Commentary

How AI technology is influencing Gen Z engagement strategies

Gurps Rai, CIO of DroppTV, explains how artificial intelligence can help retailers develop a personalized retail customer experience and how to best utilize AI to generate its required results.

Photo by iStock.com

November 28, 2018

By Gurps Rai, CIO, DroppTV

The past decade has seen artificial intelligence develop from a mere fantasy to a fully integrated part of a marketing strategy, for brands that look to differentiate and improve their customer experiences and online strategies.

Take Farfetch for example, which utilized RFID-enabled clothing racks and digital mirrors to allow its customers the choice of size and colour before directly checking out online. This particular use of AI shows the seamless integration of online and offline experiences, and proves that this technology has no end to the benefits and creativity it can bring for a brands engagement efforts.

Found at the core of AI technology is data and analytics, allowing brands to streamline digital ads and offer a personalized customer service. This can result in a significant lift to brands engagement efforts and empowers them to fully engage with customer at every stage of the purchase lifecycle.

We are entering a new era of engagement, driven by advancing technology developments that can help brands create personalized and targeted experiences, something that a new, emerging generation are all too familiar with. With this, it is essential that brands understand how to best utilize AI technology to generate its required results.

The rise of the influential generation

Generation Z is truly coming of age. This demographic brings with it unique experiences, new beliefs and influential behaviors that are unheard of for many brands. Just some of the challenges brands are faced with when trying to engage with this demographic include a lack of brand social media presence, non-personalized experiences and the short attention span that these consumers have adopted.

Not to be confused with millenials, who brands have already undergone a mass digital transformation for, Generation Z has quickly adopted the title of the first digitally native generation with the majority growing up in the era of touchscreen technology and voice-controlled devices. Brand trust is considered to be significantly low for this generation who are tired of being talked at or sold to on a daily basis. This really shines through when looking at their purchasing habits where research suggests that around six in 10 Gen Z's prefer spending money on experiences, rather than material goods.

Another key factor that this generation brings with it is the power of customer influence. We all know how powerful word of mouth can be, but in an age where customers are taking to social media to see what their latest blogger/influencer is wearing before deciding to purchase, it becomes very obvious which brands are paying attention to the new generation, and which are not. A great example of this is online clothing tycoon, FashionNova, who have utilized social media to create an empire based on Generation Z with clever social media campaigns to influence their target audience.

It has never been so important for brands to shift their engagement strategies to reach the new generation and understand their dynamic shopping habits, especially as this demographic will account for 40 percent of all U.S consumers by 2020. And with the growth and power of AI technology, who knows just how far brands can rocket their engagement efforts.

A ‘digital first’ era

AI is a very real, and very powerful tool. By identifying the wants and needs of Generation Z, brands can then apply the correct technology to align with these traits. With this data-driven marketing solution, brands are able to offer a more unique, personal and targeted experience, all of which stems from the sheer amount of data and intel already available.

Data can be sourced and fed into many different AI solutions, including programmatic advertising, chatbots and SEO optimization, which can then be used to offer this digital Generation a more personal experience when engaging with your brand.

Amazon is a key example of a fully integrated AI approach that can appeal to demands and desires of Generation Z. It is renowned for its utilization of AI technology, particularly through the use of machine learning on its shopping platform. More recently, with developments like Amazon Alexa, the brand has entered a new dynamic of engagement by adopting voice-control recognition.

By utilizing a joined-up approach of several different AI technologies, brands can leverage many benefits and improve its digital experiences that will ultimately support the customer journey.

It is certainly an unclear future for retailers relying purely on bricks and mortar to drive their business. However, a new generation is generating new opportunities to target for brands who are willing to adopt these technology advancements into their strategies. Brands who look to reach these customers will go along way in their ever growing, and competitive market.