AI adoption is more apparent in marketing than any other business function. There is a reason for it. Marketing’s needs are manifold and capabilities are complex (think customer predictions or target advertising). This calls for a wider AI application, thereby more visibility.
Makes difficult tasks simple
AI makes difficult tasks simple. How? Imagine you are now online, browsing for a product, AI understands your needs and nudges you in a desired direction. AI savvy brands enhance your engagement by prompting you with their USP, quality, price advantage and more. If you’re still undecided, AI connects you with a human agent who can even co-browse with a shared screen and puts you in the desired spot.
You have now added a product to the cart or even purchased it. But AI does not leave you at that!! It sends you motivational messages (e.g. “Great Purchase”), updates (e.g.” Features added just for you, check it out”), recommendations (Based on the recent purchase, here’s a recommendation). AI bots promote upselling and cross-selling (Upselling is encouraging the customers to take a comparatively higher-end product than the one they look for (e.g. A platinum jewelry in place of a gold ornament) Cross-selling prompts the customers to buy a related or complementary item (Matching trousers when they buy a shirt)
The What and How of AI Adoption
AI adoption sparks off smart marketing overall; notably in the areas like lead generation/nurturing, customer segmentation, content creation, CRM, branding and customer intelligence.
Lead Generation/ Nurturing
Lead generation identifies prospects and nurturing builds up their interest. Successful nurturing translates into customer conversion and sales closure. Traditionally, brands relied on cold calls, speculative data and assumptions as handling of voluminous data was a massive task. The advent of AI brought in changes like: –
- Analyzing large volume of data in minimum possible time.
- Capturing leads from online resources.
- Qualifying the leads to know the likelihood of their purchase.
- Lead Segmentation: Dividing the prospects based on specific criteria (e.g. behavior) for tailored outreach.
Customer segmentation
When lead segmentation is dividing the pool of prospects into categories, customer segmentation is grouping the company’s customers, based on various attributes (e.g. demographics). When lead segmentation aims for conversion of leads, the objective of customer segmentation is customer retention (e.g. offering discounts on valentine’s day for youngsters) AI makes the segmentation possible at the micro level (e.g. age group or gender). Look at a message from a leading Jeweler to their female customers, “Salary Credited, but before you fulfil your responsibilities, prioritize yourself and indulge a little. We have designs that fit all pocket sizes.”
Content Creation
AI algorithms search through bulk of social media data, ascertain consumers’ inclinations, ideate topics and assist in creating drafts for general or customized content. Algorithms help content optimization for Search Engines (e.g. best keywords to increase click-through) They also provide feedback on reader engagement etc. for making improvements. AI powered contents are widely used in customer care by chatbots. Common criticisms against algorithm content are bias (e.g. gendered language. Men and women are gendered and everyone is inclusive) and ethical insensitivity. Automated content lacks creativity and emotional appeal (e.g. an ad message, “Every time you smile, we too smile. We have smiled a million times, because we’ve seen those many customers.”
CRM (customer relationship management)
AI Based CRM is the buzz word among the companies, big or small, these days, particularly e commerce players. It helps in customer conversion as well as retention. Simply put, it is a digital platform which enables the companies to collect, collate and evaluate customer data from various interactions and touchpoints (e.g. contact information, interaction with sales / support, feedback) The ultimate aim is to optimize customer relations. Popular pay offs of AI-CRM are:
- Predictive analytics: Precision strategies based on customer behavior and preferences (e.g. traditional attire during festive seasons)
- Chatbots: Instant and personalized responses round the clock (e.g. Flight details on airlines)
- Personalization: Agile and data-driven solutions help personalized messages (e.g. A birth day message from an ecommerce platform, “Cakes, Confetti & Crazy Discounts” that is our gift for you for this special (birth)day”
Branding
Branding creates a unique identity for your business so that customers remember you. Personalized experience to the customers (prospects included) can make them to remember you. AI helps to analyze the large customer base for the purpose. AI also ensures consistency of branding across the channels. A good example of personalized content is Amazon Prime Movies. AI algorithms analyze viewing patterns and generate personalized recommendations for each user (They ask who is viewing: You or others). Hence their brand identity is centered around personalized experience.
Customer Intelligence (CI)
Customer intelligence stems from customer analytics and aims to attain improved customer experience(CX). CI is about getting insights about customer needs, motivations and behavioral pattern. The aim is to drive growth by adding and retaining customer base by paying attention. AI helps customer segmentation in the following forms for precision communication:
- Behavior: Based on purchasing the same products, Similar feedback, similar reactions to SM posts.
- Location: Based on the locations (e.g. Zomato uses customers’ locations to suggest closest restaurants)
- Buying Patterns: Amazon prompts “These items were bought together”
- User Flows: E.g. the products searched, products added to the cart, and the product purchased
Bottom Line
AI powered marketing is a game-changer. It transforms the way you do business. From predictive analytics to personalized services; from consistent branding to efficient workflow, AI will turn your marketing into an agile, data-driven pursuit.
Learners’ Opportunity
ICFAI Online MBA provides insights to the various latest trends in marketing and guides on how to use them effectively. For more details, check our program @https://online.ifheindia.org/
Discussion Question
Given a choice what should be your focus for AI implementation (lead generation/nurturing, customer segmentation, content creation, CRM, branding and customer intelligence)? Why?
Key Words
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Source Article
HPE-Green Lake- The artificial intelligence journey stories from the trenches
Thomas H. Davenport + 2- How to Design an AI Marketing Strategy-HBR Newsletter-July/Aug2021