Artificial intelligence (AI) is transforming the efficiency of businesses and driving new features into mobile apps.
Our global investment in AI is expected to increase from $35.8 billion in 2019 to $79.2 billion in 2022, according to the International Data Corporation.
This emerging technology continuously learns from data to make autonomous decisions. Common examples of AI include chatbots and shopping cart recommendations.
AI brings value to businesses by enabling individualized, targeted experiences based on data.
This article will discuss why AI has the power to enhance your company’s mobile application.
AI creates personalized experiences
AI-powered mobile apps deliver the individualized experiences many consumers are seeking. Data shows that custom-crafted experiences increase the likelihood of a conversion.
A key AI-driven feature is personalized product recommendations.
Infosys research reports that 59% of shoppers who have experienced personalized AI messaging believe it has a noticeable influence on their decision to purchase goods.
Starbucks and Nike both deliver user-specific suggestions based on their customers’ habits.
Starbucks’ rewards program suggests your favorite orders in real-time based on past habits. If a customer frequently purchases Chai Tea Lattes, they will likely see that drink as a suggestion.
Source: The Manifest
Once customers have selected to purchase the Chai Tea Latte, the app will suggest food items that would pair well with the drink.
This tactic is effective. Customers are more likely to buy from an online or offline retailer if they offer relevant recommendations, according to Accenture. Over three-quarters of consumers will say “yes” to relevant recommendations.
AI-powered apps can greet a user by name as well as recommend products based on past purchases and purchase history.
These features provide a sales associate’s personal touch while conserving internal resources.
AI makes creating an experience that reflects your users’ preferences possible. These individualized experiences support quality conversions and lead development.
Related read: Retail Business Goes Mobile: How to Create a Good Retail App?
AI enables more effective mobile marketing
Businesses that integrate AI into mobile marketing tactics are better at targeting their key audiences. These smart marketing campaigns allow you to use your resources effectively.
The cosmetics brand Sephora analyzes its customer’s profile and purchasing history. Then, they customize marketing tactics such as beauty tutorials to the users’ skin tone and beauty routine.
Using an uploaded photo of a customers’ face, the Sephora app can even show the user how to apply makeup. Through customization tactics like this, Sephora has achieved a substantial ROI.
Sephora’s smart engagement tactic incorporates product recommendations with a novel experience.
Before these tactics are implemented, AI-driven mobile apps also help managers craft their mobile marketing strategies.
After analyzing customer data, AI features help executives segment their users, identify the correct time to engage, and find high-value customers.
These reports guide managers toward areas where marketing dollars are best spent.
Intelligent features such as product recommendations are more effective when they are sent at the optimal time to the right customer.
For instance, Sephora analyzes its loyal customers’ social media habits to decide which users would make the optimal brand ambassadors. Then, they plan outreach accordingly.
Mobile marketing strategies benefit when they incorporate AI insight and functionality. These methods improve your customer experience and help you make smarter decisions about where to allocate resources.
Related read: What is a Chatbot and How to Use It for Your Business
AI transforms customer data into smart engagements
Each customer generates a wealth of data on a day-to-day basis. Using AI, businesses can leverage this information in real-time to build stronger connections with customers.
Sephora and Starbucks are both analyze the digital habits of their consumers to craft personalized mobile experiences. This wouldn’t be possible without AI.
McKinsey Global Institute reports that data-driven organizations are 23 times more likely to acquire customers than competitors.
Customers produce data each time they use search engines, communicate via social media, or complete a transaction.
Source: MarTech Advisor
Third-party integrations make it possible to incorporate this data into your apps’ functionality. If a user purchases a dress on a retail mobile app, advertisements for a similar item could appear on their Facebook or Pinterest accounts.
A customers’ geographic location combined with transactional information could power in-app notifications about items on sale at nearby stores.
Customer data analytics is the source of successful in-app marketing campaigns and personalization.
Businesses should take advantage of the opportunity to conserve their staffs’ time and make quick decisions based on data.
Related read: Beacons for Business: Delivering Personalized User Experiences
Bring the power of AI to your mobile app
Companies will benefit from incorporating AI into their mobile apps by connecting more effectively with customers and increasing their conversions.
The emerging technology allows for greater customization and innovative marketing. It enables executives to analyze their customers’ data in real-time and make decisions accordingly.
Ultimately, AI-driven mobile experiences engage customers more effectively than apps with less personalization.
This is a guest post by Nicole Schlabach. Nicole is a Content & Editorial Associate for Clutch. She is responsible for the quality and user experience of the reviews content on the Clutch platform .