Artificial Intelligence in Modern Marketing
- Blog |
- 21 June, 2018
Artificial Intelligence (AI or machine intelligence) is the ability of a machine to display the typical functions we associate with the human mind such as learning and problem-solving. The application of AI is making rapid headway in the business world and the marketing function is poised to be at the forefront of the AI revolution.
Here we outline four high potential applications of AI which every marketer should be considering in order to improve their company's marketing effectiveness.
1. Customer segmentation and targeting
Customer segmentation and targeting form an integral part of marketing strategy and AI is changing the way it is done. AI algorithms can be trained to sift through reams of data and discover hidden patterns based on demographics, past buying behaviour, and other variables, to form new segments of customers with relevant attributes in common.
Once the segmenting is done, AI can help you better target these different segments by engaging your customers on the right channel with the right offer at the right time. Ad targeting and dynamic emails are two of the more common applications of AI in this regard.
For example, AI-driven ad targeting can track a customer's online behaviour on social media and the web and then deliver an appropriate message at the most opportune time to influence their behaviour. Similarly, AI-based dynamic emails allow you to send customised offers according to the particular segment a customer falls into.
2. Lead management
Effective lead management is critical for every sales & marketing organisation, ensuring that you dedicate the right resources to the right leads.
AI solutions can help you identify the right opportunities by first weighing the unique attributes, preconditions, and traits of each lead in your database, to tell you which lead is likely to deliver the greatest value to your business. Moreover, AI can also identify which leads will be specifically good for inbound and outbound marketing strategies.
For example, AI can identify which of your leads will most likely convert to customers by analysing the way they interact with your digital marketing communications like email.
3. Content generation and curation
The third area of marketing where AI is increasingly being used is content generation and curation. AI enabled content writing programmes like Wordsmith pick up elements from a provided dataset and structure a human-sounding article around it. Media companies like Yahoo and Associated Press are already using this AI feature to transform data into insightful narratives.
As well as generating content, AI also enables more effective customer engagement by curating content according to a customer's interests. Companies like Netflix and Amazon use AI to curate content and make recommendations by analysing past behaviour, ensuring their customers keep coming back for more.
4. Customer service
The fourth area of potential application for AI is customer service. Here, AI's ability to interpret and respond through both text and voice is helping companies serve customers more quickly and at a lower cost.
For example, chatbots on websites and messaging apps are being widely used to provide information, answer customer questions, and conduct transactions. Furthermore, companies like H&M are using personal assistant chatbots to recommend the right product on their web store according to a customer's unique requirements.
AI's ability to understand the human voice could have even greater potential for customer service. The global hotel chain Marriott has recently introduced the Amazon Alexa virtual assistant in its rooms. This allows guests to order room service or get concierge advice through voice commands, rather than having to call the front desk.
As AI becomes even more intelligent, its effectiveness in increasing customer conversions, improving satisfaction and facilitating real-time decision making will continue to improve. Marketers should be exploring opportunities to apply AI today, as your customers' expectations are likely to move just as quickly as this revolutionary technology.