How Brands Use Generative AI for Hyper-Personalised Customer Experiences

Generative AI technologies have the potential to transform a wide variety of customer touchpoints, including e-commerce sites, targeted advertising, and the customer experience in physical stores.

In the past, chatbots on shopping sites and brand websites have generally been limited in their applicability, with customers selecting the closest match from a list of several pre-prepared questions, to which canned responses are returned.

Today, however, since AI models such as ChatGPT have become widespread, generative AI offers a fascinating prospect for the next generation of customer service in the areas of interactive communication and multilingual support.

Using existing tools such as Writesonic, for example, a basic chatbot can be built in as little as 10 minutes. Chatbots such as ChatGPT can be customized, and brands can implement their own data and training models to provide more accurate and personalized service. It is also predicted that in the future, conversational agents will be equipped with more precise and accurate AI.

Below are some of the brands that are taking on the challenge of further improving the customer experience by leveraging generative AI and providing personalized services.

Kering

Kering, the world’s second-largest luxury conglomerate after LVMH, launched its innovative fashion space “KNXT” this April to curate content and test new ideas. Utilizing cutting-edge technologies such as artificial intelligence (AI) and non-fungible tokens (NFT), “KNXT” offers visitors a unique shopping experience.

A notable feature of KNXT is an AI-powered personal shopping assistant called “/madeline,” which uses OpenAI’s ChatGPT. Through “/madeline,” visitors can shop at a wide range of Kering’s top brands, including Gucci, Bottega Veneta, Alexander McQueen, and Balenciaga.

In addition, “/madeline” provides not just product suggestions, but also additional information such as fabric details, product origin, and care instructions. The idea is to enhance the customer’s shopping experience and enable them to make informed decisions while exploring Kering’s diverse range of branded products.

Zegna

“I’ll tell you what a luxury experience is for me. I should be able to walk into a store and there is a room that is only in products of my size,” said Edoardo Zegna, the brand’s chief sustainability and marketing officer.

Courtesy of Zegna

Italian luxury fashion brand Zegna announced the release of its digital ecosystem “ZEGNA X” in March this year. This was jointly developed by Zegna and Microsoft to bridge the gap between brick-and-mortar stores and digital channels with AI-based shopping customization tools.

“ZEGNA X” is designed to analyze customer preferences and make customized recommendations, suggesting items and coordinates that best suit their appearance and personality. In addition to the personalized customer service of these style advisors, the site also features a “Made to Measure Service” that can create custom-made products consisting of 49 billion different fabrics and styles of clothing in just four weeks or less, and deliver them worldwide.

“ZEGNA X” was first introduced at Zegna’s flagship Montenapoleone store in Milan, and will be expanded to other stores around the world. In addition, in 2024, the “ZEGNA X” configurator will be integrated into Zegna’s official website, allowing customers to customize a variety of looks for luxury leisurewear items and other collections online via their personal devices.

Stitch Fix

Stitch Fix, an artificial intelligence-based personal styling service, works with powerful AI models that specialize in text-to-image conversion. These generative models efficiently analyze large volumes of customer feedback and assist stylists in curating products that match customer preferences and buying patterns, thereby enabling them to provide enhanced styling services, increase sales, and improve customer satisfaction.

The AI tool is also capable of analyzing a wide variety of customer feedback, including text comments, e-mail requests, product ratings, and online postings. By identifying recurring themes, for example, positive comments about a particular style of pants, such as “I like the color” or “they are comfortable,” Dall-E can generate images of similar pants that might be of interest to customers. Stylists can then leverage Stitch Fix’s inventory to find similar products and provide personalized suggestions to customers.

Zalando

Germany’s leading fashion e-commerce site, Zalando, is currently trialing a generative AI and powered chatbot tool and plans to expand its capabilities. Zalando is looking to improve the customer experience by leveraging OpenAI technology to allow customers to use their own fashion terms and vocabulary when interacting with the platform.

For example, a customer could ask a specific question, such as “I am having a wedding in Santorini in July, what clothes are appropriate?” and the chatbot fashion assistant would understand the context, such as the type of event and weather, and make customized product recommendations accordingly.

Courtesy of Zalando

In the future, the company also envisions offering a more personalized product selection, combining the customer’s preferences and size with the brands they follow and the products available for purchase.

“We are committed to understanding our customer’s needs and preferences even better, and we are eager to explore the potential that ChatGPT can bring to their shopping journey. As we continue testing and introducing new solutions, our focus remains on learning how our customers want to interact with our fashion assistant to provide them with the best possible experience,” said Tian Su, VP of Personalization and Recommendation at Zalando.

This consumer-centered launch has great potential and will be watched closely in the future.

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