Founder & CEO at SmartClick.
Evolution Of Marketing
Technology has transformed the way brands communicate and engage with potential customers. About 100 years ago, people relied on paper flyers, newspaper ads, billboards, direct mail and in-person interactions as a form of marketing to promote their business. In today’s digital-first landscape, marketing has become more reliant on the internet, social media and online advertising.
Marketing has evolved over the past decades, and we’re now in an era of digital revolution where marketing is completely dependent on consumers who dictate what content they want to receive. The growth of AI technology has opened up even more opportunities for marketing professionals who can benefit from AI automation. AI-powered marketing saves businesses a lot of time and resources spent on gathering and analyzing data and helps fully optimize the performance of marketing campaigns, which would otherwise be impossible in the case of traditional marketing campaigns.
Here I will go over some great ways artificial intelligence can benefit your marketing.
Marketers have long used data to understand consumer behavior and trends, predict future needs and optimize their campaigns accordingly. Data-driven marketing planning has become even more advanced with the advent of AI technology. Using historical data models and statistics with a combination of AI solutions, predictive analytics delivers advanced insights to understand campaign effectiveness, predict future behaviors and make better marketing decisions.
Predictive analytics may be used to:
• Forecast customer behavior. Predicting customer behavior and preferences enables marketers to make their offers more relevant. By analyzing customer age, gender, location, language, previous buying history and other data, predictive models segment target groups, forecast different patterns of customer behavior and highlight the products that will most likely match each group’s needs.
• Target the right products. AI-based predictive analytics is a valuable tool to target prospective customers with the right products. All the customer information obtained from predictive models helps businesses make more effective data-based decisions about which services are best to bring to the market.
Delivering personalized customer experiences is challenging for businesses in today’s competitive marketplace. Nowadays, consumers value personalized experiences, and as Epsilon and GBH Insights found, 80% of consumers would be more likely to buy from a brand if it offered a tailored experience. To stay ahead of the competition, many businesses start investing in personalization.
Personalization can be a time- and effort-consuming activity because, with too much data, it would be difficult for humans to make accurate recommendations without analyzing complete databases. That’s exactly where AI-based product recommendation systems come into play. AI algorithms analyze user preferences for product features; find all the items users have previously liked, shown interest in or purchased; and come up with more relevant product recommendations.
Chatbots are one of the most exciting examples of AI in marketing. Brands across various industries apply chatbots to automate a big part of communications with their customers. With the ability to engage in real-time conversations with customers and address their requests quickly and effectively, the chatbot market has seen remarkable growth in the past years and is predicted to reach around $1.25 billion by 2025.
AI can be a useful resource for content creation. AI-based content generators use natural language generation software to take the structured data and convert it into texts that you can sometimes hardly distinguish from a human writer. GPT-3 by OpenAI is perhaps the most powerful language generator so far, coming with 175 billion parameters and trained on 45 TB of data. GPT-3 is a great tool to assist humans in producing texts; however, it lacks true common sense and can be tricked into saying biased and incorrect things or making basic mistakes that an average human would never make.
Analyzing consumers’ emotions is essential for measuring marketing campaigns. Sentiment analysis uses ML and natural language processing to identify people’s feelings and emotions expressed in words about a product, service or brand. It can be an effective tool for marketers to track social media discussions, emails, online reviews and survey responses to get a better understanding of how the public feels about their brand.
Predictive Lead Scoring
Predictive lead scoring is another application of AI-based marketing that helps identify potential customers among the leads. As statistics go, companies that apply lead-scoring algorithms have seen about a 20% improvement in conversion rates. Predictive scoring uses historical and current data, AI and ML to generate a model that predicts future outcomes based on past behavior and comes up with a customer profile that is most likely to convert.
AI in marketing has been around for the last few decades; still, it has incredible potential to optimize marketing processes and contribute to the rapid growth of this industry. With so many applications ranging from programmatic media buying and dynamic pricing to propensity modeling, ad targeting and churn prediction, AI enables marketers to identify user behavior more accurately and streamline marketing workflows for better outcomes.
If you are looking to get started with AI in your marketing, it’s a good idea to consider these key steps before implementing AI. First, define your expectation for each area of your business that can benefit from AI. After setting goals, analyze how AI solutions work for you and what data you need to provide for these AI solutions. Next, choose use cases relevant to your business and analyze the benefit of automating them with AI. Identify both the possible bottlenecks and the opportunities AI can bring along the way, and then decide if your business is really ready for AI.
Whether you are going to embrace AI today or wait on it, in the long run, marketing automation is an essential tool for businesses, empowering them to increase effectiveness, reduce running costs and boost sales. While technology and automation are vital for optimizing marketing processes, let’s make it clear that human imagination and hard work are still the most important factors in driving engagement with clients, creating automation rules and successfully implementing the marketing automation processes.