Boston, United States – 15th October 2024 – Personalization has become a crucial business strategy in a world where customers expect instantaneous and customized experiences. The Boston Consulting Group (BCG) predicts that over the next five years, businesses that master personalization will see $2 trillion in revenue growth.
Most businesses find it difficult to leverage personalization, but artificial intelligence is changing that by allowing them to provide incredibly accurate, data-driven consumer experiences.
Mark Abraham and David Edelman of BCG contend in their latest book titled Personalized: Customer Strategy in the Age of AI, that businesses who use AI-driven personalization will outperform their rivals.
Drawing insights from a survey spanning 5,000 consumers, 100 senior industry leaders, and various case studies, the book provides a thorough manual for leveraging AI for personalized customer engagement.
Abraham, a senior partner at BCG and co-author of the book, points out that the majority of personalization initiatives undertaken by businesses are flimsy. Such initiatives often fail to deliver value to consumers and squander potential opportunities.
AI, on the other hand, can cut through this clutter and enhance corporate performance and customer satisfaction. Businesses who excel at personalization, as determined by BCG’s Personalization IndexTM, can achieve a 10% annual increase in revenue growth compared to peers.
The book also highlights the 5 key consumer commitments of AI personalization: Empower Me, Know Me, Reach Me, Show Me, and Delight Me.
The book concludes that these five aspects must be upheld to drive AI personalization, with David Edelman, a BCG senior advisor, saying,
“Successful personalization leaders aren’t just implementing AI to optimize their communications. They have embraced a new mindset that promises to put the customer’s needs first.”
Source: https://www.bcg.com/press/15october2024-capturing-the-2-trillion-personalization-opportunity-with-ai
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