Redefining Personal Touch: AI-Driven Consumer Experiences

In the rapidly evolving landscape of consumer interactions, the integration of Artificial Intelligence (AI) is revolutionising how businesses engage with their audiences. AI technologies are reshaping traditional notions of personalisation by leveraging vast datasets and advanced algorithms to deliver tailored experiences at scale.

In this era of digitisation, where virtual interactions often replace face-to-face encounters, AI-driven consumer experiences are becoming increasingly pivotal. From personalized product recommendations to responsive chatbots, AI enables brands to anticipate and fulfil individual needs in real time, fostering deeper connections and enhancing customer satisfaction.

This introductory exploration delves into the transformative potential of AI in reshaping consumer experiences, exploring how businesses are leveraging this technology to redefine the notion of personal touch in the digital realm.

Everything Experiential spoke to brand experts on how AI is altering traditional concepts of personal touch when it comes to consumer experiences, about brands utilising AI in creating consumer experiences to build trust and transparency and AI–driven consumer experiences impacting brand loyalty and customer retention.

AI Transforming Traditional Perspectives of Personal Touch in Consumer Experiences

Rajeev Dubey, Senior General Manager - Head of Media, Dabur India brings out, “One is that it enables to sharp-target in a very good manner. In terms of targeting, in terms of personalising the experience to a consumer – AI plays a distinctive role there.

Secondly, is the use of AI for the creation of personalised communication. So in these two areas, it is very useful, currently.”

Puneet Gulati, Chief Marketing Officer, VLCC understands that AI is undoubtedly impacting anything and everything that has to do with the consumer these days, across the consumer. “Specifically, when it comes to beauty, there is a lot of intervention of trying to bring what could be potentially only offline experiences to now consumers at hand, digitally – AI starts to play a role there.”

He cites the example of the skin analyser. “It is an AI-gen-based tool where you analyse somebody's skin and give them a recommendation that this could be a problem area. This is the kind of science that can go behind the treatment, and this is the kind of recommended course of action for that particular problem. So it brings in personalisation and something more precise. It gives an estimate of what is the problem. It's more accurate, more scientific, more personalised. So, that is one of the biggest use cases that is currently impacting the everyday consumer experience.”

AI Creating Personalised Consumer Experiences to Build Trust & Transparency

Dubey emphasises that when it comes to building trust and transparency, it comes with experience. “Personal experience builds trust over a period of time. Trust is not built simply over one transaction.”

Typically, FMCG businesses are prepaid order businesses. So trust is built over a period of time, just like Dabur, where trust has been built for over 140 years. And that's a long way to go versus a very transactional brand, and you have only one transaction in a lifetime. So, in businesses like ours, when you see the person buying a product again and again, on a repeat procedure, that's where trust comes in. So AI can help you reach a consumer, but ultimately the product has to stand for itself in building the test.”

Gulati thinks that it is about staying true to the brand value. “As a brand, as an organisation, as a marketer, you need to be true to that aspect. And to be honest, I haven't come across a place where you would want to exercise these and you've not been able to. So I think technology gives you that leverage. It's how you use it is critical. And I think personally, I think that it is important that you use it in a way that you respect that there are always safeguards available. Whatever your tool, there is always an option for you to exercise it in line with the expectations of the consumer. So I think if the intent is there, then there is no challenge."

Focusing on the points of transparency and trust, he adds, “The entire interaction that we have is based on trust - it's a very personal, customised, consultative based selling experience.

You consult the consumer; you provide them with the right approach. So trust is inherently built into the way we approach our consumers and in terms of the way we interact with them. Eventually what happens is that the consumer walks into your beauty clinic and now they are with you, seeking your advice, seeking your consultation.

And I think it's about how you guide them, which way you steer them that matters. So that is key to how we use that opportunity that we have with the consumer, how we use experienced dermatologists and experienced physiotherapists in the clinic. So they are present. There is a qualified team of people who speak to the consumer. That brings credibility, and trust because you are not speaking to someone who is simply a beauty advisor in a store, you're talking to an expert. I think that is critical.”

AI-driven Consumer Experiences Impact Brand Loyalty & Customer Retention

When it comes to brand loyalty and consumer retention, Dubey mentions that AI is simply a medium. “It can take you to the consumer, and it basically can reinforce whatever communication is, or say, by the virtue of creative, etc. But ultimately, the product has to stand by itself.”

As per Gulati, AI is a very broad term. “But the AI-driven solutions, if they are precise and accurate, I think they enhance your experience rather than having to get a very generic advice to something more specific, tailor-made and personalised.”

He also points out the factor of losing trust, “It does have its dangers of going the other way around. If it is not precise and does not understand you, then you start to lose the trust. I think that's where you have to be slightly careful as you're adopting the solution. And hence, for us, the physical contact or touch base is still very important when it comes to our consumers and how they, the kind of beauty advice that they get.”