Personalization in Gift-Giving: A New Wave of the Future in the Age of AI
In times where we have all this technology, consumers want to celebrate moments of connections with their loved ones, great experiences with people personalized gifting
In the era of consumers craving true experiences and relationships, personalized gifting has become ever more popular and artificial intelligence is helping propel this upward trend even further.
There is now AI-generated personalized tokens, also AI-suggested gifts, all helping to making the personalized gifting experience more sophisticated, advanced and developed. This gives customers more options too.
The Rise in Demand for Personalized Gifts
It is forecasted the personalized gifts market is estimated to increase in size by USD 10.76 billion. The compound annual growth forecast is estimated to be between 6.7% between 2024 – 2029. This can be seen here.
There is increased preference by consumers for personal, unique gifts. This is customized gifts that reflect their individuality.
Personalization software enables unique gifts to be tailored for the individual.
People want meaningful gifts, they want that emotional connection, they want something memorable.
Generic gifts do not have these characteristics.
We know from statistics that 81% of frequent shoppers want the personalized shopping experience. We can see this here. This could be a gifting experience with personalization options of a Name, or a Photo or a Custom Message.
Consumers want to be treated like a person also, not a number. This is backed up by the dated seen here.
How AI is Shaping the Personalized Gifting Experience
Smart gifting recommendations have now formed part of the personalized gifts industry.
Now AI-driven suggestions can help customers choose a gift that suits them, that they want etc. AI systems can assess age, hobbies, preferences of the consumer and then recommend relevant products.
By way of example say someone loves photography.
This person will then be shown Personalized Gifts of Photo Canvas Prints, Photo Mugs, Photo Books, Engraved Camera Straps perhaps.
The tech is so sophisticated – these AI systems can detect gifting for a spouse, friend, parent etc. Appropriate gifts for the gift recipient can then be suggested.
A romantic star map might be nice for a couple but personalized mug might suit a work colleague. We have seen the power of this firsthand and it helps the customer get abundantly clear on what they want.
The AI will review past purchase behaviour, browsing behaviour etc.
It will make occasion based suggestions also like for birthdays, weddings, fathers day, mothers day etc.
The AI in this process will also tap into consumer trends.
So the more popular personalized gifts can be visually presented to the consumer.
Real-Time Customization
This is fabulous for consumers.
This enables the consumer personalized products immediately and see the fully personalized gift before they buy.
So there is transparency. They see what they would be buying.
This is very important.
So a shopping can add a Name, a Photo, a Custom Message to the product they are interested in, pick any size, color etc. and Preview the final look on the screen.
This is an interactive experience and help consumer have confidence in their own decision also prior to purchase.
Predictive Personalization
AI can anticipate what a customer wants based on their past preferences.
This includes purchase history etc.
A study done by Mckinsey concluded that brands using predictive personalization analytics achieved an increase of 20% in customer satisfaction and also a boost in revenue. You can see this here.
Why Personalization is More Important than Ever
Personalization makes products and gifts personal.
It helps celebrate the bonds between people, creates emotional well being in the gift recipient, as they feel so appreciated and thought of by the gift recipient. A customer of ours who gave his Grandma a custom canvas print with a photo of him and his Grandpa when he was a child told us his grandma cherished the gift.
AI simply enhances the customers experience and brands ability to satisfy the customers wants. Large scale personalization is now possible for both small and large businesses.
Final Thoughts
Consumers want authenticity. They want gifts can have that emotional connection box ticked. Personalized gifts do just this, as they are personal gifts, made specifically for the gift recipient in mind.
AI is not going to replace the human factor or desire of the gift giver - it's just going to enhance the personalization process, options for consumers etc.
It will be A. Emotional Intelligence with B. Artificial intelligence that will drive the AI side of the advanced in the personalized gifts industry. You can't have one without the other in this industry.
At Cloncaia we believe any present should be as unique as one made just for them — because, with AI and human touch, it truly can.
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Written by Cloncaia, a personalized gifts store helping families celebrate meaningful moments and providing heartfelt gifts.
Cloncaia is an online store helping families or friends create heartfelt memories with personalized gifts. Every item is made-to-order and crafted with care.