POUR TOUT SAVOIR SUR L'INTELLIGENCE ARTIFICIELLE
Le Blog SkalUp
Product customization has become a major challenge for companies seeking to differentiate themselves and meet the ever more specific expectations of their customers. With the advent of artificial intelligence (AI), this personalization takes on a new dimension, making it possible to offer ultra-personalized, scalable and efficient experiences.
Through its data analysis and machine learning capabilities, AI enables businesses to deliver tailored experiences to their customers, improving satisfaction, retention and sales.
In this article, we'll explore how AI is revolutionizing product personalization for brands and consumers, focusing on the AI techniques that are transforming this field.
AI at the heart of product personalization
Product personalization using AI essentially relies on two key technologies: machine learning et predictive analysis. These technologies allow businesses to better understand their customers by analyzing large amounts of data and predicting their future behaviors, preferences and needs.
AI is no longer limited to basic approaches like similar product recommendations. Today, it is able to offer fully configured products, adapted to the user, going well beyond simple suggestions. This approach is based on a detailed understanding of users and their purchasing journey, often in real time.
Machine learning: from product recommendations
to tailor-made products
Machine learning algorithms play a central role in automating personalization. For example, e-commerce platforms like Amazon and Netflix use recommendation algorithms that analyze user behavior (purchase history, products viewed, etc.) to generate personalized suggestions.
But these systems can go further: companies like Nike have integrated intelligent configurators that allow customers to design their own products (shoes, clothing) based on their specific preferences (colors, materials, sizes), optimizing the customer experience. 'purchase.
In this context, SkalUP, for example, offers AI-based product configurators, capable of automatically adapting to user preferences in real time. Using supervised and unsupervised learning algorithms, SkalUP enables its clients to offer a unique and fully personalized user experience, while maximizing conversions.
Innovative use case: personalization of clothing with AI
Take the example of a fashion brand that uses AI to personalize clothing based on each customer's style preferences. By analyzing fashion trends, local weather data and user purchasing behavior, AI can offer tailor-made suggestions. She even goes so far as to personalize the sizes, colors and fabrics adapted to the customers’ body shape.
Today, AI allows businesses to create ultra-personalized experiences by anticipating consumer needs. Among the most powerful tools, AI-based predictive recommendations stand out.
One of the main challenges of personalization is anticipating customer needs before they even express them. This is where predictive analytics, powered by AI, becomes crucial. Sophisticated algorithms are capable of processing millions of data points to identify trends, behavioral patterns and weak signals that would help predict future customer needs.
It is now possible to anticipate individual customer preferences using algorithms capable of processing and analyzing billions of data points. This technique makes it possible to offer personalized offers, improve the conversion rate and strengthen customer loyalty.
Artificial intelligence (AI) plays a crucial role in product personalization by transforming complex data into actionable insights. Using AI, businesses can create tailor-made experiences for each customer, offering products and services that precisely meet their tastes and needs.
Data: the key to predictive recommendations
With the rise of e-commerce and digital applications, businesses are generating huge volumes of customer data, including past purchases, social media interactions, site searches and browsing histories. AI algorithms, particularly those based on machine learning, are capable of combining this data to anticipate future consumer behavior.
Concrete example: Amazon and its predictive recommendations
An emblematic example of predictive recommendations comes from Amazon. This e-commerce giant uses sophisticated algorithms to analyze each customer's purchase data, taking into account things like order history, product views, and even reviews left by other similar customers . Amazon's system then suggests products that, according to its AI, have a high probability of being purchased by the user.
Key figures:
Case study: Stitch Fix and its stylistic AI
Stitch Fix, an American online styling company, relies entirely on personalized AI recommendations. Their model combines predictive algorithms and human expertise to offer their customers boxes of carefully selected clothing. AI analyzes user preferences based on their profiles, but also through answers to specific quizzes, their purchase history, and even the items they return.
Result: 85% of Stitch Fix customers find pieces that perfectly match their tastes thanks to AI.
Benefits for the company:
Starbucks: an example of large-scale personalization
Finally, let’s take the example of Starbucks. Using AI, the company can not only personalize promotional offers sent to customers based on their past preferences, but also anticipate what they might want to consume in the future, based on the weather, time of day or their previous habits. This strategy helps maximize sales while strengthening customer engagement. Starbucks has distinguished itself by intelligent use of artificial intelligence (AI) to personalize both its products and its marketing campaigns, creating a highly individualized customer experience.
This coffee giant uses data from its loyalty program, which has more than 31 million active members in the United States in 2023, and its mobile application, downloaded by millions of consumers around the world. Starbucks collects data on purchases, consumption habits and individual preferences through this channel. This data is analyzed via AI algorithms and then used to recommend personalized drinks or snacks to the user in real time via the app.
An internal Starbucks study showed that this personalization of product recommendations increases the conversion rate of its promotions by 30%, compared to a non-segmented approach. AI thus makes it possible to offer a tailor-made experience, encouraging customers to come back more often and try products that suit their tastes.
Personalization at Starbucks doesn’t stop at products, it also extends to marketing campaigns. By analyzing data such as consumption times, local weather conditions or even local events, Starbucks adapts its offers in real time. The brand deploys targeted marketing campaigns, offering promotions based on each customer's tastes or local events. For example, a customer who prefers iced coffee will receive a special offer on their favorite product on hot days. By combining these techniques, Starbucks strengthens customer engagement and optimizes sales.
According to reports from the brand, these personalized campaigns led to an increase in engagement of 150% compared to standard campaigns, as well as an increase in mobile sales of 16% in targeted segments.
The impact of AI and personalization on Starbucks' bottom line is significant. According to Kevin Johnson, former CEO of the brand, personalization via AI has contributed to a 5% revenue growth during certain periods. The company's "Reinvention" strategy, focusing on digital innovation and personalized experiences, is expected to drive long-term revenue and earnings growth, with forecasts of up to 7% global comps growth et 15-20% earnings growth by FY24 (Sources : Starbucks Investor Relations, Starbucks Stories).
By combining customer data and AI, Starbucks proves that personalization is an essential lever for improving the customer experience while growing sales.
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