Published on June 11th, 2021 | by Bibhuranjan0
How Artificial Intelligence Will Change The Future Of Marketing
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines. Many businesses leverage the power of AI. Companies like Microsoft is focused on AI development, revealing the importance of AI in the time to come. Tech goliaths like Google have already invested in DeepMind, a company focused on artificial intelligence development.
In an unset future, AI is set to influence and change business models, sales processes, customer service, customer behaviour as well as marketing strategies.
AI is going to make our lives better in the future.
—Mark Zuckerberg, CEO, Facebook
To better understand how AI would change the present dynamics of business, let’s look into a few examples.
AI-enabled, driver-less cars which once were out of a science fiction novel are now a reality. The use of this technology is set to remodel both custom’s behavior and business models. Ride-sharing and Taxi/Cab businesses have to evolve to avoid being sidelined by AI-powered transportation business models, which is set to rise. This will lead to the need for automobile insurance from individual customers, reduce the market of breathalyzers as fewer people will drive and increase the market for car security systems, protecting cars from being hacked.
The sales process will also be affected by advancements in AI technology. As we all know that most of the sales staff depend on telephone calls as a vital part of their regular sales processes. However, the future paints a different picture as in the future salespeople will be aided by AI-powered agents, who would monitor telecommunications in real-time. This is possible through the voice analysis capabilities, which an AI-powered agent will use to understand a customer’s tone that a problem has not been resolved and give valuable feedback to the human salesperson, in real-time, suggesting the valid steps to take. Even though it is a bonus for a salesperson to be assisted by an AI but could also act as a catalyst to negative feedback if the customer feels uncomfortable being monitored by AI.
Shipping-then-shopping Business Model
Pandemic has taught us to love and respect the online shopping experience. The current business model presently used by online retailers, function on a system where a shopper places an order and the retailers’ ships the product. With AI now online retailers can predict what their customers want. This prediction model is far from perfect now but companies are working on it. This will enable retails to adopt the shipping-then-shopping business model. It is where a retailer would use AI to recognize a customer’s product choices and ship the item to the shopper without a formal order, with shoppers having an option to return what is not needed. This shift is bound to transcend shoppers’ behaviors, business models and a company’s marketing strategy. Businesses such as Trendy Butler, Stitch Fix and Birchbox and already using AI to predict what their customers want.
Doesn’t it make you wonder, how common is AI? A report by Gartner states that in 2019 around 37% of the companies implemented AI of some sort. This has also led to an increase in AI development companies. So there’s a fairly good chance that we might be using AI without even knowing about it.
On that note let us take a look at how artificial intelligence will change the future of marketing.
According to studies, more than 2.5 quintillion bytes of data are created daily. Businesses have started to use artificial intelligence in content creation. This has given rise to a new field, coined as Content Intelligence, where AI-powered tools help the content creators by giving them data-driven insights and feedback. Now marketers will be able to enhance content creating abilities as they would be aided by an AI-enabled, continuous feedback loop, yielding them greater success.
Here are a few ways that AI could help marketers:
- Creation of social media posts
- Write data-rich blog posts that could result in better ranking
- Personalized website and emails focused on the acquisition
- Can A/B test landing pages and improve their conversion
- Conduct efficient keyword research and analysis
Manual content curation and creation is one of the most tedious jobs for a marketer. With AI, marketers can create content easily and effectively as they would be assisted in topic selection, content profiling, accuracy and more.
Here are some well known AI and Machine Learning (ML) content creation and strategy tools:
The use of AI in predictive analytics is another area where AI will help marketers. AI can help marketers forecast the future behavior of customers, helping them create better marketing campaigns and develop effective products or marketing strategies.
For example, Walmart in 2004 accumulated all transactional data from its store to understand the purchasing habit of their customers. They learnt that right before hurricanes hit the city, strawberry Pop-Tarts were the most sold around seven times along with beer. Now with the use of AI marketers can derive such granular level data within minutes. AI uses algorithms to analyze massive sets of data so that it can optimize towards a specific objective. This can help marketers devices effective marketing strategies to boost sales.
With AI marketers would be able to:
- find out what’s wrong with a website (eg. load speed) or other marketing platforms
- understand where audience disengage during a webinar
- segregate the right potential customers
- predict a shoppers buying behavior, as which product would your target audience would be buying
As talked about earlier, AI can predict what the customers are most probable to buy. This means that AI can reveal new trends and customer insights help device effective advertising efforts.
For example AI can create ads, write headlines and push notifications using your most used marketing language and tones. AI tools can change different parts of the advertisements in order to personalize it according to your targeted audience. AI can do this by changing the fonts, text, images, adding music etc. to meet the taste and preference of a specific target group.
Below mentioned are some areas where AI can help in advertisement:
- explore new advertising channels which are not used by your competitors
- use AI tools on different ad platforms for effective targeting, optimize budget and ad delivery
- use AI-powered marketing platform for autonomous media buying
- use of ML algorithm to find the most effective copy-writing, bids, layout, targeting etc. for wide spread PPC campaigns
AI makes email marketing effective in two major ways, decreasing cost and increasing revenue. AI-powered email marketing tools can help increase click rates and open rates (along with other metrics), making your email marketing campaigns profitable and successful. It can also help in running the email marketing campaign to its optimal levels, helping your team to produce results for your marketing activities. Leading to increase in revenue with the decrease in cost.
Here’s how AI would help in eMail marketing campaigns:
- AI can write good subject lines
- AI can create personalized email content for specific target audiences
- AI can effectively restructure email campaigns based on historical data
- AI can optimize send times for max engagement
- AI can optimize the mailing list
AI is helping shoppers by giving them product recommendations online. AI tools improved prediction which timely prompt marketers of products that their customers are going to buy. AI-enabled recommendation engines help shoppers by making quick recommendations that are uniquely tailored for each customer, based on their preference and behaviours. Amazon would be a good example where AI powered product recommendation is benefiting the company, particularly their bottom line.
How are AI powered product recommendations helping businesses:
- Saves time as it aids in selecting recommended products
- Leads to customer satisfaction
- Increases sales and boosts conversion
- Improve customer service
- Attracts new customers and promote loyalty
Improved Customer Service
Many companies are using chatbots which are powered by AI to have conversations with the users. This is a great avenue to boost engagement and brand credibility and improve customer loyalty. Displayed efficiently during the pandemic, when customer care representatives were not available chatbots worked all around the clock catering to customers’ issues.
Below mentioned are different ways of how an AI can help in customer service:
- AI algorithms gives insights to better understand your customers
- AI helps organization take real-time decisions based on the issues reported by a customer
- AI by using predictive analytics and assists staffs to take effective actions based on the actionable insights on the interaction between the business and the customer
- AI can offer personalized content to the customer which could be useful and relevant.
Nowadays various software development companies offer AI development services, it is upto business on how to use AI to maintain their competitiveness. From customer service to content creation, sales, marketing etc. every aspect of your business can benefit from the use of AI. This article was only focused on the use of AI in the field of market, however the use of AI is numerous and can benefit all aspects of a business. There is no denying that AI will change the future, business, processes and even how we live our lives today.
If you think that I have missed anything and wish to add, please mention in the comments below.
Nora Winkens is a copywriter and content writer for Daffodil Software. She specializes in ghost blogging, email marketing campaigns and content for sales pages. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases your search engine visibility.
Cover Photo by Campaign Creators on Unsplash