Marketing has transformed over the years, with technology being used to augment human efforts. Digital marketing, which is a comparatively cheaper and more effective way of marketing, relies heavily on AI. Artificial Intelligence, or AI, has made its presence felt in every aspect of business, no matter whether it is production, operations, human resources, finance, sales, or marketing. Statistics have revealed that using AI can boost business productivity by up to 40%.
Using AI can boost business productivity by up to 40%. (Image source:rawpixel.com)
AI systems are getting smarter daily and perform various tasks, allowing humans to focus on more complex tasks. So let’s discuss eight ways in which AI will revolutionize marketing.
What is Artificial Intelligence(AI)?
There is no specific answer to this question as it is an interdisciplinary science with multiple approaches, but at its core, AI is an amalgamation of technologies capable of performing tasks that generally require human intelligence.
Use of AI in Marketing
#1 Conducting Market Research
Big Data has become a buzzword, and data scientists are in demand. It is not humanly possible to analyze this data, and that is when artificial intelligence comes into play. Data scientists use AI tools to analyze consumer data and can get several insights. This data analysis can be used to make decisions related to pricing, launching new products, packaging, sales promotions, and offers. Customers can be categorized based on several parameters and targeted according to their preferences.
Organizations are using chatbots extensively to market their products and services online. These AI tools use Natural Language Processing (NLP) to respond to queries from potential customers. Chatbots can easily handle routine queries and provide leads to marketing executives to close the deal. They can be used as a data-gathering tool, reduce staffing needs, and provide customers with a 24×7 communication channel. Chatbots use machine learning to evolve and get smarter with time.
Chatbots help with data-gathering , reduce staffing needs, and provide 24×7 customer support.
#3 Content Marketing
Content creators can use AI tools to help with generating content and customizing it. Although the core of the content will be generated by humans, sending automated and customized messages can be handled by software tools. Creating images of non-existent people or objects is also possible with AI-powered tools. Email marketing is a type of digital marketing in which automated, customized emails are sent to the target audience. As technology gets smarter, more sophisticated marketing content will be generated.
#4 Demand Forecasting and Dynamic Pricing
A.I. can be utilized to analyze consumer interests and world events to determine whether there will be a rise or fall in demand for a particular product. This data can also be used for dynamic pricing to control the supply of products during panic buying and optimize your business’s revenue. AI-powered dynamic pricing algorithms enable firms to price their products/services optimally, even in real-time. An example of this is flight tickets, whose prices fluctuate every day.
#5 Selecting the Right Audience
Marketing teams face the challenge of placing their ads on the right platform at the right time. They can have a plan based on user preferences, but they are not able to alter the plan in real-time based on the latest consumer information and reach the target audience. AI tools can use machine learning to show specific online ads to audiences based on their location, purchase history, and profile. This will enable online ad sellers to focus on personalization and provide a high ROI to their clients. AI and machine learning can also be used for retargeting, which is basically showing relevant online ads to a prospect based on their search on Google or an eCommerce store.
#6 Web/App Personalization
Web or app personalization is all about optimizing customers’ experiences and helping them quickly achieve their goals. It can be used to inform the visitor about products/services being offered and their features. The website/app should be customized according to the preferences of the customer to ensure meaningful customer engagement. All these will result in more conversions and sales, making the marketing activity efficient and effective.
#7 Voice Search
Alexa, Cortana, and Siri are all popular assistants on different platforms, making use of Voice Search, an AI-powered technology. Voice assistants help in generating more traffic and customer retention. Sales from voice shopping are expected to rise to USD 40 billion in 2022 from a mere USD 2 billion in 2018. Voice search will become increasingly more popular as the technology becomes more accurate. This makes voice search a revolutionary marketing tool to showcase your products.
Sales from voice shopping are expected to rise to USD 40 billion in 2022 from a mere USD 2 billion in 2018. (Image source: wayhomestudio)
#8 Lead Scoring
Lead scoring is similar to grading students based on their activities and performance. Similarly, prospective customers can be categorized based on their actions and engagement patterns. The higher the activity of a particular lead, the higher the score for that lead. Marketers can use predictive algorithm-based lead scoring, which predicts the lead’s value in advance.
As far as the use of AI in marketing is concerned, we have just seen the tip of the iceberg. With smarter technology, AI will be extensively used to reach geographically and demographically diverse audiences. With better reach and marketing, a business can grow in a short span of time. No doubt, AI will revolutionize marketing and enhance the overall customer experience. If you own a business, this is the right time to invest in AI-powered marketing tools.
Victor Ortiz is a Content Marketer with Goodfirms. He likes to research, blog about technology-related topics and is passionate about traveling and sports. Goodfirms offers a wide range of IT services.