Personalisation, Gen AI Transforms Consumer Connections

Personalisation today has emerged as a crucial element in modern marketing with generative AI reshaping the way brands connect with consumers. It has evolved from a trend to a strategic imperative. This transformation is particularly significant as it caters to the leading expectations of Gen Z. 

As generative AI takes centre stage, the marketing industry is witnessing a profound shift in the way brands connect with their audiences. As it goes beyond traditional segmentation, it allows marketers to create highly individualised experiences for consumers. 

Generative AI is changing how consumers and brands engage, from personalised messaging to tailored product recommendations.

Balancing Personalisation and Privacy

Deba Ghoshal, Vice President & Head of Marketing, Voltas emphasises the balance between targeted marketing and respecting the privacy of younger demographics stating, "When we talk about targeting specific segments especially the youngsters, don’t forget that they also need privacy." 

Ghoshal suggests that while personalisation is crucial, interference with the personal space of consumers should be avoided. "You need to understand how much content is interfering and how much of a content is really a delight and that’s the difference marketers should deploy when they implement their schemes to target these youngsters," he explains.

He insists that marketers should leverage available tools to deliver tailored messaging without compromising the privacy that consumers, especially the youth, demand. Explaining the balance, he states, "You have tools today to target specific people or specific segments in specific geographies for specific products and the new age generation also looking at that targeting. They would look forward to getting messaging from you, specific to their requirements but don’t interfere with them."

Tech and Gen Z

Brands leveraging generative AI can curate content that not only resonates with Gen Z's diverse interests but also reflects a deeper understanding of their social and environmental concerns. By analysing vast datasets and understanding individual preferences, gen AI crafts content that speaks directly to the unique interests and needs of each consumer.

Gaurav Sinha, Head of Marketing & PR, Audi highlights the vast potential of generative AI in creating personalised content. He asserts, "AI, especially generative AI gives us the opportunity to make more personalised content, environment, text, artwork and tunes that create more affinity and engagement."

Sinha believes that the possibilities are immense, offering brands the opportunity to establish a deeper connection with their audience through creative and personalised communication.

Data-driven Personalisation

Nonetheless, consumer-centric data-driven personalisation marks a paradigm shift in how businesses engage with customers. Utilising advanced data analytics, brands gain insights into individual behaviours and preferences, enabling the creation of highly personalised customer experiences. McKinsey research shows that 71 per cent of consumers expect companies to deliver personalised interactions and more often than not 76 per cent get frustrated when this doesn’t happen.

Vikas Gupta, Group CEO, VLCC, underlines the role of data-driven personalisation in meeting consumer expectations. He explains, "When you have the customer data and you are able to anticipate and understand their journey and needs and you are able to create the right mixes to cater to their needs."

From a consumer's perspective, Gupta suggests that the expectation is for brands to demonstrate a deep understanding and serve them better. He emphasises, "Companies that use the power of data, technology and AI to serve their consumers better, they are going to really get the benefits in terms of value creation that they will be able to drive."

Gupta notes that, from the consumer's standpoint, the mode of delivery, whether human or AI, becomes secondary to the perceived value that the brand delivers. 

The focus on leveraging the power of data and technology to meet consumer expectations, he suggests, "It is dependent on what consumers see the brand delivering to them and the brands that are going to do better are going to win the market."

He further highlights that the brands that succeed will be those that prioritise consumer understanding, personalisation, and seamless delivery, whether by human touch, AI or both.