Balancing AI and personalisation

Suhaib Zaheer at Cloudways describes how small and medium sized businesses can balance AI implementation with personalisation

In today’s rapidly evolving business landscape, SMBs must continually reinforce their competitive edge to thrive. While large organisations often attract customers with lower prices, many consumers remain loyal to SMBs for their personalised service and transparent values. Research shows that 57% of shoppers choose small businesses to support their local community, 43% prefer their quality and service, and 29% appreciate the ease of determining ethical sourcing. These factors give SMBs a strong competitive edge, but is it enough to stay ahead?

Despite the clear benefits of digital transformation, many SMBs believe that advanced technologies like AI are out of their reach. Fortunately, this perception is changing. One in three (38%) small businesses in the UK have or are considering using AI. While AI is becoming more accessible to SMBs, the challenge lies in leveraging it effectively without compromising the personalised touch that sets them apart.  

By focusing on a strategy of personalization, SMBs can strike the right balance between technology and human connection, delivering tailored experiences at scale.

Making smart moves with AI implementation

When integrating any new technology, especially AI, it’s important to be strategic and remember that AI should complement, not replace the strengths of a business. 

However, being smart with AI also means understanding its limitations. While AI can automate routine tasks and streamline operations, it lacks the emotional intelligence and contextual understanding that customers value in human interactions. Relying too heavily on AI without maintaining a human element, risks eroding the personal connection and trust that set SMBs apart from larger competitors.

Incorporating AI effectively requires balance. Take infusing AI into the customer service function with a chatbot. AI-driven chatbots are great for handling routine inquiries, but more nuanced or sensitive interactions still benefit from human input. AI might provide personalised recommendations, but a knowledgeable staff member can offer that extra layer of expertise and care that an algorithm simply can’t replicate.

Maximising impact during seasonal peaks

For major shopping events like Black Friday and Cyber Monday, AI can play a key role in leveraging your website to strengthen customer relationships. A few ways include: 

• A bespoke site view for every customer – AI algorithms can track and analyse a visitor’s past interactions, preferences, and real-time behaviour. Based on this data, you can automatically adjust the site landing page to show the most relevant products, offers, and content for that specific user. That way, a returning visitor will be shown products they’ve previously viewed, paired with personalised discounts or offers tied to their shopping history or abandoned cart.

• Tailored messaging – AI can personalise messaging, highlighting eco-friendly products for sustainability-minded shoppers or showcasing local brands for customers who value community-driven businesses. This level of personalisation makes every visit feel unique, boosting engagement and conversion rates. 

• Elevating marketing efforts – In the lead-up to Black Friday, AI can help identify high-value shoppers and send them personalised offers, increasing the likelihood of repeat purchases. Automated email campaigns, triggered by browsing behaviour or abandoned carts, can re-engage potential buyers right when they’re ready to spend.

• Enhanced customer service support – AI-powered virtual assistants or chatbots can quickly resolve common queries, freeing up your human staff to focus on more complex customer needs. This ensures your service quality remains high, even during busy shopping periods, keeping customers satisfied and engaged. 

Don’t lose sight of your brand’s USP

As SMBs compete in markets dominated by major retail brands, maintaining a focus on personalisation is crucial to building and retaining a loyal customer base. While AI offers powerful tools to streamline processes and enhance the customer journey, it’s important not to lose sight of what makes your brand unique. By using AI to enhance personalisation efforts, SMBs can thrive in a marketplace where customers increasingly value authenticity and connection.

Ultimately, the key to long-term success lies in striking the right balance. AI can enhance efficiency and personalisation, but it’s the unique, human-centred qualities of your brand that will keep customers coming back. When implemented thoughtfully, AI can complement the business strengths, while delivering the kind of customer experiences that set SMBs apart from larger, more impersonal competitors.

Suhaib Zaheer, is Senior Vice President & General Manager at Cloudways

Main image courtesy of iStockPhoto.com and grinvalds