AI marketing uses artificial intelligence (AI) technologies to automate decisions based on data collection, data analysis and other audience or economic trends that may influence marketing efforts.
According to a recent survey by research firm Ascend2, 42% of marketers stated that they already trust AI to personalise content and offers in real time, while 30% of marketers fear they are missing out on AI’s capabilities around predicting behaviour and adjusting campaigns.
Here are a few of the ways in which AI will continue to shape marketing strategies in 2022 and beyond.
AI can predict campaign success
Over time, marketers have used data to better understand and improve campaign effectiveness, and the technologies used for this analysis have become increasingly sophisticated.
The use of data to predict future business performance is known as predictive analytics and the it’s a market that’s anticipated to grow by almost 200%, from $7.2 billion in 2020 to $21.5 billion in 2025.
Marketers use predictive analytics to examine past and current campaigns to predict what is likely to happen in the future. This allows them to determine which marketing decisions will provide the best potential results.
Predictive analytics can inform the answers to critical strategic questions, such as:
- What content performs the best at different stages of the customer journey?
- Which audience segments are most likely to convert into paying customers?
- Which digital marketing campaigns have been the most effective at improving sales?
- Which target demographics result in the most profitable customer lifetime value?
AI can achieve better open rates for email marketing
Data and customer behaviour are used in AI-powered email marketing to create campaigns, enhance subject lines, and text quality, and adapt communications for specific readers.
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At this point, the technology has advanced enough that it is assisting marketers in finding, understanding, and targeting data-specific prospects with precision. AI can collect important data about consumers or subscribers, such as their demographics, purchasing patterns and interests, and allow marketers to use what they learn to develop compelling messages to promote their products or services.
AI in email marketing can also enable multivariate and A/B testing, as well as MST (mailing list segmentation), to optimise the effectiveness of send timings and open rates.
AI helps companies improve their customer service
AI is revolutionising the customer support landscape. Up until March 2020, AI chatbots had generally been used for limited purposes, such as customer service or marketing. Since then, they’ve truly taken off.
Companies commonly use AI customer service chatbots to better serve their customers’ needs at more touch points on their journey, from automated communications to visual search. User-friendly chatbots, for example, Amazon Alexa and Google Home, use existing resources, such as FAQs or knowledge base articles. They identify and respond to a variety of variants of the same question and may be trained to deliver immediate answers using a brand-aligned voice and tone.
A chatbot can automatically answer basic client queries like, “how do I add more users to my software?” or “how much does this cost?” via a company messaging system 24/7 without any human intervention, but evolving technologies are also empowering chatbots to guide shoppers to desirable products or services, qualify leads and respond to enquiries with emotional intelligence.
AI can support content creation
AI content generation is the practice of having complex programs create content with machine learning, natural language generation (NLG), and natural language processing (NLP) tools. It may be used to produce text-based material such as blog posts, ad copy, social media postings, marketing copy and more.
Technologies like GPT3 has enabled AI to get to this point where it’s ready for commercialisation, despite being commercially available since the early 2000s.
The most significant benefit of utilising an AI content tool is that it allows marketers to generate and publish more material in less time. This might be a fantastic strategy for marketers to produce more content without having to spend hours researching and writing blog articles.
AI can help upsell and cross-sell
AI-based recommendation engines, according to a recent study from the research firm Orbis Research, are “data-filtering tools that make use of various algorithms and data to suggest the most appropriate products to a given client.”
They analyse data from prior client behaviour, such as search terms, clicks, and purchases, to figure out what will appeal most to that specific consumer in the future. Product recommendations generated by AI assist customers in finding merchandise quickly and simply. They also allow businesses to promote items that other people love, allowing them to reach new consumers.
Every time one of Amazon’s 150 million Prime members visits Amazon.com, they see features like “inspired by your shopping trends” and “based on things you viewed,” as well as carousels of additional items to browse and, ideally, buy.
AI in marketing is already influencing some of the most significant improvements in overall customer experience from insights to personalised product recommendations and technology-enabled help.
What examples of AI in marketing do you think will have the biggest impact in the years ahead?
By Leigh San Mo, Head of SEO, Indago Digital
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Great article. Really enjoyed this.