As discussed previously on Retail Technology Insider, artificial intelligence (AI) is taking the retail world by storm. Companies know that it’s a technology that offers invaluable insights and can easily automate administrative tasks for business leaders, allowing more time and energy to be spent on strategic efforts. But beyond streamlining administrative work, AI empowers retailers to better understand their customers’ preferences and, in turn, helps increase conversion rates and brand loyalty.
A shining example of a company leveraging that knowledge is Airbnb. In a recent article on Inc., Sonya Mann discusses how Airbnb has cracked the code when it comes to making every bit of customer information valuable. Airbnb’s AI and machine learning technology allows the company to create a booking experience for their customers that essentially anticipates their unique needs. And of course, that experience results in higher conversion rates.
What Airbnb understands is that booking travel is no longer a simple price comparison among travel providers – travelers are also looking closer at location and thoughtful amenities. And understanding booking behavior starts with analyzing search trends. Mann explains in her article, “Search results aren’t generic, but rather based on your exact profile, your past behavior on the platform, and the behavior of users similar to you.”
Airbnb’s AI-powered strategy is something that competitors and other sharing-economy companies should be watching. In an increasingly connected world, data can be harnessed from so many portals and, with the right platform, can be translated into a better customer experience that will retain business. An intuitive offering that presents customers with exactly what they’re looking for is what will rule the day. The data is out there, it just has to be put to work by machine learning tools.
Personalization is the way to a customer’s heart. And in today’s hyper competitive retail landscape, waiting for a customer’s feedback on what they like and what they don’t is just too passive. Listen to what your customers are telling you through their behavior and provide them an experience that they would be excited to repeat.