Lee Edwards, Vice President of Sales EMEA at Amplitude, looks at the ways in which AI could drive increased personalisation in customer interactions.

Personalisation isn’t just a nice-to-have in consumer interactions — it’s a necessity. People want companies to understand them, and proactively meet their needs. However, this understanding needs to come without encroaching on customers’ privacy. This is especially crucial given that nearly 82% of consumers say they are somewhat or very concerned about how the use of AI for marketing, customer service, and technical support could potentially compromise their online privacy.  It’s a tricky balance, but it’s one that companies have to get right in order to lead their industries.

With that, I encourage organisations to lean into three key pillars of personalisation: AI, privacy, and customer experience.

1. The power of AI in personalisation

To tap into AI’s power to transform the way businesses interact with their customers, companies need to get a handle on their data first. The bedrock of any successful AI strategy is data – both in terms of quality and quantity. AI models grow and improve from the data they’re fed. As a result, companies need to have good data governance practices in place. Inputting small quantities of data can lead to recommendations that are questionable at best, and damaging at worst. Yet, large amounts of low-quality data won’t allow companies to generate the insights they need to improve services.

Organisations must define clear policies and processes for handling and managing data. This ensures that the data being used to train an AI model is accurate and reliable, forming the foundation for trustworthy personalisation efforts.

Another key to improving data quality is the creation of a customer feedback loop through user behaviour data. The process involves leveraging behavioural insights to inform AI tools and leads to more accurate outputs and improved personalisation. As customer usage increases, more data is generated, restarting the loop and providing a significant competitive advantage.

2. The privacy imperative

When a consumer interacts with any company today, whether through an app or a website, they’re sharing a wealth of information as they sign up with their email, share personal details and preferences, and engage with digital products. Whilst this is all powerful information for providing a more personalised experience, it comes with expectations. Consumers not only expect bespoke experiences, they also want assurances that they can trust their data is safe.

That’s why it’s so critical for organisations to adopt a privacy-first mindset, aligning the business model with a privacy-first ethos, and treating customer data as a valuable asset rather than a commodity. One way to balance personalisation and data protection is by adopting a privacy-by-design approach. This considers privacy from the outset of a project, rather than as an afterthought. By building privacy into processes, companies can ensure that they collect and process personal data in a way that is transparent and secure.  

Just as importantly, companies need to be transparent about where and how personalisation is showing up in user experiences throughout the entire product journey. Providing users with the choice to opt in or out at every step allows them to make informed decisions that align with their needs. This can include offering granular opt-in/out controls, rather than binary all-or-nothing choices.   

Regular privacy audits are also crucial, even after establishing privacy protocols and tools. By integrating consistent compliance checks alongside a privacy-first mindset, companies stand a better chance of gaining and maintaining user trust.

3. Elevating customer experience

The purpose of personalisation is driving incredible customer experiences, making this the third pillar of the triad. Enhancing user experiences requires a nuanced approach that goes beyond mere data utilisation. It’s about creating meaningful, contextual interactions that resonate with individual consumers.

Today’s consumers want experiences that anticipate their needs and provide legitimate value. This level of personalisation requires a deep understanding of customer journeys, preferences, and pain points across all touchpoints.

To truly elevate the customer experience, organisations need to adopt a multifaceted approach that starts with shifting from a transactional mindset to a relationship-based one, ensuring that personalised experiences are not just accurate, but timely and situationally appropriate. Equally crucial is the incorporation of emotional intelligence to deeply understand customers’ needs and  enhance perceived value. Furthermore, proactive engagement through predictive analytics allows brands to anticipate customer needs and offer solutions before problems arise. By combining these elements – contextual relevance, emotional intelligence, and proactive engagement – organisations can turn transactions into meaningful, value-driven relationships.

Looking at the whole personalisation picture

Mastering AI, privacy, and customer experience isn’t just important – it’s essential for effective personalisation. And these pillars are interconnected; neglect one, and the others will inevitably suffer. A powerful AI strategy without robust privacy measures will quickly erode customer trust. Likewise, strict privacy controls without the ability to deliver meaningful, personalised experiences will leave customers unsatisfied.

But achieving this balance is just the starting point. Customer expectations shift rapidly, privacy laws evolve, and new technologies emerge constantly. Organisations must continually adapt, using the data customers share to shape their approach; it’s about taking a proactive stance to meeting customers’ needs, not a reactive one.

  • Data & AI

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