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The ROI of personalisation: Why D2C brands are betting big on AI
- India has witnessed a significant rise in direct-to-consumer (D2C) brands, driven by factors like increased internet penetration and government support for e-commerce.
- D2C brands leverage platforms like Shopify and quick commerce services for visibility and quick delivery, aligning with consumer preferences.
- The pandemic accelerated the shift towards online shopping, leading to the emergence of consumer-first brands that prioritize direct relationships with customers.
- D2C brands face challenges such as intense competition and high marketplace fees, necessitating innovation and differentiation strategies.
- Personalization is crucial for D2C brands as it enhances customer satisfaction, engagement, and loyalty by tailoring shopping experiences to individual preferences.
- Brands utilize personalization methods such as automated messages, real-time adjustments of ads, and personalized video content to drive customer interactions.
- AI plays a key role in enabling personalized experiences for D2C brands, helping in creating tailored shopping experiences, predicting demand, and optimizing inventory levels.
- AI-driven personalization leads to higher conversion rates, better customer retention, and lower acquisition costs, making it a strategic investment for long-term success.
- By leveraging AI, D2C brands can analyze customer data, identify trends, and adapt marketing strategies, ultimately enhancing the overall customer experience.
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