AI-Powered Personalisation: Striking the Right Balance for Scalable Consumer Engagement
As consumer expectations for tailored digital experiences grow, businesses are turning to AI and generative AI to scale personalisation like never before. But personalisation isn’t just about technology, it’s about balance.
The Personalisation Challenge: Getting It ‘Just Right’
Today’s brands face a complex task: engaging a diverse, global audience with unique languages, cultures, and purchasing preferences, all while ensuring personalisation doesn’t feel invasive.
According to the Data & Marketing Association’s (DMA) ‘Customer Engagement Future Trends’ report, 100% of marketers claim to be personalising their marketing materials yet 88% acknowledge that personalisation can feel intrusive, depending on how customer data is used. Meanwhile, 60% of consumers feel it has become too invasive.
The challenge is no longer about whether to personalise, it’s about doing it in a way that feels seamless, natural, and valuable to consumers.
Many brands still rely on fragmented, manual approaches to personalisation, often leading to inconsistent or overly aggressive targeting. The future lies in two key AI-driven innovations:
AI-Powered Targeted Promotions.. Delivering highly relevant offers based on real-time customer behavior.
Generative AI for Personalised Content.. Scaling customised messaging, imagery, and experiences at speed.
When used thoughtfully, these innovations can help brands move beyond intrusive personalisation to create experiences that are genuinely useful and engaging.
Unlocking Growth Through AI-Driven Promotions
Traditional mass promotions—one-size-fits-all discounts blasted to broad audiences—are no longer effective. Today’s economic pressures and shifting consumer preferences require a more strategic approach. Research shows that 65% of customers cite targeted promotions as a key reason for making a purchase, making precision marketing more critical than ever.
AI-driven targeted promotions allow businesses to move beyond generic discounts. By analysing shopping habits and segmenting customers based on their lifecycle stage, brands can offer:
Personalised incentives tailored to individual preferences.
Dynamic offers that adjust in real-time based on engagement.
Omnichannel delivery through apps, emails, and push notifications.
Retailers that implement AI-driven promotions strategically can see a 1-2% sales lift and a 1-3% improvement in margins, all while enhancing their consumer's experience.
The Power of Generative AI in Personalisation
While targeted promotions attract customers, the messaging and creative behind them needs to resonate. This is where generative AI transforms marketing by:
Scaling content creation – Producing personalised copy, images, and videos at high volume and lower cost.
Enhancing engagement – Tailoring messaging to micro-communities with specific interests and preferences.
Streamlining workflows – Automating creative development while maintaining brand consistency.
However, brands must tread carefully. When personalisation feels too targeted or intrusive, it risks pushing consumers away instead of drawing them in. This is why AI-driven personalisation must be built on transparency, ethical data use, and a clear value exchange for the consumer.
The Future of AI-Driven Personalisation: A Balanced Approach
To fully unlock the potential of AI and generative AI, companies must invest in a strong marketing technology ecosystem that integrates:
