Marketing is changing at unprecedented speeds. In the past, classical marketing theories and concepts were enough. But today, marketers can only transcend the noise of one-size-fits-all messaging by delivering meaningful, empathy-driven experiences — and AI-powered personalization is the key to making it happen.

AI has opened a vast array of opportunities to engage consumers in new and exciting ways, bringing us closer to our innate vision of what technology could be. Still, connecting with consumers on an emotional level and keeping pace with the digital world means drawing on the strengths of both humans and machines. AI’s power lies in the efficient and the predictable, while ours resides in the imaginative and the adaptable. How you strike that balance will be what determines success.

Here’s how the consumer landscape has changed in this new era, and some ways AI and humans can work together to deliver on expectations and drive much-needed, long-lasting brand loyalty.

AI is fueling rising consumer expectations

Nowadays, AI can detect intricate patterns, associations between data points, and continuously refine predictions in seconds. These advances have led to always-on recommendation engines that — with permission from the consumer — analyze real-time context (such as clicks, device types and time of day) to serve highly personalized experiences, often right from the first site visit.

They’ve also brought us AI-powered conversational experiences, like Shopping Muse, which empower consumers to find what they need using everyday language. By relying on natural language processing and deep learning models, these tools deliver personalized recommendations for each site visitor, allowing them to navigate large product catalogs with greater efficiency.

As AI-driven interactions like those above become commonplace, it’s stating the obvious that consumer expectations will continue rising. Having witnessed the speed with which major innovators — from streaming services to ecommerce giants — have integrated AI into their offerings, most people want a more human experience that recognizes greater context. Brands that can’t derive data-driven insights, make associations, and use it to understand consumer needs in the moment risk falling behind competitors.

Recent Forrester research also reveals that 76% of consumers who feel understood will remain loyal, keeping their business with a brand.1 For brands to succeed in the long run, they’ll have to bridge the gap between human ingenuity and the efficiency of machines, so they can bring empathy into every digital interaction.

To learn about how AI and humans can work together, check out a copy of Marketing in AI Era, our latest book on personalization:

How marketers can collaborate with AI to keep up with consumers

Consumers may have genuine concerns about AI replacing humans, but the real power of adopting AI lies in partnership. Machines have proven to be indispensable when it comes to scaling frequent, high-volume tasks, but they fall short when confronted with unique and unexpected situations where human creativity, adaptability and ingenuity are needed. Simply put, machines cannot empathize with humans.

However, brands can make the most of both of their strengths. Think of it as a grand symphony: Machines keep the tempo while the humans feel, observe, and connect, creating the memorable melody that drives the art form forward.

Here are three ways human insight enhances AI-powered marketing with creativity and empathy: 

1. Nurture creativity
   AI can discover patterns, quickly adapt to user preferences, predict intent in seconds, and even aid the ideation process — to an extent. But while some will argue that AI is creative in and of itself, what’s missing is unique creative input, which is where humans flourish. However, AI can lift the burden off marketers, enabling them to engage in activities that spark imagination and divergent thinking. By doing so, they can break free from predictable patterns, creating not only relevant but emotionally resonant, unexpected and truly delightful experiences.
2. Cultivate empathy
   Data-driven insights reveal what people do — but not why. Marketers must get better at unpacking the “why” so they can truly understand consumers on a differentiated level. That means seeking out diverse perspectives and being empathetic to their unique pain points, needs and desires.This empowers marketers to craft experiences across the journey with the brand that resonate on a deeper level, addressing not just the functional problems consumers face, but also the motivations that fuel their actions.
3. Balance relevance and respect
   The depth of preference-based data and growing number of capabilities within AI tools to work with may be an exciting prospect for marketers, but they must apply caution. Personalization must be built on trust, respect and privacy. In practice, this means emphasizing the set of rigorous standards used to ensure the protection, accuracy, safety and security of data leveraged in the design of personalized experiences. People are increasingly aware that marketers’ understanding of consumer behavior trends is growing every day. They recognize when their data isn’t collected or used responsibly. Brand loyalty comes from offering reassurance and tangible guardrails that demonstrate to the consumer that you have their best interests at heart, and they have autonomy over their data.

These are just some starters when it comes to cultivating a strong relationship between AI and humans. In Marketing in the AI Era, we unpack dozens of ways to design personalized digital experiences that not only respond to consumer behavior on a deeper level but build emotional bonds that foster lasting brand loyalty.

The future of marketing belongs to those who are ready to embrace AI and machine learning through meaningful avenues like personalization — and understand that it will only amplify the boundless potential of human ingenuity.
 

Sources

<sub>Dynamic Yield by Mastercard is not affiliated with the research cited in these sources.
1. Pilecki, Mary. “CX Is a Critical Driver Of Emotional Loyalty.” Forrester, April 26, 2021. https://www.forrester.com/blogs/customer-loyalty-emotion-metrics/</sub>