As this world is constantly changing it is not surprising how far AI has come in such a short span of time. It is for this reason that companies use computers and their software to become more strategic against their competitors. (A few companies which use AI is Netflix, Facebook, Spotify & Apple Music).
As personalization becomes something many customers desire it is not surprising that an entertainment streaming company offers this. Netflix has grown over time and has been something many people have gravitated towards. The strategic way that Netflix has done this is through personalization of movie recommendations. Not only is Netflix making their user experience unique for each viewer, it also uses AI to remember what each customer likes then it uses that pattern to personally suggest similar films.
While Netflix has excelled with this, they are not the only company which has preformed well with the help of AI. In fact, Spotify uses AI that uses a listener’s previous music habits to predict what music they enjoy. Through strategic marketing to keep listeners on their platform longer Spotify created Spotify Wrapped which is a deep dive into the artists, songs and podcasts that defined each year.
When the listener listens to more audio they will have a better wrap when it is launched that year. Though this is important for the user experience, this isn’t the only thing which makes a business successful. When directing an ad to a person AI cultivates the customer through understanding what stage the buyer is in, are they looking to buy or do the not consider purchasing a product or service until they see it via social media. Furthermore, media and advertising uses personalization to make potential eyes view a product or service in hopes of them clicking to buy what they are viewing.
While this is not a new phenomena, through the use of AI Facebook can target potential and current customers.
The pros and cons of personalization in business vary. While it can be costly, it can also benefit the company through large amounts of customer loyalty. Though you may not always get it right, for the times that you do, every user gets a personal experience that makes them want to stay longer. With doing so, this drives conversions and increases customer loyalty. This is great for the company, however, some users might find this off-putting.
For companies, it is important to understand the data that is being presented and use it to your best ability. When someone watches a film on Netflix, the streaming service can record and monitor the viewers behavior, thus gathering data such as when viewers clicked play or pause and what parts that re-wound. Thus when a user clicks search, the search is made up of multiple algorithms that help determine which results the user is looking for and what to offer them in the recommended section. As for Spotify, they are excelling in several ways from Discover Weekly playlists which are generated for users based on calculated data that reacts to a users listening history.