Artificial intelligence (AI) is the concept of computer systems essentially being able to think for themselves and make decisions based on the information that is being input. AI systems use algorithms and historical data in order to mimic human intelligence and respond to certain actions. This makes AI systems complex and powerful, they have the ability to process a huge amount of data in a quick period of time.
AI has become of increasing importance within many industries and in particular marketing. AI can help businesses create more effective marketing and social media strategies. Businesses are beginning to integrate AI tech into their strategies and as a result they are seeing a strong ROI. It is predicted by 2021 companies will be spending $57 billion on AI technologies (Forbes).
So, how can AI be used in marketing?
AI can contribute to customer personalisation in ways that were not possible before. It is evident that customers consider personalisation as a contributing factor when making a purchasing decision, 73% of customers prefer to do business with brands that consider their personal preferences (Forbes). Connecting data from websites and social media enables companies to send relevant marketing messages, that can be personalised for each user. This can be a time-consuming task and it is made possible through AI.
Social listening is used to analyse the way customers are talking about a product or service on social media channels, it is useful for feedback, discussions and competitor analysis. This provides the opportunity for marketers to identify potential problems and resolve them before they become too widespread. AI provides technology that allows businesses to access actionable customer insights. The shoe brand TOMS used AI to listen to their customers, as a result a sales generator was created. They found that people who were interested in TOMS were also had an interest in My Little Pony, the brand designed a My Little Pony themed shoe and it proved a huge success by selling out in just 48 hours!
Predictive analytics extract information from a variety of data sets, both historical and current to make predictions about the future. This can be used to improve the customer experience and customer service by analysing customers’ purchase behaviour. Based on the generated information marketers are able to make informed decisions regarding their marketing strategy.