By: Tushar Dhawan
The retail environment is experiencing a seismic change, undergoing a transformation swiftly. Who is responsible for this change? The omnipresent smartphone. Today’s clients, fueled by these devices and a boundless ocean of possibilities, demand a customised and frictionless purchasing experience. In this fast-moving economy, mobile applications have emerged as the foundation of effective retail strategy. Statista predicts an exceptional boost in mobile app downloads, with a predicted 258.2 billion by 2024, up from 218 billion in 2020. Nevertheless, with a swarmed app market and increased competition, retailers have now started to shift to cutting-edge technology, such as big data and artificial intelligence (AI), to fully modify mobile app marketing and separate themselves from the competition.
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The riches of data created by mobile app utilisation present a treasure trove of experiences for retailers. Each tap, swipe and buy uncovers important information about customer demographics, preferences, and buying propensities. Big data analytics opens this potential, empowering retailers to pick up a comprehensive understanding of their client base. This enables them to form data-driven choices that optimise marketing campaigns and personalise the customer journey inside the app, eventually upgrading the client encounter.
The next level of customer insights is achieved with the assistance of AI, which serves as the intelligent engine driving this information. By utilising machine learning algorithms, expansive volumes of information can be analysed to reveal patterns and make predictions about customer behaviour. This capability opens up new possibilities for businesses.
Hyper-personalisation: Suppose an application that curates product recommendations tailored to an individual’s past purchases, browsing history, and even climate conditions. AI can attain this level of personalisation by easily recognising subtle preferences and suggesting relevant items, causing higher engagement and conversion rates.
Dynamic content and pricing: AI can personalise product pricing and promotions in real-time as per the individual customer profiles. Such a dynamic approach makes sure that buyers receive the most relevant offers, increasing the perceived value and driving sales.
Micro-targeting: The days when generic app notifications were utilised are long gone. AI can now segment customer bases into micro-groups with similar features. Targeted push notifications with personalised messaging can then be delivered to the right customer at the right time, significantly improving campaign effectiveness.
Predictive analytics: AI can anticipate customer needs and wants before they even arise. By analysing past purchase patterns and seasonal trends, retailers can predict future demand and optimise inventory management. This not only reduces the risk of stockouts but also allows for targeted pre-launch campaigns, generating excitement for new releases.
Yet, the power of big data and AI comes with a responsibility to ensure ethical data collection and usage. Transparency is paramount. Retailers must clearly communicate how customer data is collected, used, and protected. Establishing trust with customers is essential for fostering long-term loyalty in an increasingly data-driven environment, demonstrating your commitment to ethical practices.
Here are some best practices for implementing big data and AI effectively in mobile app marketing:
Invest in a robust data infrastructure: A secure and scalable data management platform is essential to collect, store, and analyse large volumes of customer data efficiently.
Focus on data quality: “Garbage in, garbage out”(GIGO) applies to AI as well. Garbage In, Garbage Out (GIGO) refers to how the quality of an output is determined by the quality of input. Hence, ensuring data accuracy and completeness is vital for generating reliable insights.
Develop a clear data governance strategy: Establish clear guidelines on data ownership, access control, and security measures to ensure responsible data practices.
Build a team with the right skillset: Data scientists and marketing professionals who understand how to leverage data and AI for marketing strategy development are crucial.
The intelligent utilisation of big data and AI holds the key to the future of mobile app marketing. By harnessing customer insights and personalisation, merchants can forge a captivating and gratifying in-app journey, cultivating customer loyalty and propelling sustained expansion. As AI technology advances, we can expect the emergence of even more avant-garde mobile applications in the retail realm that will erase the boundaries between the physical and digital domains to craft a flawless Omni channel encounter for the modern, mobile-centric consumer.
The author is partner, Plus91Labs
(Views expressed are the author’s own and not necessarily those of financialexpress.com)
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