AI (Artificial Intelligence) is the intelligence of machines that can do analytic, coherent, logical, and reasonable functions which are correlated with the human mind. When AI can do such things then why not marketing which can imitate human intelligence and can be used to save a lot of time and money in the end. Studies have shown that AI has increased the productivity of marketing by 40%.
What is AI Marketing?
AI marketing is a method of influencing AI(Artificial Intelligence) to collect data, predict customers’ next moves, customer intuition, making machine-driven decisions that affect marketing effort and can increase the ROI(Return of Investment) of marketing. This evolution has made the vision clearer for marketers about their target audience.
Why AI Marketing is important?
76% of customers anticipate that companies should understand their longings and demands. With the help of AI marketing, magnificent data analysis could be conducted via social media, emails, and web activities in no time. This is the reason for the importance of AI Marketing.
How does AI help Marketing?
AI can give a better image to marketing. AI can help in marketing
Automation: One of the important things in marketing is to turn data accurately into reliable information as quickly as possible. Speed is one of the key features of AI Marketing which helps marketers in scaling their campaigns, determining or predicting the customer’s action, and deciding with which campaign customer should be approached. AI also tracks customers’ web activity so that they can predict the customer’s needs.
Errors: Humans might make mistakes but the probabilities of AI committing mistakes are nil. AI can greatly help in marketing regarding human errors.
Security: Security problems have made many businesses worry. The most common is the risk of cyber attacks in an eCommerce business. AI has proved to be a solution by addressing these problems by learning, adapting, and reacting to the security needs of the company.
Saving the Cost: AI works more quickly and more efficiently than the employees which leads the company to invest less in creating and employing a marketing strategy. AI can even be used in carrying repetitive and boring works without a lot of expenditure. It takes less time and also does the work without errors. With the help of AI, the staff could be engaged in doing something better and creative.
Increasing ROI: AI has proved to be more useful in analyzing and understanding the customer’s requirements through social media, emails, and web activities that can increase ROI without wasting much resources and efforts that can turn out to be in vain. And ultimately it keeps the customer happy.
Personalization: AI helps to give a personalized experience to customers. Many companies are already using AI to personalize their websites, emails, videos, social media posts, and other content to address their customers. Product recommendations and mobile-friendly notifications have given more personalized markets than ever.
Better Decision Making: AI conducts data much faster than humans, alongside it also guarantees accuracy and security, enables the staff to work strategically to make AI-powered campaigns more effective. AI collects data and tracks real-time tactical data which helps marketers to make decisions right at the moment without actually waiting to end the campaigns. They can also plan what they can do next based on the data-driven reports so that the decisions would be smarter and more objective.
How to use AI in Marketing?
Sales forecasting: AI clarifies what to do next, which is a must in marketing. With the help of AI, marketers predict their customer’s choice and their purchases which can help companies to avoid overselling or selling out of stock. This would help in earning more scales.
Customer Insights: AI helps in achieving external market knowledge by analyzing the vast amount of online content on social media platforms. Marketers can easily create customer personalities based on data collected from AI algorithms. With AI, customer segmentation can be done more easily and marketers can identify customers who should be targeted and could be included or excluded from the campaign. Through this study, customers are approached with products that they’re likely to buy and prevent promoting irrelevant or out-of-stock products to customers.
Personalized customer’s experience: Brands use AI to improve their customer’s experience by offering them customized content and offers and first-class support to every single customer. AI analyzes the products that customers have purchased in the past and recommends those products that fit their needs. The outcome of this personalization using AI, helped companies by more sales, engagement, and retaining the customers.
Content Creation: Content creation is a thing for the human mind and content creation is impossible for AI till now, but AI can be used as a tool to maximize the efficiency of the content team by automating specific tasks such as emails, personalized messages, or social media content.
PPC Advertising: AI is also used in PPC (pay-per-click advertising) advertising. PPC is an online advertising model in which advertisers pay each time a user clicks on their advertisement.
Chatbots: A chatbot is a service, powered by AI with which companies can interact with their customers with a chat interface. Not only answering repetitive questions from customers, but it is also used to answer questions related to price, size, or quantity.
Dynamic Pricing: AI is also used in personalized pricing. Dynamic pricing is a pricing strategy in which a product’s price fluctuates by demand and supply. The prices of the product increase when demand rises and customers can’t find a discount when there is a need to purchase a product online. An application’s or website’s bot monitors customer’s predictive analytics through cookies, history, searches, and other activities, to provide it with real-time pricing. This means that the customer gets fewer discounts and higher prices for the product it needs at the moment.
Data Quality and Privacy: AI can improve the data quality and privacy of an organization. Companies have a huge amount of data for disposal. Therefore, it’s important to have quality data in a place that is suitable for AI to perform its job. AI provides you with better data accession and prevents sources of information from being attacked by cyber attacks.
Examples of AI Marketing
Dell’s automated email newsletters: It is difficult to collect emails and send out newsletters, writing out newsletters, and calls to action can be tiring as well. Dell also faced the problem as it has many customers. They needed a way to send personalized messages to their customers. Dell’s partnering company took Dell’s original email promotions and changed them accordingly. With the help of AI, Dell’s marketing plan saved time, energy, and made the life of everyone in the agency easier.
SKY’s customer segmentation: IT company SKY, faced the problem of managing 22.5 million customers. Sky utilized personalization and analytic tools to understand the segments and deliver customized messages to their customers. They also learned machine learning to understand how customers were interacting with different products and services. This information then they used to provide the best possible service to their customers.
Google’s RankBrain algorithm: Along with autosuggestions, Google knows what we’re searching for before we do it, their algorithm update RankBrain is the best example of AI marketing. This is because these matrices tell about how humans interact with a website. When a high number of users bounce and are not staying for long probably means that content is irrelevant to them or the quality needs improvement. As businesses publish more content and users interact with it, Google uses this data and offers better search results to everyone.
AI Marketing is now more accessible and making it a valuable tool for businesses. There is no doubt that AI is largely influencing the choices of customers, and providing relevant recommendations and timely customer service. Looking at the ways that how one can make use of AI to enable the growth of the company and meet the expectations of their customers. AI Marketing is the only way for companies to keep up with the ever-growing customer demand and expectations. AI marketing is the new future of marketing. There’s no limit on how far it would bring human experiences closer to technology and its many advances.