Customer Personalization
What company has been a pioneer in customer personalization on its e-commerce platform? If you thought of Amazon, you’re right. Early on, Amazon leaders realized the potential within the vast amounts of data generated through customer interactions.
Fast forward to today. Amazon uses sophisticated algorithms to analyze its massive datasets. These include individual customer purchase histories, search queries, and browsing behaviors. This analysis drives highly tailored shopping experiences for each user. When a customer searches for a product, for example, Amazon not only displays relevant items but also suggests complementary products based on what similar customers have viewed or purchased. Customer personalization has been a key contributor to Amazon’s increasing online sales.
New Product Innovation
Starbucks is another company that has harnessed the value of data and analytics. The company processes roughly 100 million transactions per week at its 30,000 locations around the globe.4 A team of data scientists analyzes this information to help support various business initiatives, including new product development.
After learning that 43% of its tea-drinking customers preferred no extra sugar,4 Starbucks created its own line of unsweetened iced tea that it launched in grocery stores. Other data showed that 25% of its customers don’t add milk to their coffee.4 This insight motivated the company to create a new line of black iced coffee without milk.
Starbucks also collects data through its rewards program and mobile app. This data reveals what, where, and when rewards program members buy coffee. The company uses AI to process this data and personalize each customer’s experience. Starbucks even ties in weather data so that it can promote cold drinks on hot days.
Operational Efficiency
Learn More
Read more about AI in the following Prowess Consulting articles and reports:
- Navigating AI for Business with Expert Guidance from Prowess
- AI Vs. Machine Learning Vs. Deep Learning
- Built-In Intel AI Accelerators and Why You Should Use Them
Prowess advises clients on a variety of AI ambitions and projects. Contact us to explore how we can help your organization benefit from AI.
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1 Databricks. MIT Technology Review Insights. “MIT CIO Generative AI Report.”
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