Marketing is perhaps one of the industries that have undergone the most significant changes. In the past, people carried out marketing tasks manually; but now they can be performed efficiently using AI-powered software and technologies.
Some view this technology as a positive development because it speeds up the completion of tasks, while others believe that it is affecting their livelihood as employers prefer to use AI software instead of hiring talent.
Regardless of opinions, the use of AI in marketing is here to stay. AI is already being used in various industries, from the food and beverage sector with robot servers to the creative field with AI-generated content.
Incorporating AI with marketing can actually automate tasks like analytics and segmentations more effectively and efficiently. This frees up time for marketers, which allows them to focus more on the strategic aspects of their role. This incorporation will also provide up-to-date information on trends and customer behaviour, giving marketers a competitive advantage! On top of that, AI-powered software could also create insightful customer profiles to generate highly personalised and meaningful messages, helping marketers to target the right audiences at the right time, with the right message.
Besides that, AI-driven marketing technology is also transforming how marketers reach customers. AI algorithms can analyse a variety of data points and use the insights gathered to create highly targeted campaigns. AI-based tools can optimise campaigns in real time by adjusting messages based on performance metrics, which helps the campaign deliver more effective messages to the right customers.
Here are the top 5 examples of how AI can be used in marketing:
1. Personalised Recommendations
AI-powered recommendation engines can analyse customer behaviour to suggest personalised product recommendations, increasing the likelihood of a purchase. For example, Amazon’s recommendation engine uses machine learning algorithms to analyse customer purchase history, clickstream data, and other factors to suggest products that a customer is likely to purchase. This can ultimately improve the customer experience, increase engagement, and drive sales.
2. Chatbots
AI-powered chatbots can provide customer support, answer product-related questions, and even facilitate purchases, improving the overall customer experience. For instance, Sephora’s chatbot that uses AI does not only provide personalised product recommendations, it also provides tips and tutorials for their customers.
3. Ad Targeting
AI-powered ad targeting uses machine learning algorithms to analyse consumer data and serve ads to the most relevant audience. This is commonly used in Facebook, as it helps them to analyse user data such as demographics, interests, and behaviour, and serves ads to users who are most likely to engage with them. Ad targeting can improve the effectiveness of advertising campaigns, reduce costs, and increase ROI.
4. Predictive Analytics
With AI-powered predictive analytics, marketers can anticipate customer needs and preferences, and create targeted marketing campaigns. Predictive analytics can help marketers to know which customers are most likely to make a purchase, which products are likely to sell best, and which marketing campaigns are likely to generate a positive response.
5. Price Optimisation
AI-powered pricing algorithms can analyse market trends, consumer behaviour, and competitor pricing to optimise pricing strategy and maximise revenue. For example, Alibaba, the Chinese e-commerce giant, uses AI-powered pricing algorithms called the “Dynamic Pricing” system. It analyses enough data to adjust prices depending on various factors, such as the time of day, day of the week, and customer demand.
However, AI-based platforms are only as useful as the data fed into them. Without the right data, AI-driven technologies cannot produce the insights and predictions that marketers need to optimise their campaigns. It is also crucial for Marketers to have the skills and expertise to use AI-based applications so they could make the most out of AI-powered technologies.
To maximise the benefits of AI in marketing, it is important to have accurate and accessible data. Without the right data, AI-driven technology will be unable to generate the insights and predictions that marketers need. On top of that, investing in personnel with the necessary skills and expertise is also vital, because only by understanding how AI is changing the marketing landscape, you can stay ahead of the competition.
