Global digital influence on businesses seems to take an artificial intelligence (AI) based direction to benefit customers. With personalisation considered important for business patterns, AI in it can help collect information based on consumers’ behaviour. From what it’s understood, AI algorithms in personalisation are growing valuable day-to-day. “I believe AI-powered personalisation refers to use of AI to tailor content, services or investment opportunities based on data and behaviour of users. It involves analysing large datasets to understand user preferences,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, told FE Blockchain.
Market analysis suggests that implementation of an AI-based personalisation strategy needs groundwork. According to Techopedia, a technology portal, tips to create an AI-based personalisation mechanism include understanding goals, access to high-quality data, conducting trials, ensuring transparency, and usage of different mediums. In terms of benefits, AI-based personalisation has potential to increase revenue from business operations. LinkedIn, a social networking website, stated that AI-based personalisation helps enhance engagement and increase conversion rates. The website also stated that AI applications can better content recommendation processes, along with utilisation of other methods such as chatbots, predictive analytics, personalised marketing, and AI assistants. “I think AI-based personalisation provides advantages, including improved user experience, increased engagement, higher customer satisfaction, enhanced retention and loyalty, marketing, real-time adaptation, data-driven insights, scalability, competitive advantage, and improvement,” Aditya Joshi, CEO, OpalForce, an AI, technology and talent solutions firm, highlighted.
Reportedly, companies such as Amazon, Netflix, Sephora, among others, have entered the AI-based personalisation market. For example, Netflix has been using machine learning to provide suggestions around TV shows and movies backed by a subscriber’s watching history, which has ensured long-term customer retention. As far as Amazon is concerned, it uses AI-powered personalisation to give product recommendations to consumers backed by their product purchase history. It’s believed that Amazon has clocked a 35% rise in company’s total revenue upon using this method.
Data from Technavio, a market research firm, mentioned that AI-based personalisation market is expected to clock $2,541.4 million at a 20.45% compound annual growth rate (CAGR) for 2022-27. Furthermore, the firm stated that for 2023, AI-based personalisation market will face a 13.78% year-over-year growth rate. Moreover, future predictions indicate that AI-based personalisation will be important for business development along with customer retention. Insights from Marketing AI Institute, an online education company, showed that AI-based personalisation is growing in importance for customers to have engagement with a particular brand, resulting in high retention rates.
Initially targeting around 1,200-1,400 HoReCa (Hotel/Restaurant/Café) businesses in Delhi-NCR, UcliQ has now set goals to reach 20,000-25,000 businesses across Delhi-NCR, Bengaluru, and Hyderabad within the next 12 months.
Their objective is to achieve an estimated revenue of Rs 15 crore during this period. Commenting on the investment, Bhawna Bhatnagar, Co-founder of EvolveX, stated, “Having closely evaluated UcliQ’s potential, we are confident by their unique approach to reshaping the B2B meat supply chain in India.”