Personalized marketing with AI: Targeting customers more accurately in your online store

Today’s AI technologies can collect, analyze, and process massive data, from customer demographics to market trends. They also turn this data into actionable insights, helping companies tailor their marketing efforts to the needs of each audience segment.

Let’s say you want to create a site with specific features, such as a minimalist design, parallax scrolling, and interactive menus.

One solution is to use an AI website builder. The tool will generate a personalized website that checks all the boxes and can be further customized as needed. You may change its layout, switch to a different font, upload new images, or rearrange the sections with just a few clicks.

This level of personalization wouldn’t be possible without AI—unless you’re willing to spend thousands of dollars for web design services.

Go one step further and use AI to personalize your marketing. Here’s what you should know about it and how to get started.

The role of AI personalization in eCommerce

According to a McKinsey report, companies that get personalization right generate 40% more revenue than the average business. This makes sense, considering that 61% of consumers expect personalized interactions.

AI can help with personalization due to its ability to learn from data and predict user behaviors. For instance, Amazon’s AI algorithms use customer data, such as browsing history and past purchases, to suggest relevant products.

Other eCommerce brands have AI systems that allow them to:

• Create personalized website content
• Optimize their email marketing campaigns
• Understand customer sentiment
• Adjust product prices based on customer profiles
• Create highly targeted ads
• Guide customers in their buying journey
• Identify opportunities for upselling and cross-selling

A good example is Sephora. Its marketing team uses AI to help customers choose the right beauty products based on their skin type, eye color, and other criteria.

Spotify deploys this technology to recommend and play songs that match your musical taste, whereas Whole Foods has an AI-powered chatbot that assists customers.

Let’s discuss some of these use cases and how they can benefit your business.

Make custom product recommendations

A survey of 89 executives found that more than 60% use AI to make custom product recommendations, per Coresight Research. This feature can increase average order value and boost customer satisfaction, resulting in higher profits.

Let’s assume someone visits your website to buy a pair of Nike sneakers.

The AI will analyze their browsing behavior, preferred shoe size, and other data and then recommend similar or complementary products. It may also display the most popular sneakers in your store or specific models purchased by customers with the same shoe size.

As a result, the buyer will stay on your site longer and discover products they may not have otherwise known about. This can lead to a better shopping experience, higher conversions, and reduced churn.

Deliver dynamic content

Marketers can also use AI to display content that changes based on who is viewing it. The AI will analyze your customer’s data, such as their location, and then generate personalized ads, email newsletters, or website content.

This marketing tactic drives engagement and can enhance the customer experience, resulting in more sales. Depending on how it’s used, it can also create a sense of urgency and compel prospects to take action.

For instance, Netflix displays the most popular movies based on the location of the streaming device. If you access its website from the U.S., you’ll view different titles than someone streaming from Sweden or Germany.

Create highly targeted ads

AI-powered advertising tools collect and analyze user data for behavioral targeting. This allows them to serve personalized ads, resulting in higher ROI and lower costs.

This technology can also optimize and automate bidding, improving ad spend efficiency. And, as mentioned earlier, it can generate dynamic ads for different audiences with distinct needs.

An example is AdCreative.ai, an online tool capable of generating highly customized ad copy, banners, videos, and photoshoots. Bïrch, on the other hand, enables marketers to automate campaign management, from ad creation to bidding and reporting.

Personalize your emails

According to the Coresight Research survey, nearly 80% of executives deploy AI for email personalization. The latest AI tools can create custom email content based on user data—and generate thousands of emails in minutes. They’re capable of automating follow-ups, reporting, list building, and other email marketing activities.

Think about your favorite clothing brands. Chances are, they send you personalized emails on your birthday, around the holidays, or when you abandon your cart. That’s an example of AI in action.

You can also use AI tools to automate audience segmentation, optimize email frequency, or create content blocks targeted at specific users.

For instance, an email aimed at repeat buyers may contain loyalty rewards, while one targeting new customers could include first-order discounts.

Assist customers in their buying journey

64% of the executives surveyed by Coresight Research said they deploy AI chatbots. This technology enables companies to automate customer support and deliver personalized experiences.

AI-powered chatbots and virtual assistants can guide shoppers in their choices by:

• Answering questions about your products or services
• Offering tailored recommendations
• Assisting with order tracking, returns, and exchanges
• Sending abandoned cart reminders
• Collecting feedback for future interactions

And much more.

For example, Capital One’s chatbot, Eno, acts as a personal assistant, helping customers track their spending, check their transactions, and pay their bills. It can even generate virtual credit card numbers and notify users of security issues.

Whole Foods’ chatbot, on the other hand, is able to suggest recipes and meal ideas. Customers can also ask the bot to help them find nearby stores.

Another advantage of using chatbots is their ability to collect customer data and send it to your CRM. This allows you to better understand your target audience and further personalize your marketing efforts.

Adding a chatbot to your site is quick and easy if you choose one of the best website builders out there. For instance, you can install the Wix AI Chat Assistant from your dashboard in seconds. After that, customize its appearance and settings to reflect your brand’s voice.