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Amazon is implementing AI to personalize offers in real time – what does this mean for the digital world?
What?
Amazon announced the implementation of advanced artificial intelligence (AI) algorithms that analyze user data in real time and dynamically adjust the product offerings visible on the website and in the mobile app.
Why?
The goal of the implementation is to increase the effectiveness of product recommendations, improve (increase) conversions, and provide customers with an even more personalized shopping experience.
Who is it for?
The solution is aimed at both individual users who use the Amazon and sellers selling on the Amazon , who can gain greater visibility for their offers and, above all, increase sales.
How is AI changing personalization in the digital world?
Personalization in the digital world isn't a new trend, but Amazon is taking it to a whole new level . Using machine learning and behavioral data analysis, Amazon's can precisely tailor products to the user's current needs within just a few minutes of a shopping session.
Traditional personalization relied primarily on purchase history and simple recommendation algorithms that suggested products based on previous transactions. Modern AI systems go much further, analyzing hundreds of variables simultaneously, taking into account not only past purchases but also:
- Actual user behavior in real time – AI tracks what products a user browses, how long they stay on them, and whether they add them to their cart but don’t ultimately buy them.
- Seasonality and market trends – algorithms take into account current purchasing trends, e.g. the popularity of products at a given time of year.
- Comparisons with the behavior of other users – AI analyzes the purchasing patterns of customers with similar preferences and tailors recommendations based on this.
- Browsing Context – If a user is browsing on a mobile site, they may see different recommendations than if they were visiting on a desktop computer, as purchasing intent varies across devices.
- Dynamic offer optimization – prices and promotions can be adjusted in real time based on predicted user purchasing intentions.
Thanks to these mechanisms, Amazon not only improves the accuracy of product recommendations but also enhances the effectiveness of sales strategies. An example is the "Customers who viewed this item also viewed" feature, which dynamically evolves based on current user interactions.
AI Personalization and User Experience
Deeper personalization has a direct impact on the shopping experience and customer satisfaction. The better the system understands user preferences, the greater the chance that:
- He will find exactly what he is looking for without having to spend a long time searching through the offers.
- They will receive recommendations for products that truly interest them, instead of random suggestions.
- He will discover new products and brands that may meet his needs but that he would not have found on his own.
A practical example: a user looking for headphones can see recommendations not only based on popular models, but also tailored to their previous purchases – for example, if they have previously purchased Apple equipment, AI will suggest compatible accessories.
What awaits us in the future?
Personalization in the digital world is constantly evolving. The next step could be hyper-personalized AI ads Voice assistants may also play an increasingly important role , dynamically suggesting products based on previous conversations and user preferences.
If e-commerce companies want to compete with giants like Amazon , they should invest in AI technologies that will allow them to offer equally advanced personalization in their own online stores.
What can companies in the digital world do to implement similar solutions?
Implementing personalization based on artificial intelligence and data analysis is no longer the exclusive domain of giants like Amazon . More and more digital companies—including medium-sized and smaller ones—can benefit from tools that help build personalized shopping experiences . The key is to intelligently combine data, technology, and automation.
- Analyze user data in real time.
Customer behavior data is one of the most valuable assets in the digital world. Companies should invest in advanced analytical systems that not only display historical data but also enable monitoring of current interactions . Collecting information about products viewed, filters used, time spent on the site, and abandoned carts is crucial. Marketing automation is a great tool to support such efforts – such systems can automatically respond to specific user behaviors, for example, by sending personalized push notifications or email recommendations. - Test AI-powered tools
There are ready-made AI-based personalization tools available on the market that can be integrated with most online stores. It's worth starting by implementing product recommendations that take into account both purchase history, What current user behaviorExamples include platforms such as:- Google Analytics 4 – provides advanced analysis of purchase paths and user segmentation.
- QuarticON – specializes in AI-based personalization in online stores.
- Synerise – combines AI with marketing automation, creating a coherent personalization management system.
- Marketing automation tools – systems such as SALESmanago , HubSpot or GetResponse can automatically tailor content to customer segments using AI data.
Testing different tools allows you to find a solution tailored to your industry and company budget.
- Segment your customers with marketing automation
The more precisely a company can segment your customers, the more effective its personalization activities become. Customers are divided into groups based on:- Preferred product categories.
- Stage of the purchase path (new, returning, loyal).
- Average order value.
- Purchase frequency.
It enables the creation of dedicated marketing campaigns and dynamic content on online stores. Marketing automation allow not only for automatic assignment of customers to appropriate segments but also for personalization of communication via email, text messages, and push notifications.
- Integrate data from various channels.
Effective personalization requires a complete customer picture—not just what they do in the online store, but also their interactions on social media, responses to email campaigns, and offline behavior (if the online store combines sales with brick-and-mortar locations). A CDP (Customer Data Platform) or advanced CRM systems with automation can build such a 360-degree customer profile , which will become the foundation for personalization at every stage of brand interaction. - Personalize dynamic content on your online store website
Personalization is not just about product recommendations – it is also about dynamic matching:- Promotional banners.
- Categories displayed on the home page.
- Special offers.
marketing automation tools , you can create different variants of the home page or category pages, tailored to different customer segments – a new user will see a different version, and a regular customer will see a different one.
Digital companies that begin investing in advanced AI-based personalization and marketing automation can expect greater customer loyalty , higher conversions , and improved sales results . However, the key is to gradually build such solutions and continually optimize them – only then will personalization become an effective tool for building a competitive advantage.
Is real-time personalization becoming the standard in the digital world?
Amazon , as one of the leaders in the global digital world, is setting new standards that will sooner or later be copied by smaller platforms and independent online store owners. When it comes to personalization, or even hyper-personalization, it's already happening; it's the e-commerce trend of 2024, but thanks to AI solutions, we can also implement real-time tools today.
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