What does artificial intelligence bring to the marketing table?
For the longest time, customers have had to contend with marketing strategies that felt impersonal and were also quite general in terms of approach and reach.
However, artificial intelligence tools are today enabling businesses to run advertising that feels friendly and personal, which is important in facilitating a successful sales process.
And there’s much more to gain from tapping into the applications of artificial intelligence, even beyond marketing.
Dynamic pricing is also another important marketing attribute that AI software is improving as well.
When finding the right price ranges for products becomes challenging amid fluctuating demand and supply levels, machine learning software can consistently establish pricing symmetry.
With AI in marketing potential looking promising, how can you ensure your business gets a piece of the cake?
In this article, we’ll be discussing 5 applications of AI in marketing, so that you can learn how to leverage artificial intelligence to grow your business and scale it to new marketing heights.
AI In Marketing: How To Leverage AI To Grow Your Business
Let’s get started.
1. Targeted Advertising
As a business owner, you know how important it is for marketing ideas to be directed at the right audience.
Understanding the effects of strategic advertising is crucial to avoid resource wastage by minimizing the appearance of ads to customers with little buying interest.
For example, an ad campaign about insurance wouldn’t be too effective if it mostly reaches a market with an average age of under 20 years.
The situation, in fact, has gotten a lot worse in recent years. A SurveyMonkey survey, states that over 44% of your audience say that ads are irrelevant. That means close to half of the market has absolutely no interest in whatever you’re putting out.
So you need to make your marketing campaigns more effective and specific, by using artificial intelligence software to analyze and act on market data.
Via machine learning algorithms, you can establish what types of ads generally tend to do better in your niche.
ML algorithms can ingest historical data to decipher successful advertising strategies with regards to popular platforms of use and frequency of advertising¸ among several other important variables that you may not typically consider.
RedBalloon, a travel agency heavyweight, implemented AI software for targeted marketing. Specifically, RedBalloon uses an AI tool known as Albert to identify hidden customer segments.
The company was able to do this with little human involvement as Albert can learn and offer insight mostly from past data.
2. Dynamic Pricing
Do you often lower or increase product pricing depending on product demand changes, among other factors?
The problem with traditional dynamic pricing is that it is a slow and error-prone process that depends on volatile market insights. Mistakes are easy to make, and the trends can swiftly change direction leading to pricing errors. It’s therefore important to perfect your dynamic pricing.
A Prisync market report made it clear that 60% of leads say good pricing is at the top of the priorities when figuring out whether to proceed with a purchase.
Hence, inappropriate pricing throughout the seasons leads to profit margins that aren’t as high as can be.
By employing machine learning, AI tools are able to generate reliable and accurate dynamic pricing reports for better pricing throughout the year.
Dynamic pricing and AI, in general, continue to be huge players in present-age marketing, which is why these top artificial intelligence courses are vital for the modern-day business to not only keep up with the times but also thrive.
As opposed to a rule-based dynamic pricing system, an AI-powered machine learning software is flexible and adjusts to changing market insight to keep your pricing where it needs to be at all times.
ML dynamic pricing tools can consider sentiment analysis, new cart additions, and inventory levels, among other data fields to make pricing suggestions with perfect timing.
As a result, your business will benefit from long-term forecasting as a deep neural network outlines the possible sales path ahead.
AI dynamic pricing software generates suitable prices for Taxi company Uber.
In line with the availability of service and changes in demand, Uber can offer rates that take advantage of fluctuating market conditions.
3. Chatbot Marketing
Would you like to learn a secret about marketing?
Then listen closely.
For customers to trust your business and be loyal to it for the long term, you need to ensure that the customer experience is pleasant straight from the onset of the relationship.
One of the ways to ensure customer satisfaction is via chatbot marketing, which provides timely service and can also facilitate an entire lead cycle from interest to purchase.
Chatbots can be the first line of customer service when a client comes asking for information online about a product or the business.
Preferably, the chatbot should be able to offer an intimate user experience, by referring to new leads by names drawn from social media accounts.
After that, comes the new crucial step of chatbot marketing, which is conversion.
Instead of relying on open-ended conversations that chatbots may not understand, an AI-powered chatbot with pre-programmed response choices is ideal. These options should organically lead to a product or service solution you’re offering.
Additionally, consider chatbot software with voice search capabilities, enabled by natural language processing.
Most web searches are shifting toward voice searches and AI, and it would even be more convenient for your leads when interacting with the business in the most effortless way possible.
4. Product Testing
Does your business have some sort of testing procedure for clients?
Depending on the exact type of business, product testing may or may not be part of the agenda.
However, it is still very important because it allows customers to experience the item, and even customize it according to preferences if such services are available. In turn, the result is generating strong leads.
Through a combination of machine learning, computer vision, and augmented reality, marketing, and product testing, can become more immersive and interactive.
Leads can try out products virtually and remotely, thereby bridging that gap of uncertainty before that “add to cart” decision.
Nike, for example, is using its Nike Fit project to help clients find the right design and shoe size using smartphones.
The AI-powered software performs object identification with an accuracy of 2 mm due to computer vision.
What’s more, the footwear giant also offers augmented reality tailoring for the designed shoes, allowing clients to customize color patterns for the perfect print. They then use the data through machine learning to establish trends for future product decisions.
Your business can borrow a leaf from Nike’s model.
5. Personalized Marketing
How does your business source data on what items clients are likely to buy?
Perhaps there’s a marketing or sales team that goes through mountains of data and statistics, about what products do best at what times or seasons.
Alternatively, supply decisions are made on a day-to-day basis as gut judgment leads the way about what might be in for that day.
Either way, the common theme is that traditional market insight strategies are not very reliable or accurate.
Get around marketing guesswork by using computer vision software to improve accuracy when anticipating client’s needs.
AI-image recognition is already in action at some McDonald’s outlets, which process visual data to inform the type of items presented to customers.
For example, these McDonald’s locations can curate a specific menu depending on age and gender, and historical data gathered by ML algorithms.
And chances are high that you’ll find your favorite items on it, given that the software also considers other vital variables like weather, for example, to suggest a choice of food or beverage.
Follow in the same footsteps by using computer vision software to gather visual data that’ll predict clients’ next course of action.
Are there any AI-powered solutions making a difference in your business today?
If not, you’re missing out on the many benefits of artificial intelligence in marketing.
For example, targeted advertising will be a lost opportunity, meaning you’ll be spreading the advertising net too far wide, and using lots of resources in the process for little ROI justification.
And that’s not the only way your business could lose.
Dynamic pricing strategies will be off the mark, and ads may be stuffed to the bottom of SERPs. All the time and work will not be worth the returns.
So change your marketing fortunes and solve marketing problems by using AI-powered tools, such as AI-powered Chatbots and computer vision-based product recommendation systems.