Is AI Critical to Marketing Strategy Success?
As technology progresses, AI (Artificial Intelligence) is being utilized more and more in everyday life. AI is expected to grow approximately 54% each year, meaning that it will soon be all around us, providing valuable processes to various factors of our lives.
AI produces intelligent technological solutions to increase businesses’ efficiency, productivity, profit, and customer experience while reducing operational costs, time spent, and human error mistakes. As this technology continues to develop rapidly, the gap between those that decide to use this technology and those that do not will grow larger and larger.
What is AI Marketing?
AI technologies are being adopted in all sorts of businesses, and the marketing industry is no exception. Marketing businesses are using AI technologies to make automated decisions for them by using data collection, data analysis, and observing audience and economic trends. By using AI technology to complete these processes, businesses can see a more significant ROI, increase profits and save the time and resources they must spend on a project.
AI Marketing Solutions:
Machine learning is often used in AI marketing to automatically analyze information from previous marketing campaigns and assess what worked well and what did not. Machine learning allows for data to easily be collected through your stored previous campaigns to improve the performance of your future campaigns then. As AI technology discovers what has and hasn’t worked in the past, it can make the necessary changes to achieve better results, such as improved SEO, forecast targeting, recommendation systems, and much more.
AI technologies allow for much more in-depth consumer data and information to be stored and utilized to construct user-specific marketing content. This means that companies can micro-segregate users into much narrower and more niche groups based on several factors such as their age, gender, interests, purchasing history, and much more. Big companies such as Netflix, Amazon, YouTube, and Facebook use granular personalization to give their users an experience best suited to them, leading to increased enjoyment of the user using the service.
By using AI to gain in-depth data on users’users’ interests and behaviors, these companies can give their users exactly what they want, in the way that they want it. ”When you hear your name being called out in a noisy crowd, your ears perk up, and your brain registers it. If you can effectively communicate directly with your specific audience in a way that speaks to them, you will see a much more significant improvement in your campaign results. As other companies adapt and utilize these technologies, you want to stay caught up with your competitors.
Predictive Marketing Analytics:
Marketing teams are using AI technology to gather and store information on users’ searching and purchasing behaviors. This data, combined with machine learning algorithms and datasets, allows companies to present users with other products they may like based on what they have searched for or purchased.
For example, Spotify can create new playlists and introduce new songs, albums and artists to users based on their listening history and what they have searched on the platform. This gives users a more incredible experience with the service, ultimately increasing the ROI. Similarly, Amazon uses this technology to offer customers products for them to purchase based on their recent purchases and search history.
Chatbots and AI Conversations:
Many companies are now using AI-generated conversation tools on their websites to provide their users with an automated response service that can give instant responses to basic questions users may have. This improves users’ experience as they get instant help with accurate answers based on previous questions and data. In addition, using an automated service for basic queries users may have will increase customer service agents’ response time for more complicated questions as they have fewer queries needing answering.
Another function of AI in marketing strategies is dynamic pricing. This is where the pricing of your products can be automatically adjusted to the optimal prices in real-time based on vast quantities of historical and competitive data. This data considers the number of sales, profit per sale, competitor price, competitor number of sales, and more to ensure your company sells its product at the best price to maximize profit.
Future of Marketing Campaigns:
As AI technology continues to develop, more companies will utilize several AI solutions in their marketing strategies. As more and more businesses use these solutions, the gap between companies that adapt to the new technology and those that don’t will grow bigger and bigger. Therefore, it would help if you learned to utilize these technologies early, as they are the future of marketing strategies. You must adapt to avoid being left behind by your competitors.
By Struan Thomson