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Enabling Personalization Through Generative AI

Nov 20, 2024 - forbes.com
The article discusses the importance of personalization in customer experiences and how generative AI (GenAI) can enhance this. It highlights that customers prefer brands that offer personalized experiences and that retaining existing customers is more cost-effective than acquiring new ones. GenAI can help in this by understanding and anticipating user needs, making interactions more engaging, and improving customer satisfaction. It can also help in identifying target segments, delivering relevant content, and improving customer retention.

The article further discusses the benefits of GenAI, including seamless data integration and protecting user privacy. It can optimize target models, increase cost efficiencies, and help comply with privacy regulations. For successful implementation, organizations need to build a unified data platform and a governance and compliance framework. The article concludes by suggesting best practices for organizations starting with GenAI, such as developing audience profiles, addressing technical debt, and leveraging clean rooms to combine data from various sources in privacy-compliant ways.

Key takeaways:

  • Generative AI (GenAI) can enhance personalization by leveraging data and algorithms to understand and anticipate user needs, making interactions more relevant and engaging, delivering cost efficiencies, increasing customer retention and improving customer satisfaction.
  • GenAI can help identify desired target segments, delivering increasingly relevant content, experiences and ads to consumers, and can also help enforce ever-changing privacy regulations.
  • Organizations must build, develop and maintain audience profiles or segments, combining data in multiple formats, from several sources to build increasingly insightful audience profiles of their client base.
  • Using GenAI to build audience profiles, quickly scale and stay on top of changing privacy regulations will help organizations enhance their competitive edge while catering to client expectations.
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