AI has reached many aspects of our day-to-day life. Right from virtual voice assistants like SIRI, Alexa, etc. AI has become a part of our routine. Not just this, AI is now an essential part of the shopping and retail business. It doesn’t just assist retailers to provide a better customer experience but also helps shoppers to get what they want at the right time. And especially in this area, AI-enabled segmentation becomes even essential.
With the use of AI, retailers will be able to customize products for each and every shopper who visits their online store. The AI analyses all available customer behavioral data and determines — at a granular level — what each shopper’s preferences and intent are. It then makes real-time changes to an entire online store, particularly for that shopper.
Unlocking AI-enabled Segmentation
Segmented marketing can improve your productivity and the effectiveness and ROI of your marketing campaigns overall. A report by email marketing software company Campaign Monitor found that there was a 760% increase in revenue from segmented campaigns.
When we talk about using artificial intelligence for segmentation, we usually mean one of two things. The first would be to employ natural language processing on text — such as data from social media or blogs — to determine a customer’s values, emotions, and sentiments and apply segmenting rules accordingly. The second use is machine learning, which takes segments from smaller data sets and uses lookalike analysis to find people who have those qualities in a bigger database of consumers.
Read more on How Retail Analytics can Boost your Sales
Marketers may use AI-based segmentation to get more specific with their segmentation. Marketers nowadays have a plethora of options for narrowing down target segments. They can use AI-based segmentation to layer on (and scale-up) variables like:
- Psychological driver
- Personal values
- Media consumption
- Brand affinity
- Who values loyalty programs
- Their propensity to buy a given product in the next year
- Where they shop
- The amount of time they spend online and offline and where they spend it
- Product attributes they value, including everything from apparel to household items
AI-based segmentation has numerous benefits throughout the client’s lifecycle, from acquisition to retention. This form of segmentation, when done effectively, will drive your marketing strategy, influence your messaging and product development, and boost your campaign’s overall success rates.
