by
Michael Goldrich
Jun 1, 2024

The Evolution of Marketing – From Personalization to Engaging AI Agents

In today's marketing environment, personalization isn’t just beneficial; it's essential for effective consumer engagement. Personalization targets messages and offers to individual consumers based on their specific behaviors, preferences, and detailed data profiles.

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The Evolution of Marketing – From Personalization to Engaging AI Agents

by
Michael Goldrich
Jun 1, 2024
A.I.
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In today's marketing environment, personalization isn’t just beneficial; it's essential for effective consumer engagement. Personalization targets messages and offers to individual consumers based on their specific behaviors, preferences, and detailed data profiles.

ITS IMPACT IS PROFOUND — it enhances satisfaction and fosters loyalty by making each consumer feel uniquely valued. Personalized marketing strategies highlight a brand's recognition of each consumer's distinct needs, which is crucial in a market flooded with generic advertising. By leveraging individual preferences and historical data, companies can craft messages that resonate deeply, driving significant engagement and leading to higher conversion rates and enriched customer experiences.

The insights gained from these personalized interactions are invaluable, enabling brands to continually refine their strategies and offerings. This results in a dynamic feedback loop that perpetually enhances the accuracy and effectiveness of marketing efforts.

The Advent of AI

However, the marketing landscape is on the brink of a monumental transformation with the introduction of artificial intelligence (AI) agents. These sophisticated programs operate independently, making decisions based on learned preferences and behaviors. And they’re poised to revolutionize consumer interaction.

AI agents are expected to become a staple in our daily lives, handling tasks with remarkable efficiency — from ordering pizzas and scheduling meetings to planning travel and booking hotel stays.

The evolution from human-centric to AI-centric marketing signifies a major transformation in consumer interaction, emphasizing the shift toward AI agents that redefine the essence of consumer engagement. AI agents, unlike human agents, base their decisions on data, anticipated experiences, and empirical evidence such as
reviews and price comparisons.

As these agents become more embedded in daily life, we expect them to take on more complex decision-making tasks, such as content curation and financial management, enhancing personalization and efficiency. This development foresees a future where AI acts not only as an intermediary that deeply understands user preferences and behaviors but also as a central element in marketing strategies, positioning it as the new gatekeeper to consumer attention.

A Changing Dynamic

For industries like hospitality, this shift means rethinking traditional engagement methods. For example, hotels have long invested in developing preference centers that compile detailed customer profiles to customize experiences and offerings. These centers aim to gather a broad range of preferences, from room types to dining options, to inform targeted marketing campaigns.

Yet, as AI agents become more common, the preference center's role will likely shift to being managed by the consumer’s AI agent. Less personal data will be shared directly with the hotels.

For example, if a family is planning a trip, its AI agents will proactively search for hotels that meet the user’s specific requirements. If an AI knows its user prefers eco-friendly hotels with spa facilities within a certain budget, it will filter through options to find the best matches. This change alters the marketing power dynamics — hotels will need to ensure their services and attributes are clearly communicated and accessible to AI agents, perhaps through standardized data formats that AI can easily interpret.

The implications of this shift are substantial. Hotels will need to revise their marketing strategies to appeal not just to human emotions and preferences, but also to optimize their content based on various guest preferences. This might include implementing detailed metadata tagging of services, adhering to new digital standards for AI analysis, and maintaining real-time data updates to ensure AI agents have the most current information.

This shift is critical. As consumers increasingly rely on AI for decision-making, businesses that don’t effectively prepare content to be consumed by AI agents may become less visible in the market.

AI’s ability to analyze vast data sets and make informed decisions means that only the most relevant and well-presented options will be considered. If a hotel's offerings aren’t optimized for AI consumption, they might be overlooked, regardless of their actual quality or suitability.

How to Get Discovered

While the definitive way to be found by the AI Agent might be elusive, there is some relevant guidance for discoverability in Google’s new Search Generative Experience (SGE).

In some ways if a hotel creates content so it can be found by SGE, in theory, it’s on its way to being discovered by AI agents. In both traditional search engine optimization (SEO) and SGE, a site's discoverability is essential. Effective internal linking and a detailed XML sitemap ensure that AI agents –and consequently, AI users – can effortlessly navigate and find content.

Crawlability is just as critical; if an AI agent can’t access a page due to configuration issues or blocked resources, the page remains hidden from generative search. These algorithms need full access to content to deliver accurate and contextually relevant responses.

Indexability is crucial. Without it, even the finest content remains unseen in search queries. Ensuring that robots.txt files and meta tags are properly set up prevents the accidental exclusion of search bots. Performance indicators like time to interactive (TTI) and first contentful paint (FCP) are vital, as AI uses them to evaluate site responsiveness, influencing content prioritization in search results.

The importance of structured data has grown exponentially. Implementing Schema markup helps AI grasp content context and classification, enhancing its response capabilities.

Furthermore, user engagement metrics such as bounce rates and click-through rates give feedback that tells generative algorithms about the content's relevance and effectiveness, thus impacting its presentation in search results.

Adapting content strategy for SGE involves a focus on quality and relevance. Content must be authoritative, directly addressing user queries and covering them thoroughly. Incorporating readability, multimedia elements, and regular updates aligns with SGE's goal to provide the most pertinent and engaging content. Additionally, offering unique insights and diverse content formats can significantly enhance a site's visibility and engagement in a generative search environment.

It’s Time to Embrace AI

In practical terms, hotels must explore how to become the preferred choice for AI agents. By doing so, they can refine their offerings to better meet the expected criteria. In this context, it’s imperative for hotels and similar businesses to not only enhance their content but also to publish it frequently. Regular updates signal to both AI systems and potential customers that a business is active, engaged, and responsive to the latest trends and customer needs.

This strategy is crucial for maintaining visibility and relevance in a digital landscape dominated by AI-driven decision-making. To be perceived as a leader in the hospitality industry, a business must demonstrate its commitment to innovation and its adaptability to the evolving demands of AI-enhanced marketing strategies. The trajectory of marketing is unmistakably steering toward a future where AI agents play pivotal roles. The evolution from basic personalization to sophisticated AI-driven

interactions highlights the need for businesses to adapt swiftly to these emerging technologies. As AI agents become more integrated into everyday interactions, they’ll dictate how consumers discover and interact with content, making it imperative for businesses to optimize their digital presence accordingly.

While these transformations may not materialize immediately, the pace of technological advancement suggests that the future is closer than it might appear. Businesses, especially those in the hospitality industry, must start preparing now to stay ahead. This preparation involves not just adopting new technologies but also
rethinking strategies to meet the demands of both AI intermediaries and human consumers.

Therefore, the call to action is clear: begin the transition now. Proactively refining marketing strategies and technological infrastructures to align with AI-driven paradigms will position businesses not just to compete but to lead in this new era. By acting today, companies can ensure they remain relevant and influential in a marketplace increasingly dominated by AI.

MICHAEL GOLDRICH is the founder and chief advisor with Vivander Advisors, LLC. He can be reached at Michael.goldrich@vivander.com.

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