AI and marketing personalization: the perfect duo

The concept of marketing personalization and even hyper-personalization The digital economy is almost as old as humanity itself. We have always preferred to do business with people and institutions we know well, companies we trust and that understand us. We like to buy from familiar people because we trust them, and we prefer to buy from companies that have a personal connection with us because they are well-positioned to understand our needs. There is a connection on both sides.

Brands already fulfill the first part of the equation: we buy from them because we have developed a relationship with them, so we trust them. Unfortunately, the second part of the equation – the knowledge that companies have about us – has been left out, but it is coming back.

From the local bookstore to the big chains

In the old days, people frequented the small corner bookstore because the owner knew them, their reading tastes, their previous purchases, and their favorite genres. Most of the time, he had the perfect recommendation.

As the owner, she gave us a discount, maybe a treat, and provided warm and friendly service. The butcher, the salesman, and many other small businesses provided us with the same level of service. These human interactions were enjoyable and rewarding, and we came away satisfied with the purchase and the shopping experience.

Then came industrialization and economies of scale. Large chains offered the same products and services, but at a lower cost. Small businesses couldn’t compete and most closed their doors. Shopping experiences mutated and became impersonal and artificial. You became an anonymous shopper. The focus shifted even more to the brand, but the conversation eventually became a one-way monologue between the brand and its customer. Marketing Personalization was non-existent.

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The digital revolution and the return of personalization

Then the Internet revolutionized everything. It brought e-mail, e-commerce, social networks, smart mobile devices, cloud computing And big dataCompanies immediately saw return on investment I started trying to offer these experiences on a larger scale. It started small, maybe with a personalized email with the customer’s name on it or a text message thanking me for a recent purchase.

Within businesses, the situation was chaotic and transformative. Marketing departments, accustomed to a one-way approach to communication, were now confronted with hard data and analytics. This hard data began to show that campaigns were often failing, that marketing investments were not delivering the returns they expected, and, most importantly, that consumers were expecting a different tone and pace of communication.

At the same time, customer journeys have evolved from linear to complex across a myriad of new channels and data points. Customer experience has become a reality, and invest in This generated feedback.

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Personalization and technology meet

The digital age brought together two departments that used to occupy the farthest floors of the building: marketing and IT. It became clear that to deliver a better, more personalized experience, IT needed to invest heavily in new platforms and understand how to use them, while marketing needed to imagine and conceptualize these new personalized experiences. It took—and still takes—time for both sides to figure out how to work together.

At the same time, new platforms and vendors have emerged. Sophisticated content management systems, analytics platforms, testing and targeting tools, a new surge in CRM systems, asset managers, campaign orchestration platforms, and CDPs, among others. The ecosystem has become cluttered and complex to navigate for both parties, IT and marketing.

At first, it was the big brands that were able to start behaving like neighborhood retailers, with some added advantages that data and technology were able to provide them. They knew their customers, their tastes, their past purchases, their geographic location, their visits to other stores, their waking hours and even their daily heartbeats. At some point, they knew too much. It was scary and dangerous. Governments stepped in with new regulations. This added even more complexity, especially for brands with multiple geographic areas.

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The AI ​​revolution in marketing personalization

And then, the latest addition to the list: artificial intelligence. It started out with a lot of hype and as a fascinating toy, but it has now quickly become the cornerstone of marketing personalization efforts. AI proves its value by reducing production costs. This allows smaller brands to generate the amount of content and resources needed to deliver true 1-to-1 personalization.

Before AI, any brand that wanted to personalize their products to this level would have had to have an army of developers, designers, and copyright holders. Plus, AI allows the store owner to add a personal touch by offering that candy or witty remark.

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The Future of Personalization

This is where we are today. AI is revolutionizing marketing, business, and life. There are many unknown developments on the horizon that are difficult to grasp today.

Things are changing fast and the pace is only getting faster. Businesses that want to thrive in this new reality must recognize marketing personalization as a critical business driver—not because of its significant benefits, but because it will be the only way to stay relevant.

It’s not just about having the right personalization tools; it’s about truly understanding the purpose of those tools: to better serve customers, understand their needs, care for them, and promote mutually beneficial interactions.

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