According to a survey conducted by PwC, 72% of business leaders use AI for their business advantage. The Digital marketing world has been restructured immensely since the emergence of AI. It helps companies develop powerful digital strategies, optimizes campaigns, and improves return on investment.
Teleflora, a floral company in the US, used AI marketing to build new customers’ profiles and improve customer loyalty. Using these historical data, Teleflora used AI marketing to predict the future customer behavior of different audience segments.
This is how AI is restructuring the digital market in today’s time. It is a practice adopted by numerous brands to increase their sales and ROI. It is necessary to understand how this works.
Why is Artificial Intelligence Gaining Momentum in Recent Times?
Artificial Intelligence (AI) can think, read, and react almost like humans when trained with a large enough data set. While AI can perform all tasks technically, it is best known for robotics, speech, and image recognition.
Greater work efficiency
By providing general support through AI tools, you can increase employee satisfaction and increase productivity. Automation can be used to replace work that, unlike a lot, is considered unproductive.
For example, workers can dedicate more time to create tasks that require human intelligence and out-of-the-box problem-solving capabilities. Menial and redundant tasks like data entry, segregating leads from a marketing campaign, and responding to FAQs by customers can be easily handed over to chatbots and AI.
Human intervention can be reserved exclusively to handle complex customer interactions and find resolutions to problems that are not pre-programmed.
Deeper data are analyzed for insights by AI
Data insight refers to the understanding of specific business phenomena that can be achieved by analyzing data sets using machine learning and artificial intelligence (AI) technologies. For example, a machine learning model estimating the likelihood that a customer will churn can uncover factors driving churn rates and enable decision-makers to change business strategies and processes.
Help you understand and know your audience
By analyzing data, AI can easily predict the purchasing behavior and decision-making of target customers, improve user experience, and provide customers with what they really need.
Increase in ROI
AI allows you to automate many repetitive tasks. This can improve productivity. “More than half (51%) of decision making acknowledges that cost reduction is the first area AI is offering,” says Joe McKendrick of Forbes. At the same time, AI is helping businesses enhance profitability and reduce costs.
How do Digital Marketing and Artificial Intelligence Get Along?
Artificial Intelligence has been adopted by brands to communicate with their clients. It is an experiment to adopt conversational marketing in their day-to-day lives.
With the advances in machine learning, AI is unlocking the potential of hyper-personalization through personalized product recommendations, intelligent content recommendations, and customer support suggestions.
The marketing world is using some sophisticated marketing analytics technologies. These are used for building customer relationship management (CRM) applications which include data management and better customer handling. Most CRM platforms include the business of analyzing customer data and that helps SDRs improve the relationship with them. Here, AI becomes very useful as it is excellent at interpreting and comprehending inputs when trained on a large enough data set. Just the same way as Google Dialogflow, which provides you with an overview of what AI should look like and proves its efficacy.
The business fields are rapidly using these technologies to attain a better position in the market and grow their business in a more sophisticated manner.
With AI, advertisers and brands save a lump-sum amount of time and money.
- AI is used to learn more about customers preferences and choices
- It plays a significant role in enhancing customers’ choices and providing the audience with what they want.
- It helps you to build successful campaigns.
- It is used to help simplify routine activities.
- AI is helping companies in saving costs and growing sales tremendously.
- Empowers decision-making by producing better performing content.
- Helps in targeting the right customer that would allow you to get in touch with your target audience.
In the world of digital marketing, the use of AI has been prevalent and along with the greater use of chatbots. They have proved to be crucial to development.
But in the midst of it, let’s understand what chatbots mean and how they shape the marketing system.
Role of Chatbots in this Development
A chatbot is a software that uses AI to talk and chat and determine responses. You may have used chatbots on a website looking for answers to your questions. Chatbots can have audio or text conversations. The latter is usually displayed in a chat window on your computer’s screen.
Chatbots, also known as messenger bots, are known to be the best new marketing channels since 2017. Chatbots are out in the world for marketing your business. It is different from the same marketing channels you have used in the past, such as advertising and email.
However, chatbots are the most effective marketing tool, especially on your website and social media. It engages visitors already coming to your website through interactive conversations and provides relevant and satisfactory resolutions to customer queries. Chatbots can provide customer service that benefits both customers and brands and help with messaging targeting, collecting data about customers, and delivering targeted messages on behalf of users.
Chatbots can move customers into the sales funnel by asking more specific questions to help them find the product they want. Recently, National Australia Bank (NAB) launched a chatbot as a digital bunker for business customers, saving time spent on customer management tasks. The chatbot can answer customer questions 24/7. The software can use real customer answers to answer more than 200 questions and more than 13,000 variants.
Benefits of AI in the World of Marketing
1. Brings Clarity
According to a recent survey, 71% of marketing respondents say that brands do not understand consumer fundamentals. Therefore, 66% of marketers said they want brands to invest more to build customer awareness and relationships. Set up notifications and alerts and get clear, accurate answers when it matters, thanks to AI-powered voice guidance, technology, and IoT.
2. Puts Marketing on Autopilot
Some people often fear the uncertainty of AI replacing humans. Many others believe that AI works for humans and not ‘instead of’ humans.
It can simplify your marketing efforts by intelligently responding and taking feedback from your consumers. You no longer need to invest your time into menial tasks like responding to repetitive queries or FAQs to market yourself and your business because AI assistants like AmazonEcho can do it for you.
It’s not enough to just read a speech-to-speech activation message on the device. Over time, AI can function more autonomously. From purchase to flight booking, to giving you necessary recommendations and even financial management.
3. Voice Recognition and Enhanced Security
AI voice assistants like Siri use voice recognition to make lives easy for the users. Additionally, it provides added security by only getting activated upon listening to the voice of the owner.
Thanks to AI and ML algorithms, the device intelligently recognizes voice changes and modulations to a considerable degree so that it always responds to the device owner.
4. Natural Conversation
When voice assistant technology was still in its infancy, your device may have been able to recognize your voice and respond but not enable a smooth flow of conversation.
With breakthroughs in tech and NLP (Natural Language Processing), voice assistants like Google are able to maintain a feedback-response loop and even have short conversations with users.
Application Areas of Artificial Intelligence in Digital Marketing for Your Business
1. Product Recommendations
Product recommendation utilizes technology to create personalized content recommendations for users, such as people who buy X also buy Y.
It is prevalent across e-commerce platforms and is implemented to maximize the following:
- Time of page
- Interactions with the site
- Sales and revenue
Netflix’s referral system can offer movies and TV shows that you may like.
2. AI Chatbot
A chatbot is the biggest example of using AI technology. When you ponder about chatbots, Google Dialogflow, Amazon Lex, Azure Bot services can essentially manage to cross your mind, or it just did. These bots help translate your instructions to a more structured format for your apps and services to understand. Several AI Chatbots like WotNot can help you communicate better with customers with a simple and easy way to build bots using no-code. You can add useful chatbots to websites, emails, apps, and text messages to interact with your current and future customers.
3. Searching Content Online
The way we find knowledge has changed, and advertisers need to keep pace and continually develop and publish content to keep pace with changing needs. These notable recent product developments include Amazon’s Echo, Microsoft’s Cortana, and Google’s Home. This product allows you to perform basic voice questions and enable voice control actions by pushing all simple buttons.
4. Email Marketing
Brands use the power of AI to personalize email marketing campaigns based on ratings and user behavior. This will give you a better connection with them, and some luck will allow you to switch to the client.
Machine learning and auto-learning analyze the data of millions of consumers and generate the best time and day of the week to contact users, recommended frequency, and the most intriguing content in the subject and title of the email, which will lead to more clicks of the mail. The A / B test is time-consuming and may have some errors. So, in this sense, AI is your best friend in personalizing each subscriber’s email content.
5. Statistics and Data
- The AI market is estimated to grow as a $190 billion industry by 2025.
- Spending on cognitive systems and AI systems in the world in 2021 will reach $57.6 billion.
- By 2019, AI was used by 40% of digital transformation initiatives.
- By 2021, 75% of enterprises will use AI for their businesses.
Some Case Studies of Brands Using AI for Digital Marketing
Alibaba, a physical store that is a “FashionAI,” uses a technology that responds to the changing expectations of consumers. A recent report by Retail Dive found that 46% of those surveyed said positive experiences with technology boost their confidence in a particular brand. In comparison, 44% said that a satisfactory experience would make them want to go into a business more often.
Starbucks is a brand that uses loyalty cards and mobile apps to collect and analyze customer data. They announced their plans in 2016. Since then, they have built a considerable app experience. Record purchase history, such as when and where you purchased.
Starbucks uses predictive analytics to process this data and provide customers with a personalized marketing message. These messages include suggestions for accessing local stores and suggestions aimed at increasing the average customer order value.
BMW’s AI-enhanced sports car is designed for automotive and technology enthusiasts who value monopoly and early adoption. This car is equipped with technology to learn about driving and automatically tailor the indoor experience of the system to each individual.
The car brand has also released an intelligent personal assistant that allows drivers to communicate with the car, much like a smartphone. This tool can act as a voice activation manual to predict travel routes, send alerts and integrate with other apps.
AI Tools That Will Change the Future of Marketing
AI is certainly a powerful marketing tool. What does it involve? Simply put, AI helps businesses solve one of the most important problems in today’s business: securing consumers. From the planning stage to the customer loyalty stage, AI plays a key role in the success of all marketing campaigns. As a result, organizations that take full advantage of AI will have an edge over their competitors.
- Google Could AI
- Atomic Research
Chatbots and AI almost always come together in the context of maintaining customer relations and digital marketing. WotNot enables automation and enhanced customer management for a win-win situation for both the customers and the service provider.