Current Article:

10 AI Personalization Examples for Marketing 2024

10 AI Personalization Examples for Marketing 2024
Categories Digital Marketing

10 AI Personalization Examples for Marketing 2024

AI is revolutionizing marketing personalization in 2024. Here’s what you need to know:

  • AI analyzes customer data to deliver tailored experiences at scale
  • 71% of consumers expect personalized interactions
  • Top companies are seeing major wins with AI personalization

Key examples:

  1. Netflix: Custom content suggestions (80% of views from AI recs)
  2. Amazon: Product recommendations (35% of sales)
  3. Starbucks: Personalized app features
  4. Sephora: Virtual makeup try-on
  5. Spotify: AI-created playlists
  6. PayPal: Smart shopping tips
  7. Domino’s: AI ordering helper
  8. Nike: AI shoe designer
  9. Instacart: AI grocery assistant
  10. Coca-Cola: AI-made ads

Quick comparison of AI personalization approaches:

Company AI Application Key Benefit
Netflix Content suggestions 80% of views from recs
Amazon Product recs 35% of sales from recs
Starbucks App personalization 13% YoY rewards growth
Sephora Virtual try-on 8.5M+ app visits
Spotify Custom playlists 30% of plays from AI

AI personalization is becoming essential for businesses to stay competitive in 2024 and beyond. The key is using customer data ethically to create tailored, valuable experiences across channels.

What is AI Personalization in Marketing?

AI personalization in marketing uses AI to customize content, products, and experiences for each customer. It’s like having a super-smart assistant that predicts what customers want.

Here’s the gist:

  1. AI crunches tons of customer data
  2. It spots patterns and makes predictions
  3. The system serves up personalized recommendations in real-time

Why care? Because customers now expect tailored experiences. Generic stuff just doesn’t work anymore.

AI personalization brings:

  • More engagement
  • Higher sales
  • Better customer loyalty

Real-world wins:

"Our AI-powered app suggestions boosted average order value by 17% in just three months", – Kevin Johnson, Starbucks CEO

Company AI Tactic Result
Jopwell AI email campaigns 30% open rate (vs. 21% average)
Amazon Product recommendations 35% of sales from personalized suggestions
Netflix Custom content suggestions 75% of viewer activity from recommendations

Small businesses can use AI too:

  • Segment customers better
  • Predict future purchases
  • Create dynamic website content
  • Optimize email timing

Start small. Focus on one area, like product recommendations or email personalization. Test, learn, grow.

Remember: AI personalization doesn’t replace human creativity. It gives marketers superpowers to deliver the right message to the right person at the right time – at scale.

Netflix‘s Custom Content Suggestions

Netflix

Netflix’s recommendation system is AI personalization at its finest. It uses a smart algorithm to suggest shows and movies you’ll love.

How does it work? The system:

  • Looks at what you’ve watched, rated, and how long you’ve watched
  • Checks out what similar users like
  • Considers things like genre, actors, and when it was released
  • Updates as you watch

Get this: Over 80% of what people watch on Netflix comes from these AI suggestions.

But it doesn’t stop there. Netflix also:

  • Makes custom categories just for you
  • Changes thumbnails and trailers based on what you like
  • Tweaks suggestions based on when and how you’re watching

All this personalization? It saves Netflix about $1 billion a year by keeping people watching.

What How Much
Content found through suggestions 80%
Time saved for users daily 1,300+ hours
Netflix originals that succeed 93%

Netflix shows us what AI can do for user experience. By crunching tons of data, they keep viewers hooked.

"Our brand is personalization." – Ted Sarandos, Head of Content at Netflix

What can marketers learn?

  1. Use AI to understand user behavior
  2. Update suggestions in real-time
  3. Test different ways to show content

2. Amazon‘s AI Product Recommendations

Amazon

Amazon’s AI recommendation engine is a beast. It’s been around for over 20 years and drives 35% of their sales. That’s huge.

So, how does it work? It’s pretty smart:

  • Watches what you do (buys, views, searches)
  • Matches products using item-to-item filtering
  • Shows you personalized stuff all over the site

But it’s not just "you might like this" suggestions. Amazon creates a custom shopping experience for everyone:

Where What
Homepage Unique products based on your real-time behavior
Product Pages "Bought together" and "Others bought" sections
Checkout "Recently viewed" and "Saved for later" items

And it works. Users spend about 7 minutes per visit, click through 9 pages, and Amazon’s bounce rate is only 35% (way better than Walmart‘s 50% and Target’s 45%).

They’re not stopping there. In 2023, Amazon added generative AI to spice up product descriptions. Mihir Bhanot, their Personalization Director, says:

"If the primary LLM generates a product description that’s too generic or misses key features for a specific customer, the evaluator LLM will flag it."

This means product info is tailored to what YOU care about.

Want to use AI recommendations in your marketing? Here’s the quick version:

  1. Analyze data in real-time
  2. Use collaborative filtering to find similar products
  3. Personalize EVERYTHING (homepage to checkout)
  4. Keep improving your AI models

3. Starbucks‘ Personalized App Features

Starbucks

Starbucks is crushing it with AI personalization in their mobile app. Their "Deep Brew" tech powers a bunch of cool features that make your coffee run feel tailor-made.

Here’s the scoop on how Starbucks uses AI to keep you hooked:

  • The app learns what you like and suggests drinks you might love
  • You get personalized deals based on where you are or your go-to store
  • A chatbot takes your order, no matter how complicated
  • Your loyalty perks? They’re based on how you spend

Check out these numbers:

Metric Value
US Rewards Members 34.3 million
Year-over-Year Growth 13%
Mobile Order & Pay Transactions Over 30%

CEO Laxman Narasimhan says:

"Starbucks Rewards members develop a routinized long-term relationship with our brand that increases both tickets and transactions."

Why does it work? The app nails the sweet spot between easy-to-use and personalized. Take the chatbot – it can handle orders like:

"Grande iced sugar-free vanilla latte with soy milk"

This AI-powered personalization keeps customers coming back for more.

4. Sephora‘s Virtual Makeup Try-On

Sephora’s Virtual Artist app is shaking up makeup shopping. This AI tool lets you test thousands of products from your phone.

Here’s the deal:

  • Scans your face with your phone camera
  • Applies makeup virtually in real-time
  • Lets you switch between shades and products instantly

Check out these numbers:

Metric Value
Shades tried on 200 million
App visits Over 8.5 million
Products available 20,000+

Why it’s a big deal:

1. It’s all about you

The app learns your face and suggests products that fit.

2. Shop from your couch

Try makeup anytime, anywhere. No store visits or makeup removal needed.

3. Buy with confidence

See how products look before buying. Less chance of regrets.

Mary Beth Laughton, Sephora’s executive VP of omni retail, puts it this way:

"Sephora Virtual Artist is a really good example of where there was a real customer need."

The app does more than just virtual try-ons:

  • Face-specific makeup tutorials
  • Matches makeup to your outfits
  • Compares different brands side-by-side

Sephora keeps adding features:

  • Cheek Try On: Test 1,000+ shades of blush, bronzer, and highlighter
  • Color Match: Finds similar shades to any photo you upload

This AI approach is working. Sephora’s online sales shot up from $580 million in 2016 to over $3 billion in 2022.

5. Spotify‘s AI-Created Playlists

Spotify

Spotify’s using AI to shake up how you find new tunes. Premium users can now make playlists with just a few words.

Here’s the deal:

  • Type something like "chill beats for coding"
  • AI checks your prompt and what you usually listen to
  • Boom! You get a mix of songs you know and new stuff to try

This AI’s pretty smart. It gets weird requests too. Want "songs to serenade my cat"? It’s got you covered.

To try it out:

  1. Open Spotify
  2. Tap Library
  3. Hit (+) in the top-right
  4. Pick AI Playlist

Pro tip: Mix artists, moods, genres, and decades in your prompts.

Some quick facts:

What How Much
Songs on Spotify 70 million+
People using Spotify 574 million in 180+ countries
Streams from AI suggestions 30% of all Spotify plays

But wait, there’s more. Spotify’s AI does other cool stuff:

  • Discover Weekly: 30 new songs for you every Monday
  • AI DJ: Picks music and talks to you like a real DJ

People who use Discover Weekly? They spend TWICE as much time on Spotify.

Ziad Sultan, Spotify’s personalization boss, says:

"We want Spotify to feel like it’s made just for you."

The AI digs through tons of data:

  • How you listen
  • What people say about artists online
  • The actual sound of songs

This lets Spotify connect songs in ways humans might miss.

It’s not perfect yet. You might get some odd suggestions. But Spotify’s being careful to avoid offensive stuff or anything too tied to current events.

As AI gets smarter, expect Spotify to get even better at knowing what you want to hear.

sbb-itb-1fa18fe

6. PayPal‘s Smart Shopping Tips

PayPal

PayPal’s stepping up its game with AI in 2024. They’re launching six new tools to make your shopping experience smoother and more personalized.

Here’s what’s coming:

  1. Smart Receipts: Your receipt gets a brain. PayPal’s AI checks what you buy and suggests what you might want next. Stores can add custom deals right on your receipt.
  2. CashPass: Starting March 2024, you’ll get AI-chosen cashback offers from big names like Walmart, eBay, and Uber. It’s like having a deal-hunting sidekick.
  3. Fastlane Checkout:
Feature Improvement
Customer Recognition 70% of shoppers
Checkout Speed 40% faster

No more typing your info every time. Fastlane remembers you and speeds up checkout.

  1. Advanced Offers Platform: Stores can use your shopping history from across the web to make offers just for you. Don’t worry, you can opt out if you want.

Alex Chriss, PayPal’s CEO, says:

"PayPal is introducing six new innovations that will not only solve real customer pain points, but we believe will change the world of payments and commerce."

What this means for you:

  • Faster checkouts
  • Deals that match what you actually buy
  • Less time searching for coupons

For businesses:

  • Better understanding of customer behavior
  • More ways to reach shoppers with targeted offers

PayPal’s betting on AI to make shopping easier for everyone. It’s about giving you what you want before you even know you want it.

7. Domino’s AI Ordering Helper

Domino's

Domino’s is shaking up pizza ordering with AI. They’re not just taking orders – they’re making pizzas before you even think about it.

Here’s what’s cooking at Domino’s:

1. Predictive Pizza Making

Domino’s CEO Russell John Weiner says:

"We make pizzas before people order them."

Their AI predicts when you’ll order and starts prepping. It’s like having a mind-reading chef.

2. AI Pizza Concierge

Domino’s is partnering with Microsoft to create an AI assistant that’s your personal pizza guide. Testing starts in 2024.

Feature Benefit
Custom suggestions Picks pizzas you’ll love
Image generation Shows your order visually
Natural interaction Makes ordering feel easy

3. Smart Store Management

The AI doesn’t just help customers. It runs the stores too:

  • Manages inventory
  • Orders ingredients
  • Schedules staff

4. Data-Driven Decisions

Domino’s is getting smarter about your preferences. They’re looking at:

  • Pizza photos you upload
  • Your order timing and location
  • Your topping choices

This helps them tailor their menu to what you actually want.

5. Voice Ordering Made Easy

Improvement Impact
Natural Language Processing Understands Google Home and Alexa orders
Voice order increase 160% jump with new tech

Kelly Garcia, Domino’s Chief Technology Officer, explains:

"What I find delicious is not necessarily what you will find delicious. We have an opportunity to provide deeper levels of personalization and ultimately drive frequency and optimize lifetime customer value."

Domino’s is betting on AI to make your pizza experience faster, easier, and more personal. It’s not just about the pizza – it’s about knowing what you want before you do.

8. Nike‘s AI Shoe Designer

Nike

Nike’s shaking things up with AI-powered shoe design. Here’s the scoop:

By You: DIY Kicks

Nike’s "By You" lets you play shoe designer. Pick a model, tweak colors, materials, and add your text. It’s not just about looks – it’s your style, your way.

A.I.R.: Design on Steroids

Enter Athlete Imagined Revolution (A.I.R.), Nike’s AI design powerhouse:

  • AI spits out hundreds of designs based on athlete input
  • Designers polish these ideas into prototypes
  • Athletes weigh in, shaping the final product

Real-World Wins

A.I.R.’s already turning heads:

Athlete Sport Cool Feature
Kylian Mbappé Soccer Fighter jet boot
Sha’Carri Richardson Track High heel meets ballet slipper
Zheng Qinwen Tennis Lunar calendar traction

John Hoke, Nike’s innovation chief, puts it this way:

"These prototypes need to hit you in the feels. They should make you go ‘Wow!’ about what’s coming next."

Why It’s a Big Deal

1. Speed: AI cranks out designs at warp speed.

2. Creativity: It pushes designers to think wild.

3. Personal Touch: Each shoe fits an athlete like a glove.

Nike’s AI designer shows tech and creativity can be best buds. It’s a sneak peek at a future where AI and human smarts team up to make something awesome.

9. Instacart‘s AI Grocery Assistant

Instacart’s "Ask Instacart" is shaking up grocery shopping. This AI tool, powered by ChatGPT, lives in the Instacart app and helps with everything from meal ideas to diet tips.

What can it do? A lot:

  • Answer food questions
  • Suggest products
  • Explain ingredients and cooking
  • Make shopping lists from recipes

Ask "What’s for dinner?" and get personalized meal ideas. Or try "What fish is like salmon?" for alternatives.

JJ Zhuang, Instacart’s Chief Architect, says:

"A simple question like ‘What’s for dinner?’ is among the most complex for families everywhere to answer."

The AI isn’t just guessing. It uses:

  • ChatGPT API
  • Instacart’s AI models
  • 1 billion+ item catalog
  • Data from 80,000+ retailers

This means smart, personalized advice based on your shopping habits.

Here’s what Ask Instacart can do:

Feature What It Does
Meal Planning Dinner ideas with ingredients
Diet Help Find foods for specific diets
Product Discovery Learn about new items
Recipe Help Get cooking instructions

10. Coca-Cola‘s AI-Made Ads

Coca-Cola

Coca-Cola’s diving headfirst into AI for ad creation. Here’s the scoop:

AI Greeting Cards

Coca-Cola launched CreateRealMagic.com. Fans make custom digital cards using AI. It taps Coca-Cola’s image library, mixing classic brand elements in new ways.

  • Uses ChatGPT-4 and DALL-E
  • Available in 40+ markets
  • Share via email and social media

In March? 120,000+ original artworks created.

AI Video Ads

The "Masterpiece" campaign took it up a notch:

  • 2-minute AI-created commercial
  • Coke bottle "travels" through famous art
  • Mix of live-action, digital effects, and AI content

World Cup Ads for Gen Z

Coca-Cola targeted Saudi Arabia’s Gen Z during FIFA World Cup:

What They Did What Happened
32 personalized video ads 46% view-through rate (36% above average)
Real-time message swapping 10% market share boost
Matched audience interests 22% more sales

Restaurant Chatbot

Coca-Cola’s AI chatbot on Instagram and Facebook Messenger finds nearby restaurants, suggests meals, and even makes invites.

Pratik Thakar, Coca‑Cola’s Global Head of Generative AI, says:

"We’re connecting people as we always have during holidays, but in a uniquely real and magical way by democratizing our creative assets and the latest AI tools."

Tips for Using AI Personalization

Want to make AI personalization work for your marketing? Here’s how:

Build Detailed Customer Profiles

Use AI to create deep Ideal Customer Profiles (ICPs):

  • Mix your own data with outside info
  • Try tools like Scout AI or Humantic AI

Use Real-Time Data for Content

Tailor your message based on fresh customer insights:

  • Connect AI tools to your CRM
  • Use real-time data to fine-tune content
  • Check out ChatSpot AI, 6Sense, or Clay

Boost Creative Content Production

Let AI help you make and test content fast:

  • Use AI to find what works in your content
  • Automate content creation for quick testing
  • Scale up winning content templates

Prioritize Data Privacy

Balance personalization and privacy:

  • Only collect what you need
  • Be upfront about how you use data
  • Let users opt out

Brittany LeMaro from Hitachi Solutions says:

"It’s a balancing act, and one that we need to approach with care and responsibility."

Implement Ethical AI Practices

Keep your AI use fair and clear:

  • Set ethical rules for AI in marketing
  • Watch out for biases in your algorithms
  • Check privacy impact regularly

Leverage First-Party Data

Focus on data straight from your customers:

  • Website visits
  • Social media likes and shares
  • Email opens and clicks

This data helps you understand what customers want.

Create Omnichannel Experiences

Use AI to personalize across all channels:

Channel Personalization Tactic
Website Custom product suggestions
Email Content based on past actions
Social Media Targeted ads
Mobile App User-specific features

Monitor and Refine

Keep improving your AI strategy:

  • Track important numbers
  • Ask users what they think
  • Change your approach based on results

Wrap-Up

AI personalization is changing the marketing game in 2024. Here’s what you need to know:

AI tools are transforming customer interactions. They crunch data fast, predict behavior, and create custom experiences at scale.

Companies using AI are winning big:

Harley Davidson saw leads jump by 2,930% per month with Albert.ai. Netflix keeps viewers glued with AI recommendations. Amazon’s product suggestions boost sales through personalization.

What’s coming next? AI in marketing is set to:

  • Analyze more diverse data
  • Team up with AR and VR for immersive experiences
  • Get even better at predicting trends

Want to make AI personalization work for you? Here’s how:

1. Build detailed customer profiles

Gather as much relevant data as you can about your customers.

2. Use real-time data

Adjust your strategy on the fly based on current customer behavior.

3. Balance personalization and privacy

Don’t cross the line into creepy territory. Respect user data.

4. Keep testing

AI isn’t set-it-and-forget-it. Always be improving your approach.

The future of marketing is AI-powered and personal. Are you ready?

FAQs

What is an example of AI personalization?

Stitch Fix nails AI personalization. Here’s how:

  1. You take a style quiz
  2. AI crunches your preferences and past buys
  3. Boom! You get personalized clothing picks

It’s like having a super-smart personal shopper in your pocket.

How can AI be used for personalization?

AI personalization is all about using your data to tailor your experience. It looks at:

  • Who you are
  • What you’ve bought
  • How you browse
  • Your social media habits

With this info, AI can:

  1. Guess what you’ll want next
  2. Suggest products you’ll love
  3. Craft marketing messages just for you

Take BSH Group, a home appliance big shot. They used AI and saw:

  • 106% jump in conversion rate
  • 22% more add-to-carts

That’s the power of AI turning your data into dollars.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *