Mastering Personalization in an AI-Driven World: Tactics for Product and Technology Innovators

There’s no question that in the world of product development and innovation, personalization stands out as a transformative strategy that significantly enhances the user experience. By tailoring products, services, and interactions to individual preferences and behaviors, companies can foster a more engaging and satisfying relationship with their customers. It’s not just about recognizing names, it's about creating unique, tailored experiences that make each customer feel like the star of their own show. Let’s dive into the facets of personalization with a fresh perspective by incorporating AI-driven examples. 

Personalization is the second Design Strategy in a series where I share essential tips for creating tech products people love.

Recap: The Nuance between Customization and Personalization

In the previous article I covered the difference between customization and personalization, and it’s crucial to first recall the fine line between these two. Both the Customize and Personalize Design Strategies aim to tailor products and experiences, but their approaches differ significantly. 

Customization is a user-led symphony, while personalization is more like a serenade by your AI. 

In this week’s article, our focus is personalization. Consider the following tactics as your map to bring this value to your users:

Personalize Recommendations

Netflix has mastered the AI wizardry of conjuring up suggestions so spot-on, they might know your taste better than you do. It's like having a personal film curator who remembers every movie you've ever loved and even those you didn't know you wanted. This AI doesn't just look at your past viewings, it dives deep into themes, genres, even the moods of movies you've binged, serving you filmography gems you may not have picked otherwise.

The AI goes even further than just recommending movies, however, it also personalizes which screen captures you see for each film or show based on which one you’re more likely to select. For example, in the screen capture of various thumbnails for the show, Stranger Things, some of the options presented are ominous, while others focus more on faces of the actors.

Netflix leverages AI to tailor thumbnail images to suit individual tastes.

This is in part possible because of the scale of information available to AI systems, enabling this level of personalization for not only segments of customers, but each individual customer. As Joris Evers, Netflix’s then-chief of communications, underscores (Carr, 2013):

 “there are 33 million different versions of Netflix.”

This kind of magic isn’t just for show, it has real impact too! Companies that can attain this level of personalization are more likely to retain customers and have higher levels of customer satisfaction.

Personalize Search Results

Search engines like Google have become adept at personalizing results to the user's context, preferences, and past behaviors. Beyond just geographic relevance, these AI-enhanced engines consider your interaction history, device usage patterns, and even the time of day to present you with results that are most likely to align with your needs and interests.

It's also worth noting that personalization can sometimes lead to what's known as a "filter bubble," where the search engine continuously refines what it shows you based on your past behavior, potentially limiting the diversity of content you see. 

AI, particularly through the use of Large Language Models, holds vast potential for customizing educational experiences. Khanmigo emerged from a collaboration between OpenAI and the educational nonprofit Khan Academy, offering an AI-driven teaching assistant crafted to mimic the thought processes and responses of a teacher. When students enter their questions in everyday language, Khanmigo precedes their questions with a directive to GPT-4, ensuring the AI encourages exploration rather than simply providing answers, by prompting further inquiry. This approach ensures a highly personalized learning experience, tailored to maximize individual educational outcomes.

Dos and Don'ts of Personalization

⚡Harness AI Ethically: AI's power to personalize can deeply connect with users, fostering trust in recommendations. Yet, it's vital to tread carefully between guiding and manipulating.

🪟Explain Your Recommendations: Providing context for personalized suggestions can enhance trust and transparency. Just like suggesting a book because you loved a similar genre, let users know why they're seeing this.

🔑Transparency is Key: Be open about the data you collect and how it's used to personalize experiences. Users are more likely to trust and engage with platforms that respect their privacy and offer control over their data.

🔕Avoid Being Overbearing: Ease up on notifications and alerts. No one likes a friend who calls too often, right?

In sum, personalization is a potent Design Strategy, offering a pathway to create more meaningful, relevant, and delightful user experiences. 

By leveraging AI and machine learning, innovators can craft interactions that not only meet but anticipate user needs, setting the stage for deeper engagement and loyalty. As we continue to explore the possibilities of personalization, the potential to redefine the relationship between users and products is boundless, promising a future where technology feels like a natural extension of the user's preferences and lifestyle.

This article is is part of a series of 24 articles sharing practical, actionable tips on how to design tech products that people don't just use, but love. The articles build on the world’s leading design methods for designing successful tech products, as described in the book “Design Things that Make Sense”. Visit www.designthingsthatmakesense.com to learn more or download the free toolkit.