Personalization at Scale: How AI-Generated Video Content is Boosting Customer Loyalty for Brands

July 31, 2023

It’s no secret to any marketer any more. Personalization has become more important than ever. Customers want to feel important and understood. One of the best ways for brands to achieve this is to deliver personalized communication and content to customers. However, creating personalized content for each individual customer can be a daunting task, for all types of brands but especially for larger brands with a large customer base. This is where AI and its capacity to learn and generate personalized content at scale come in. In this article, we will explore the rise of AI-generated personalized video content and how it is boosting customer loyalty for brands.

What is Personalization at Scale and Why is it Important?

Personalization at scale is the ability to create personalized content for a large number of customers at once. It is crucial because consumers are more likely to interact with and support brands that are aware of their preferences and needs. Additionally, personalized content can boost conversion rates and customer satisfaction. However, it can take a lot of time and money to create content specifically for each customer, for both small and large brands who have large customer bases.

Loyalty is more up for grabs now since consumers have more information and more options. That means personalization is no longer just a nice-to-have, consumers demand it and expect it. According to research from McKinsey & Co., 71 percent of consumers expect companies to deliver personalized interactions. And 76 percent get frustrated when this doesn’t happen.

Gone are the days when a one-size-fits-all approach was enough. Today, people want to feel like their shopping experiences are tailored specifically to them – whether browsing on a website, using a mobile app, or even shopping in-store. Buyers want personalization to be the norm, not the exception.

So, if you’re a business looking to stand out in today’s competitive market, you better be ready to step up your personalization game. Trust me, your customers will notice.

Why Video Personalization?

Video marketing has become an essential tool for businesses to engage with their audiences, and its popularity continues to soar. In the last four years, consumers have increased their weekly video consumption by an average of 8.5 hours. This rapid growth is because videos are so good at getting people’s attention and getting their messages across in a snappy but interesting way.

Furthermore, studies have shown that audiences are 10 times more likely to interact with video content than with traditional text or image-based content. The reason for this is simple: videos create an emotional connection with the viewer, making them more likely to engage and share the content with others. The rise of Tik Tok, as well as Facebook and Instagram becoming more video centric rather than photo centric are just further indications that this trend is only starting.

The most effective videos are those that feel personal, but recording individual messages for thousands of customers, followers, or employees is impossible. This is where AI solutions that can help you scale personalization come in. AI can help you create personalized videos based on your customers’ data or preferences so you can engage with your audience on a more personal level, creating a deeper connection and driving better results for your business.

The Rise of AI-Generated Personalized Video Content

AI-generated personalized video involves using generative artificial intelligence to create personalized video content for each individual customer. ChatGPT exploded in December 2022, getting one million users in just a few days and demonstrating the power of generative AI. However, it’s just the tip of the iceberg. Right behind it are many other exciting models being developed that are disrupting the way audio, text, image, and video content is created.

One example is the rise of other open source AI models and generative AI tools. They are helping make this technology more accessible for brands of all sizes, with tools and platforms leveraging generative models like Maverick which helps you create and send AI-generated personalized videos at scale. You only have to record yourself once and their AI will generate multiple versions of the video where you greet each customer or recipient by name.

Benefits of Using Personalized Video Content for Customer Loyalty

Personalization drives performance and better customer outcomes. There’s a significant correlation between a company’s success in personalization and its revenue. Companies that excel at personalization have been found to generate a whopping 40 percent more revenue from these tactics than average personalization players in the market.

Video is now the most engaging medium and throwing personalization into the mix you can only expect to multiply your positive results. Using personalized video content across the different stages of the customer lifecycle can help to dramatically increase their engagement and satisfaction. Customers are more likely to engage with video and if the video content is tailored to their needs and preferences, that becomes a multiplier on top. This can lead to higher conversion rates, increased customer loyalty and higher customer LTV. 

Personalized video messages sent at different moments in the customer journey can help to build emotional connections with customers and nudge them further into the funnel. Customers are more likely to feel loyalty towards a brand when they believe it understands their needs and preferences and cares enough to send a thank you video message after a purchase, for example. This leads to increased customer retention and customer lifetime value.

Examples of Brands Successfully Using Personalized Video Content

There are now many examples of brands that have been successfully using personalized videos to boost customer loyalty. 

  1. Netflix uses personalized video content to recommend TV shows and movies to each individual customer. This has led to increased customer satisfaction and retention.
  2. Sephora uses personalized video content to provide makeup tutorials and product recommendations to each individual customer. This has contributed to their strong results in retention rates, growth and conversions.

Moreover, a new generation of highly successful e-commerce brands have joined the AI revolution and have been using AI tools to create powerful and hyper personalized video experiences for their customers. Brands like Bruce Bolt or Javy Coffee use tools like Maverick to send their customers automated AI generated personalized videos at scale getting them hundreds of positive comments from highly impressed customers, more recovered abandoned carts, repeat purchases and high engagement metrics.

Best Practices for Creating Effective Personalized Video Content

Effective personalized video content demands meticulous preparation and execution. Here are some recommendations to remember:

  • Use data to personalize the content: Personalized video content should be based on strategic and constantly updated data you can collect such as customer preferences, buying history, and demographics. CRM or Customer data platforms are crucial to collect, organize and update this data. Video tools that have good integrations with these CRM’s and CDP platforms are the best positioned to provide the type of personalization you should aim for.
  • Keep the video short and engaging: Personalized video content should be short and engaging to capture the customer’s attention. In this era of Tik Toks the attention span of your video recipients is shorter than ever.
  • Use short and sweet messaging: The messaging should be clear and concise to ensure that the customer understands the content.
  • Test and optimize: Test, iterate and constantly improve the content to make sure it connects with customers and gets the results you want.
How to Integrate Personalized Video Content into Your Marketing Strategy

Adding AI personalized video content to your marketing plan is crucial these days to stand out from competitors and to ensure your customers are happy and coming back. Here are some actions and steps you can start considering right away:

  • Identify your target audience and their needs: Understand your target audience and their needs to create personalized video content that resonates with them. Understand your ideal customer persona well, for example, does sending personalized videos make more sense for your older customers or for your more recent ones?
  • Identify the most impactful use cases: Should you personalize product tutorials post purchase or video messages along the customer journey? Where do you get the most impact? Look at your data or read your customer feedback to identify large drop offs or common problems reported. These are opportunities where personalized videos can have the highest impact and can help you close meaningful gaps. 
  • Use the right data to personalize the content: Data points like the customer’s name, age, product preferences, buying history, etc. are essential to personalize your content effectively. Saying the person’s name in the video will make you unforgettable. Sending an AI generated personalized video where you thank a customer by name right after purchasing is a very clever strategy that will help drive loyalty. These small gestures may sound trivial but they make a world of difference when scaling in business.
  • Choose the right platform: Choose the right platform to create and distribute the personalized video content. There are many tools and platforms available, so choose the one that best suits your needs. For personalized video messages sending via private email or text can be more effective and easier to execute than trying to personalize public social media videos or ads.
  • Use AI and automation as much as possible: AI is your best friend in this area. Personalization is the business use case of AI. This is where you’ll see the most impact with AI. Take advantage of tools like Maverick that make it possible to create highly personalized videos at scale where you call each customer by name with very little time commitment and from just one recording.
Conclusion: The Future of Personalized Video Content and Its Impact on Customer Loyalty

In the world of marketing, personalization is becoming more and more significant. 71 percent of consumers expect companies to deliver personalized interactions. And 76 percent get frustrated when this doesn’t happen. As video becomes the most engaging medium among consumers, brands that are able to personalize video content for their customers will win big. Brands can now produce personalized content for a large number of customers at once thanks to the rise of generative AI and tools like Maverick, Vidyo AI, and others innovating in the space. Maverick for example, allows brands to automatically send AI-generated personalized video messages at scale from just one video recording. The use of tools and technology like this is increasingly becoming essential to improving client satisfaction and loyalty and delivering the personalized experience that customers now demand. We can anticipate seeing more brands use generative AI to increase customer loyalty as personalized video content becomes more widely available.

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