by Pete Lauria
There was a time, not long ago, when Personalization was a hot buzzword. It’s still important, but not just a buzzword anymore. Now, it’s a business advantage.
Maybe it’s impatience, maybe it’s changing cultural norms, but we’ve reached the point where customers expect companies to know who they are, what they like, and what they need, without having to explain it over and over again. That’s where AI comes in. And when it’s done right, it leads to stronger loyalty and more repeat business.
Customers Don’t Want More Choices – They Want Better Ones
Think about how overwhelming the customer journey can be. Too many options. Too much noise. Too much of “the same”. When businesses personalize the experience, they remove friction and build trust.
AI tools now help companies tailor product recommendations, content, and even support responses based on past behavior and preferences. It’s not a new concept, some online retailers have been doing this type of thing for years (“if you want to buy that, maybe you’ll like this too”). Often, those recommendations were based on aggregate customer behavior, or simply products that go well together. Buy a pair of workout pants, here are sneakers that pair well with them. AI adds a whole new level of intelligence to that type of approach, and tailors the recommendations and content to YOU based on an analysis of YOUR preferences and behaviors. It’s not creepy when it’s helpful, and when it saves customers time, they appreciate it.
McKinsey found that companies using advanced personalization grow revenue 10-15% faster than their competitors. That’s not a marketing boost, it’s real bottom-line growth driven by relevance.
What Personalization Actually Looks Like
Let’s say a customer has purchased from your online store twice. With a good AI setup, your site might now show them a different homepage, offer a reorder reminder at just the right time, or proactively offer a support tip based on their last purchase. As a personal example, I purchase water filters for my refrigerator every 3 months. I now get email reminders at just the right time based on my personal pattern.
When customers see that type of personalized service it feels like the business “gets” them. And that feeling creates loyalty.
Even service-based SMBs can do this. For example, a boutique travel agency that uses an AI-powered CRM to track client preferences, like favorite destinations, dietary restrictions, or airline seating. The next time that client books, the agent doesn’t have to ask, it’s already built into the experience and options that align to those preferences can be recommended. That kind of attention makes people come back.
AI Enables It, But Strategy Makes It Work
Just adding AI tools doesn’t equal great personalization. Businesses still need to:
- Define what’s actually helpful for their customer.
- Set clear rules about how and when to personalize.
- Balance automation with real human interaction.
This is where SMBs can stand out. You may not have the scale of a big brand, but you have the flexibility to make your AI feel less robotic and more relational.
A Quick Win: Smarter Email
One of the easiest places to apply AI personalization is in email. Platforms like Mailchimp, ActiveCampaign, or Klaviyo now let you trigger smart sequences based on browsing behavior, purchase history, or even sentiment. You’re not just blasting the same message to everyone, you’re meeting people where they are.
And customers notice. Open rates go up. Clicks go up. Sales go up.
Final Thought
The goal of AI-driven personalization is not so much to be flashy as much as it is to be thoughtful. When your customers feel seen and understood, they’re far more likely to stick around and tell others.
If you want more repeat business, don’t just automate. Personalize.
Peter Lauria is Practice Lead, Customer and Buyer Journey, and a Partner at The Weiwood Group, a business strategy and operations consultancy dedicated to helping organizations simplify, scale, and succeed. He is also a corporate speaker helping businesses better understand the emotional connections that lead to amazing Customer Experiences.