As a result, I became attracted to science fiction movies. I like to think about the lessons and insights these fictional stories can offer about future interactions with real-world technology (hello AGI!).

Large holographic display in a shopping mall.  Showcasing cutting-edge technology in the future retail environment, powered by AI using Midjourney.
Giant holographic display in shopping mall generated by AI using Midjourney

I was a kid when most of the classic futuristic science fiction masterpieces were released, so I finally got the chance to experience many of them for the first time 😁🤖.

Last year, my parents and I streamed Minority Report, the 2002 sci-fi thriller directed by Steven Spielberg. The film is set in a dystopian future, and features a special police unit called “PreCrime.” This “Pre-Crime” unit uses the precognitive abilities of three psychics called “Pre-Cogs” to prevent murders in advance.

As Tom Cruise’s character tries to move unnoticed through a busy shopping mall, personalized billboards and hologram ads call out his name, trying to sell him everything from clothes to cold beer. You will be exposed to attack. Not only that, but the ads tap into his particular interests and preferences. This is the ultimate form of targeted advertising. And while I don’t think we’re anywhere near his PreCrime unit, there were parts in the movie that seemed to be an accurate representation of where we’re headed. hyper-personalized advertising.

Photo of a glowing blue holographic shopping assistant resembling a woman in a modern retail store. The greeting
Holographic shopping assistant generated using Dall-E 3

Hyperpersonalization uses real-time data to create highly customizable experiences for your customers. Imagine walking into a Minority Report-style store where everything is set up just right, from the products on display, pricing, and promotions to the lighting, music, and service. your specific needs and preferences. Personalization may have been used before, but most retailers included basic customer information such as name, age, and location.

How does hyper-personalization work?

Hyper-personalization leverages technologies such as AI and machine learning to analyze behavioral data. This technology allows retailers to create highly personalized and meaningful interactions to improve customer experience and engagement.

I’ve been lucky enough to stay in several luxury hotels and the experience is always great. One of my most memorable and rewarding hotel stays was in the Maldives. As soon as I stepped off the plane, all the hotel staff greeted me with drumming and singing, which instantly made me feel special. The staff greeted me by name, gave me a flower necklace, and showed me to my room with a chilled glass of champagne. Another chilled bottle of champagne was waiting in my room with fresh strawberries and a kind handwritten note. The staff took the time to bring the donut pool floatie, which I had casually mentioned on Instagram as a favorite, to my room. They created a personalized experience with attention to detail. Are expected needs.

My professional experience in managing influencer campaigns reflects this approach. We made sure to include a personalized, handwritten note during our product seeding campaign. For Mother’s Day, I went a step further and sent flowers to my influencer mom. This has nothing to do with our brand, but it made a lot of sense. These actions were meant to create a genuine connection with the influencer and show them that we value them as individuals.

The problem for retailers is that it’s difficult to provide that level of detail and care at scale. until now. We may not be able to be greeted with songs, champagne, or flowers every time we walk into a retail store (and who would?), but thanks to advances in AI and machine learning, we can… We are entering an era where we can receive individualized attention. It becomes part of everyday consumer interactions.

yes.People are Really Like feeling seen and valued. Despite data and privacy concerns, personalized experiences can have a significant impact on positive shopping behavior. Research shows that customers are drawn to retailers that recognize their name, recommend products based on their past purchases, and know their purchase history.

A smartphone showing an email with the header
Predictive shopping and personalized recommendations generated by DALL-E 3 appear on your phone

To create highly customized experiences, brands must use behavioral and real-time data to deliver personalized experiences.

The importance of data collection in understanding customer preferences and behavior

Anyone who works in marketing knows how important data is. Data allows you to understand your customers at a granular level, including their likes and dislikes, purchasing patterns, and their most indecisive moments. Customer experience no longer has to be one-size-fits-all. We’re moving beyond the general realm of “If you bought X, he also bought Y” to a world of “Hello, we thought you might like this specially selected item. doing.

Let’s summarize:

data…

🔍 Helps identify customer preferences
🛒 Uncover purchasing patterns
💡 Uncover behavioral trends

For many…

🎯 Precise targeting
✨ Creating a unique catering experience

the result…

🤝 More relevant ads
💬 Increase engagement rate
🔗 Improve click-through rates
💰High ROI

Can you think of an example where a machine algorithm predicted what you wanted? in front Did you want it? Maybe it was a product you researched, and suddenly an ad for a similar product popped up in your Instagram feed. Or you’re scrolling through Netflix and see a “98% match” to a movie you had no idea about. Did you know that 35% of conversions on Amazon come from recommendation engines? Our devices know more about us than we think 😜!

One of my personal favorites is Spotify. Their approach to music curation is truly top notch. Spotify creates personalized playlists like Discover Weekly, Release Radar, and AI DJ by analyzing our listening habits, preferences, and even the time of day we listen to music. Features like Spotify Wrapped have become a cultural phenomenon. In fact, today I shared my Spotify “Daily List” on my Instagram Story (FYI: “Daily List” is a fairly new feature that reflects your music tastes and mood at different times of the day. ). My boyfriend and I recently tried out a “blend” playlist that takes each other’s listening habits into account and creates a Venn diagram of songs. Spotify’s hyper-personalization strategy now goes far beyond just music recommendations and has become part of our identity and social interactions. Hyper-personalization resonates with people, which is probably why so many companies are trying to copy Spotify’s model.

If you look at the screenshot of my Spotify Wrapped 2023, you can see that my top song was “Wish On An Eyelash Pt.” 2 Mallrat & the Chainsmokers
Screenshot of My Spotify Wrapped 2023

Adaptive retail is a broader concept that includes hyper-personalization, but also the entire customer journey. His 2024 CES keynote at Walmart provided a prime example of how major retailers are implementing adaptive retail. While hyper-personalization focuses on experiences and offers tailored to individual consumers, adaptive retail aims to create an integrated and seamless retail experience.

Retailers are increasingly becoming technology companies that also sell products. New technologies are enabling ecosystems that are responsive and intuitive, and retailers are expected to deliver experiences as unique and dynamic as the customers themselves.

Walmart’s keynote speech introduced technologies such as AI, GenAI, and AR that the company has introduced into its ecosystem. This includes a GenAI-powered search experience that predicts what users want and provides more relevant search results, and a beta social feature called Shop with Friends that combines social media and AR shopping. This includes innovations such as commerce platforms. These advances demonstrate how Walmart leverages technology to create a seamless and flexible shopping experience from start to finish.

🧠🪞Smart fitting room with interactive mirror that suggests items based on previous purchases.
📱👗 With AR-powered apps, you can virtually try on clothes and see how furniture will look in your home.
💳 ❤️ Personalized loyalty program with AI-powered suggestions for optimal reward redemption.

Woman operating smart mirror in modern fitting room. Her mirror displays a variety of clothing options overlaid on her own reflection, showcasing a high level of personalization in retail.
Futuristic changing room smart mirror generated using Midjourney

While the above technologies may seem far-fetched to some, there are actually some pretty futuristic trends that are changing the field.

Integrating artificial intelligence and augmented reality (AR) or virtual reality (VR) in personalized experiences

AI, AR, and VR are already enabling companies like Macy’s, Manolo Blahnik, and Adidas to create immersive digital experiences for their customers. Perhaps more personalized experiences and highly interactive digital experiences will emerge.

Voice assistants and chatbots for seamless customer interactions

If you’ve ever experienced the frustration of having to talk to your company’s AI chatbot about a problem, you probably know the feeling of wanting to pull your hair out. Fortunately, advances in natural language processing (NLP) are making models more efficient and providing more immediate, personalized, and seamless customer service experiences. These systems are becoming better able to handle more complex queries and provide more accurate and useful information.

Conclusion – The future of retail

As we’ve seen with e-comm, technology will be central to the evolution of the retail industry. Retailers will use technology to enhance the shopping experience and anticipate customer needs in ways never seen before. Retailers who leverage new technology to create more personalized, efficient, and engaging shopping experiences will succeed.

thank you for reading! Want to learn more about how technology is changing fashion and retail? Subscribe to our newsletter. JACQUARD. You can also follow me on Twitter @brittanynpotter Or contact us at workwithpotter@gmail.com.



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