By Blake Morgan
Customer Experience Futurist, Author, Keynote Speaker
Jan 24, 2019
Customers crave personalization. 73% of consumers prefer to do business with brands that take their personal preferences into account. Investing in personalization is good for brands. Research from McKinsey found that brands that excel at personalization deliver five to eight times the marketing ROI and boost their sales by more than 10% over companies that don’t personalize. Personalization can be an overwhelming and time-consuming task, but it’s made simpler through artificial intelligence. In fact, it’s never been easier to understand consumers and create personalized offers with AI.
Here are seven of the best examples of using AI to improve personalization.
1. Thread Uses AI To Tailor Fashion Recommendations
Most customers would love a personal stylist, especially one that comes at no charge. But staffing enough stylists for 650,000 customers would be expensive. Instead, UK-based fashion company Thread uses AI to provide personalized clothing recommendations for each customer. Customers take style quizzes to provide data about their personal style. Each week, customers receive personalized recommendations that they can vote up or down. Thread’s AI algorithm uses that data to find patterns in what each customer likes and tailor its recommendations. The more data the company receives from a customer, the better the recommendations.
2. Sesame Street Personalizes Early Learning With AI
Personalization can also extend to kids. Most parents have felt the overwhelming feeling of wanting to teach their young children but not knowing where to start. Sesame Street created the first AI-powered vocabulary learning app, which starts by observing a child’s vocabulary and reading level. It uses that data to recommend personalized learning exercises. As the child progresses, the app updates its recommendations to keep up with their pace. Schools that have adopted the technology report that their students saw large jumps in their vocabulary and reading ability.
3. Hilton Hotels Uses AI Robot to Greet Guests
Hilton Hotels uses a robot concierge named Connie to make guests’ experiences as personal and enjoyable as possible. The two-foot-tall robot stands in the lobby to greet guests and answer questions. With its natural language processing ability, Connie can learn about guests and provide personalized recommendations of places to visit and restaurants to try. The robot can also point guests in the right direction for various hotel amenities to meet their needs.
4. Under Armour Personalizes Fitness Recommendations With AI
Under Armour is about more than clothes—it’s about helping customers be active and healthy. Its Record app uses AI to collect health information on physical activity, sleep, and diet to make personalized recommendations on workouts and health goals. The app also serves as a personal trainer and can analyze workouts to make sure they are as effective as possible. Under Armour’s use of AI helps customers get the personalized health recommendations they crave.
5. Rare Carat Creates First AI-Powered Jeweler
Customers looking to buy a diamond can now turn to Rocky, the world’s first AI-powered jeweler. Diamond website Rare Carat uses AI to compare prices of diamonds across numerous retailers to find the best deal for each customer. Rocky walks customers through the entire process to provide a similar online experience to what customers would get in a brick-and-mortar jewelry store. The AI algorithm takes many diamond factors into account and shows customers the trade off for different factors, such as sacrificing clarity for a lower price. With Rocky, customers can feel confident they’re getting the right diamond for their needs at the best price.
6. Macy’s On Call Directs Customers In Store
Artificial intelligence can also be used to personal the in-store experience. Macy’s uses IBM Watson AI technology to power its smartphone-based assistant Macy’s On Call. When a customer enters the store, they can start chatting with a digital assistant on their phone. The chatbot asks questions to direct the customer’s shopping experience and provide recommendations and directions to items around the store. If the bot senses the customer is getting frustrated, it will alert a human associate to intercept the customer as soon as possible.
7. Levi’s Creates Virtual Stylish With AI
Finding the perfect pair of jeans can be a frustrating experience, but Levi’s recently introduced an AI-enabled chatbot to help find the perfect fit. Virtual Stylist uses natural language processing to find out what each customer is looking for in a pair of jeans. The bot learns about each customer’s lifestyle and fit preferences. That information is combined with actual training that human stylists receive to provide accurate recommendations. After the chatbot recommends a pair of jeans, customers can share it with friends to get their opinions.
AI is a powerful tool in providing unique, personalized experiences for customers. These examples show that AI can be used in a huge variety of situations across all industries. With this growing technology, we’re only scratching the surface of personalizing customer interactions.