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How AI Can Enable Personalisation Through Emotional Understanding

Posted by Olivia on 01-Oct-2024 12:54:57 | 4 Minute Read

In today’s rapidly evolving digital landscape, personalisation has become a key element of effective marketing strategies. With the increasing influence of AI, businesses are discovering new ways to tailor their marketing efforts to individual consumer needs and behaviours. In the latest episode of Digital Marketing Answered™, our CEO, Tim Butler has an insightful discussion with Yuwon Song, Sales Director and Head of Business Development at Symanto, as she delves into the intriguing connection between AI and personalised customer interactions.

Yuwon explains how businesses can utilise AI-driven market research insights to improve engagement and achieve concrete results. The conversation addresses everything from understanding consumer motivations to the ethical implications of AI.

Want to listen instead? Find the full interview on apple podcasts or listen on Spotify. Don’t forget to subscribe to our YouTube channel to get the latest Digital Marketing Answered™ updates.

Who is Symanto?

Symanto was established in 2010 in Nuremberg, Germany, by Khaleeq Aziz and Michael Klieber, who brought a unique background in forensic psychology and market research to the forefront of consumer profiling. The company originated from their innovative concept of automating the analysis of language patterns, a skill Khaleeq honed while profiling psychopaths through his background as one of the first forensic psychological profilers in the UK. By uniting experts in linguistics, psychology, and computer science, Symanto developed a distinctive AI tool that uncovers psychological insights from text, transforming the way businesses understand consumer behaviour. 

Introduction to AI-Driven Personalisation

As Yuwon Song explained during the podcast, AI is no longer a distant concept but an integral tool in the modern marketer’s arsenal. “At Symanto, we’ve built a native language AI that combines psychology and business intelligence to understand people and market dynamics through language,” she said. This AI-driven approach allows businesses to gain deeper insights into consumer behaviour, moving beyond traditional demographic segmentation to a more nuanced understanding based on psychological traits.

This shift from demographic to psychographic segmentation is critical in today’s market, where consumer behaviour is often unpredictable and contradictory. For instance, while Generation Z often advocates for environmental responsibility, their purchasing habits, such as the popularity of fast fashion brands like Shein, tell a different story. By understanding the motivations and emotions behind these behaviours, businesses can create more effective and targeted marketing campaigns.

 

The Power of Psychographic Segmentation

Symanto’s AI was able to segment customers into distinct groups based on their psychological traits. One of the most compelling examples Yuwon shared was how Symanto helped Adidas better understand its footballwear customers by using this method of psychographic segmentation. “We started by analysing external data sources where people talked about football products, including competitors. We collected millions of comments, filtered by data source, country, and timeframe, to understand trending topics and sentiment,” she said. Yuwon described two of these segments in detail:

1. The “Cristiano Ronaldo” Type:

As part of this discussion, Yuwon references one of the customer types utilised by Adidas, the "Cristiano Ronaldo" customer type—an emotionally driven segment that thrives on new product launches and shows less brand loyalty, particularly engaging on platforms like Instagram. These people responded better to new and trendy products.

2. The “Bastian Schweinsteiger” Type:

In contrast, this segment is more rational and team-oriented, with a focus on performance-enhancing products. This group shows higher brand loyalty and prefers detailed, logical explanations about why a product would benefit them. Forums and review sites were more effective channels for engaging with this audience.

By integrating this segmentation into Adidas’ CRM system and tailoring marketing messages accordingly, the company saw a significant improvement in its campaign performance. “We saw a 35% increase in open rates and a 160% higher sales conversion for the adapted messages,” Yuwon highlighted. This case study illustrates the immense potential of psychographic segmentation in driving marketing success.

 

Ensuring Privacy and Ethical AI Usage

With great power comes great responsibility, and the use of AI in personalisation is no exception. Yuwon emphasised the importance of maintaining integrity in data usage and adhering to privacy regulations. “We’re fully compliant, and one of the simplest answers is that we’re ISO 27001 certified, which means we adhere to the highest standards of data security,” she noted.

Symanto’s approach ensures that personalisation is done ethically, with full compliance with regulations such as GDPR. This involves working only with data where consumer consent has been obtained and ensuring transparency in how AI is used. As Yuwon put it, “We only work with clients who have obtained consent from their customers for personalised marketing, and we help them communicate how AI is being used in a clear and transparent way.”

 

The Future of AI in Personalisation

Looking ahead, Yuwon predicts that the future of AI in marketing lies in hyper-personalisation, where AI not only understands consumer behaviour but also their emotions in real-time. “So far, we’ve focused on cognitive insights—what people say and why. But the next frontier is in understanding emotions,” she explained.

This development will require a blend of AI and human intelligence, especially in areas like customer service, where understanding a customer’s emotional state could significantly enhance the interaction. “For instance, an AI could help a call centre agent understand the emotional state of the customer and suggest tailored responses. This is the future we’re working towards,” Yuwon said.

Harnessing AI to Uncover Deeper Consumer Insights

As AI continues to evolve, its role in enabling personalisation will only grow more critical. However, as Yuwon wisely advised, “AI is a tool, not a magic wand. It’s here to help us understand people better, but it requires human intelligence to implement it effectively.”

At Innovation Visual, we believe in harnessing the power of AI to enhance our clients’ marketing strategies, helping them to reach more relevant audiences, generate higher engagement, and ultimately increase sales. By combining AI-driven insights with creative, data-driven marketing strategies, we help businesses not only meet but exceed their goals.

To learn more about how we can help your business leverage AI for personalised marketing, get in touch with us today. And don’t forget to listen to the full episode of Digital Marketing Answered™ for more fascinating insights from Yuwon Song.

To get in touch with Yuwon Song directly, please contact through her LinkedIn page.

To find out more about Symanto and the ground-breaking work they do, head to their website.

For more interesting discussions, make sure to tune into our next episode of Digital Marketing Answered™, and don’t forget to like, subscribe, and comment on our YouTube channel.

 

Topics: Technology, News, Content, Privacy, Strategy, The State of Marketing, Digital Marketing, Lead Generation, Artificial Intelligence (AI), Personalisation, Digital Marketing Answered, Data, B2B

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