Competing on price and product quality isn’t enough. Businesses also need to offer a smooth and satisfying digital experience. And personalized messaging plays a big role in achieving that. EDC’s Conversational AI solution helps brands personalize interactions across multiple channels, creating a more relevant and rewarding customer experience while boosting sales.
Understanding the value of personalization
- 71% of consumers expect personalized interactions. 76% are frustrated when brands don’t deliver (McKinsey).
- 70% of shoppers say that a brand’s understanding of their personal needs directly impacts their loyalty (Sender).
- 91% of people are more likely to shop with brands that provide relevant offers and recommendations (Accenture).
In effect, personalization is now central to customer satisfaction and loyalty.
What is personalized messaging?
Personalized messaging uses detailed data to customize conversations based on behavior, preferences, and habits. To get this right, businesses have to understand their customers and what they need and desire. Conversational AI contributes to this understanding by collecting and analyzing critical information, such as consumers’ past purchases, browsing history, and what items they abandoned in the cart, and using it to inform messaging.
Personalized messaging in practice
Product recommendations are one example of personalized messaging. They enable businesses to give customers suggestions about products likely to appeal to them, increasing opportunities for cross-selling and up-selling. Crucially, these personalized recommendations can be delivered at the most potent moments in the customer journey and via the most appropriate channel for that customer.
The product recommendation example is also valuable because it helps us understand the individual components that comprise effective personalization.
- Subject matter - messaging content must be customized to each individual's needs, preferences, and desires.
- Moment of delivery - the message must be delivered at specific moments in the customer journey.
- Mode of delivery - messaging must also be delivered via the most appropriate and effective channel.
How to personalize messaging
Personalization depends on a business’s ability to collect and interpret data about consumers. It ranges from relatively simple information, such as their name and historical purchases, to advanced data about consumer intent. The former enables us to add satisfying personal touches to interactions. It also sometimes contributes to our understanding of intent. For instance, if a customer makes a complaint about a recent purchase and we know their purchase history, we can probably identify the precise product they want to discuss.
However, a deeper understanding of consumer intent requires advanced Natural Language Understanding (NLU) technology, like that found in EDC’s Conversational AI solution. The Conversational AI solution analyzes conversational data, identifies patterns in interactions, and learns from both explicit and implicit signals. This enables it to accurately determine customer intent and facilitates more effective and targeted messaging.
Personalized messaging at scale
The final piece of the puzzle is deploying personalized messaging on the scale required by modern marketing and customer support systems. Here, Conversational AI plays a critical role in automating personalized messaging and enabling businesses to reach large numbers of potential and existing customers cost-effectively. Providing businesses with tools to understand user preferences and intent, automate personalized messaging across channels, and facilitate meaningful customer interactions helps drive customer acquisition, maximize revenue, and reduce costs. Ultimately leading to higher customer satisfaction.
To learn more, contact our expert team today or explore our Conversational AI solution.
