Amazon Personalize is one of the many Amazon Web Services (AWS). Data analysis and machine learning allow businesses to offer personalized user recommendations and experiences.
Since companies began to put faith in cloud services, service personalization has ceased to be a complex, expensive process, as it no longer requires significant initial investments in physical servers with sufficient computing capacity to analyze enormous amounts of data.
Thanks to the massive power and versatility of the cloud, companies of all sizes can devise personalization strategies by paying only for their computing capacity, avoiding waste or, in many cases, opening the possibility of growing rapidly without worrying about their servers falling short.
In this article, we will learn more about how it works and what benefits strengthening the value offering through tools like Amazon Personalize can bring to the organization. We will also explore.
What are the benefits of Amazon Personalize?
Amazon Personalize allows us to obtain measurable results that reflect a real and positive impact on users’ lives. Below, we will try to summarize some of these advantages:
Improves engagement: When users receive recommendations, search results, and notifications they perceive as relevant, the impact goes far beyond getting their attention for a few seconds. If we have a system robust enough to arrive at the right time and with the right offer, we can begin to notice measurable changes in all engagement metrics.
Drives sales and conversions: Personalization also offers meaningful opportunities in terms of cross-selling and up-selling. Recommending products that relate to the interests of our users or expanding the possibilities of a product through customization can improve sales but can also be applied to any other conversion metric.
Boosts customer retention and loyalty: We love returning to places where they know us and know what we need. For this same reason, users who receive personalized experiences establish a stronger relationship with brands, which we can measure through the retention rate and in which Amazon Personalize can have a very positive impact.
A fascinating aspect of Amazon Personalize is that it can deliver positive results to companies collecting data from their users for a long time and to organizations just beginning to build and strengthen their databases. To learn more about this point, we recommend our e-book “A Journey to the Cloud: Boost Your Business Growth with AWS,” in which we explain many of the uses of Amazon Personalize and other AWS tools in detail.
Amazon Personalize in action: some examples and applications.
Entertainment giants, learning platforms, and many other industries use recommendation engines built on data analytics and Amazon Personalize. Below, we will focus mainly on some uses of Amazon Personalize in retail and banking.
Personalization in the Retail and CPG industry:
E-commerce: A 600 % increase in click rates and a 26 % increase in the average amount of orders was the result that Cencosud obtained thanks to the implementation of Amazon Personalize to optimize the purchasing process.
This multinational in the world of retail is not the only one that has improved the experience of its users through personalization. More and more brands are taking their e-commerce experiences to the next level with Amazon Personalize, from clothing brands to home delivery market services.
Offering the right financial services at the right time and considering each user’s spending habits, lifestyles, and goals is the holy grail of financial services. Thanks to Amazon Personalize, many companies are achieving it.
An example is Mint, an application developed by the American company Intuit that has specialized in software for financial services for years. Mint collects bank account, credit card, and bill information to allow users to track their spending and investments, receive reminders, and enjoy payment services.
Thanks to Amazon Personalize, today, Mint has a recommendation engine that considers each user’s behavior and profile to offer different financial services that improve the app’s value offering.
Marketplaces created by financial institutions are also a unique opportunity to take advantage of the power of Amazon Personalize. To learn more about this trend, we invite you to read our article Marketplace for Banks: How Do They Work and Why Do We Need Them?
If you want to work with a partner who helps you use personalization to create a meaningful connection with your users and, in the process, achieve your business objectives, do not hesitate to get in touch.