The International Data Corporation (IDC) predicts that 40 percent of corporations will invite artificial intelligence into their operations and deploy it across all departments by the end of 2024. AI usage has grown significantly over the last few years. As an executive working at Spotify, I say it's about time.
Brands can't push the limits of what's possible in their industries without the support of artificial intelligence. What used to be a forward-thinking consideration afforded to only a handful of companies, AI is now a pillar all companies should use to prop up their operations. Artificial intelligence is why our platform has become the world's leading audio streaming service, and I believe it's a critical innovation that companies must leverage to do the same for themselves.
We wouldn't be the top streaming service today if it weren't for the tens of millions of listeners who use our platform to fuel their daily auditory listening experiences. Our listeners don't use our platform simply because we provide them with considerable music and podcast options. Their loyalty emanates from their satisfaction with their listening experiences — experiences that are intentionally cultivated by AI.
Happier customers create better business outcomes. How you use artificial intelligence to improve the customer experience can influence engagement, brand loyalty, and retention.
The Perks of Personalization
Most companies don't personalize their customer experiences in depth, and this is a significant barrier to growth. Your customers should feel like their experience was crafted just for them. Because it should be.
Artificial intelligence provides brands with data they can use to curate ads that appeal to a person's unique interests, suggest products that are more in line with their individual tastes, and even predict ordering behaviors to send relevant offers. Consumers want personalization. 76 percent of people get incredibly frustrated at companies that don't offer a personalized experience. This could reduce engagement, weaken your sales, and increase negative reviews.
Every time a listener logs into their Spotify, we want them to feel like they're in a bubble of their very own creation. Yes, they can create their own playlists and access their previously-searched artists, but it shouldn't fall solely on them to curate their listening experience. We use AI to discover how our listeners interact with our platform and provide them with music and podcast recommendations, like our 'Discover Weekly' playlists, to optimize their experience and introduce them to artists and creators they likely wouldn't have found on their own.
Showing customers how you add value to their lives is what sets you apart from other competitors.
User-Friendly Navigation
Any time you put a barrier in the way of convenience, you risk losing customers. Brands must consider user-friendliness at every touchpoint of the customer journey. Is your website easy to navigate? Are your product pages descriptive and transparent? Can customers easily get a hold of your customer service team? Do your ads steer consumers to the right place? If any of these elements lack coherence or accessibility, you wear down the entire customer service experience.
One way we're working on streamlining user-friendliness is by using AI to power our natural language search. Our listeners no longer have to type in exact words in the search bar to produce results. Instead, natural language processing (NLP) does a better job of analyzing the semantic correlation between words so our listeners can find what they're looking for with more ambiguous descriptions. This takes the pain points out of trying to identify artists, songs, and podcasts with less context so they can find audio faster than before.
Customers shouldn't have to work hard to fall in love with your brand.
More Effective Ads
Artificial intelligence helps brands better understand consumer behavior so they can more effectively influence it. A recent study found that gearing targeted ads toward certain demographics had a positive impact on click-through rates and conversions. Companies should be tapping into AI for these very benefits.
One of the biggest trends in marketing right now is interactive ads. The average person sees between 6,000 to 10,000 ads every day. If your ads don't stand out, they're going to be buried in monotony and mediocrity. Companies that advertise on our platform have access to our call-to-action (CTA) cards, which pop up in the app and take consumers directly to a company's website or product. Consumers don't want to have to remember URLs or promo codes anymore, so delivering more targeted and interactive ads straight to their devices is a great way to get their attention.
Brands can do the same whether they advertise on audio platforms or not. Artificial intelligence uses data to segment customers into groups based on their behaviors and profiles so you can more effectively drive them to buy a product or service from your company.
Business success is all about creating a memorable experience for consumers. If you're not using AI to enhance your customers' experiences, you're severely limiting your potential.