Generative AI Hyper-Personalization Makes Segmentation Obsolete

A skilled tailor measuring the shoulders of a smiling woman wearing a jacket in a luxurious shop, filled with natural light.

In recent years, marketers worldwide have been shifting towards personalization, an advanced technique that leverages consumer data to deliver tailor-made content to individual consumer segments. This paradigm shift stems from a simple fact: customers increasingly demand a personalized touch.

Indeed, we advocated for implementing automated data segmentation and targeting to enhance marketing campaign efficiency in a previous article. However, with the advent of generative AI and large language models (LLMs), a new dimension of personalization is unfolding, rendering traditional segmentation methods less relevant: hyper-personalization.

This novel approach, which goes beyond segmentation to cater to individual preferences, has massive potential in both B2B and B2C environments. Here’s why:

The Death of Segmentation

In the world of email marketing, segmentation has been the kingpin for years, aiding businesses in tailoring their message to distinct groups of customers. Yet, as technology evolves, the ‘one-size-fits-all’ approach within each segment becomes less viable. Enter hyper-personalization.

Thanks to AI advancements, we’re now capable of crafting content and messages tailored to each individual’s preferences, experiences, and interactions. With AI, no two emails need to be the same. It’s the end of segmentation as we know it.

Generative AI: The Engine of Hyper-personalization

With large language models like GPT, hyper-personalization is no longer a concept in science fiction. Our latest product does just that: it leverages LLMs to craft hyper-personalized emails by combining information about the recipient, our company, and the economic context.

For instance, imagine you’re a mid-sized FMCG company looking to expand your data analytics capabilities. Our AI system identifies your needs based on your industry, role, company size, and past interactions. Then, it composes a unique email, detailing how our data analytics services could revolutionize your operations, bolstered by case studies of similar companies we’ve helped.

Simultaneously, it integrates current economic outlook to contextualize the proposal and highlight the urgency or potential benefits. Each email becomes a unique artifact, designed to speak directly to you and resonate with your unique situation.

Benefits Across B2B and B2C Models

This level of personalization has transformative potential across both B2B and B2C models.

In B2B scenarios, businesses often grapple with long sales cycles and multiple decision-makers. Hyper-personalized emails can cater to each stakeholder, addressing their unique pain points and showcasing relevant solutions. For instance, a CTO might receive a detailed technical proposal, while the CEO gets an overview of the strategic benefits.

Meanwhile, in a B2C scenario, imagine an online fashion retailer. Based on a customer’s past purchases, browsing history, and abandoned items, the AI could send an email featuring a personally curated selection of clothes that suit their style. Perhaps they left a shirt in their cart last time? The AI could include a gentle nudge, offering a time-limited discount on that item.

Hyper-personalization truly resonates on an individual level, offering solutions tailored to a person’s needs, preferences, and circumstances.

The Dawn of a New Era

The intersection of data analytics and generative AI has ushered in a new era in email marketing. Hyper-personalization is now a reality, and with it, we’re witnessing the decline of traditional segmentation.

By embracing this technology, we can create highly personalized communication that not only meets but exceeds customer expectations, leading to improved customer engagement and, ultimately, a superior return on marketing investment.

In conclusion, while segmentation served us well, it’s clear that the future lies in hyper-personalization. Generative AI empowers us to create truly individual experiences, bringing a whole new meaning to ‘made just for you.’

*the article has been written with the assistance of ChatGPT and the image has been generated using Midjourney