The increased use of Artificial Intelligence (AI) is reshaping the digital marketing landscape, but it could potentially lead to a disaster if personalization and tailoring for each customer is neglected.
Although 61.4% of marketers are using AI to optimize their marketing campaigns, only 54.5% believe it enhances their outputs.
- 59% of consumers do not feel comfortable with companies utilizing AI to personalize their experiences.
“Just because something can be automated doesn’t mean it should be,” explains Derek Chew, CEO of Fullmoon Digital. “AI is useful but can’t fully replace the crucial human element in digital marketing.”
The consequences of neglecting personalization in AI-driven marketing can be disastrous.
Excessive reliance on automation, generic content delivery, and a lack of human touch are the pitfalls that can result in alienated customers, decreased brand loyalty, and ultimately, a negative impact on revenue.
Chew states that customers expect relevant and timely interactions, and any failure to meet these expectations can lead to detrimental outcomes for brands. Negative experiences could lead to a decline in customer loyalty, increased churn rates, and potential damage to a company’s reputation.
Brands must shift their focus towards hyper-personalization — an approach that goes beyond traditional personalization efforts.
“Each interaction with customers must feel unique and tailored. Brands must acknowledge the importance and recognize the limitations of leveraging AI to deliver truly customized experiences,” notes Chew.
Derek Chew can also explain why human supervision and intervention is imperative to get the most optimum output of an AI-generated marketing campaign.
About Fullmoon Digital
Fullmoon Digital, founded by Derek Chew, a former early Yahoo! employee, is one of the few 100% independent digital marketing agencies in the United States. The firm is cross-functional, with deep experience in media planning and buying, digital consultancy, SEO, digital strategy, programmatic, analytics, performance marketing, paid media, social advertising, and creative. They push the envelope of what is possible in terms of marketing and technology, all the while providing best-in-class digital marketing service to their “pack” of clients. For more information, please visit www.fullmoondigital.com
Sources to read more:
- Geyser, Werner. Artificial Intelligence (AI) Marketing Benchmark Report: 2023. February 22, 2023. Influencer Marketing Hub. https://influencermarketinghub.com/ai-marketing-benchmark-report/
- Dey, Victor. 92% of businesses use AI-driven personalization but consumer confidence is divided. May 02, 2023. Venture Beat. https://venturebeat.com/ai/92-of-businesses-use-ai-driven-personalization-but-consumer-confidence-is-divided/