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Table of Contents
Artificial intelligence (AI) is being called "the technology of the future" by marketing experts because it has the greatest potential to increase ROI (return on investment). Many believe that AI will have a greater long-term impact on marketing than the invention of social media. There are several ways that intelligent algorithms can be used It is conceivable that artificial intelligence will be able to produce content on its own in the near future - with the highest conversion rate for the target demographic. The innovation also eases the burden on customer service staff. It takes inquiries 24 hours a day, 7 days a week and, as a chatbot, provides quick answers in the customer's language.
As these examples show, learning algorithms can improve the interaction with the consumer throughout the life cycle. In certain areas, they can already partially replace human tasks. Artificial intelligence helps to make the complexities of marketing manageable. However, if you want to use self-learning algorithms, you need an integrated data infrastructure.
The enormous potential of artificial intelligence in marketing is undisputed: according to studies, 60 percent of customers want AI for a better customer experience. Intelligent algorithms use data collected with other techniques to perform automated consumer analysis, segmentation and targeting.
AI can improve marketing activities across the entire customer lifecycle by automating them. In many cases, however, its use requires the development of end-to-end consumer data in a system that integrates multiple data sources.
Artificial intelligence attempts to emulate human-like intelligence with the help of technical possibilities. In order to be able to replace a human in some aspect of his or her work, a machine must be able to learn. Neural networks, for example, are used by developers to mimic the functions of the human brain. However, with artificial intelligence, these technologies are excellent for improving productivity.
By integrating with AI-based systems, it will be possible to have conversations with customers in natural language format, create presentations in natural speech, and identify in real time the information of each area of the consumer lifecycle. While these technologies have not yet fully realized the potential, a critical factor will be the accuracy of the results.
In today's data-driven marketing, the focus is on analysing consumer data and developing the most appropriate marketing methods. This is shown by research into current trends in marketing metrics and new technologies, as well as evaluating ROI: 29 percent of marketers are using AI in their business. Compared to last year, this represents an increase of 44 percent. The respondents confirm that artificial intelligence can already be a great help in almost all areas of marketing: more than half attribute a clearly positive ROI to the use of AI.
Examples of applications of artificial intelligence in marketing subtasks
In all these areas, real-time availability around the clock is the great strength of intelligent automation. If telecommunications and the internet have long removed the space barrier, the time barrier is now falling. On a larger scale, AI is helping marketing decision-makers allocate their budgets. Which marketing channel should be used and with what focus? These questions are answered by artificial intelligence, which analyses the wealth of available consumer data from a variety of source systems. The more accurately algorithms can determine the value contribution of individual channels and interactions with the accessible amount of data, the better. The digital marketing assistant uses this information to create a comprehensive plan. At the same time, AI helps with current and future budget planning.
When using intelligent algorithms, the focus is on service. This can be interpreted in many ways: Exactly segmented customer groups and their differentiated address ensure that customers only receive the information from a company that represents added value by responding precisely to the interests and needs of the customer.
Think about staggered communication with the buyer of a high-quality men's shoe. Shortly after the transaction, the customer receives a personalised offer for care products that match the material and colour of the shoes. From the upcoming winter collection, an algorithm can suggest exactly the new shoe models that match the customer's taste. With each purchase, the customer profile is updated and gains precision with new data. The offer of an in-house repair service can be used as a hook to re-establish contact. Since this works entirely without human activity, two positive effects occur at once: you strengthen customer loyalty through the increased relevance of the communication and at the same time you can use the manual work of your marketing team more productively. But despite all efforts to increase efficiency through automation, personal contact between people still represents an important added value.
Many companies and marketers still find it difficult to implement the use of artificial intelligence in the organisation and to use it as a central part of evaluations (keyword performance marketing). In order to convince internal stakeholders, a use case with practical relevance is needed in which adaptive algorithms can prove their potential. You can start where many marketing experts see clear room for improvement anyway: In the productive use of customer data. For example, use customer data from a loyalty programme or the CRM (customer relationship management) system to derive customer segments. Artificial intelligence does not keep a static description of the customer groups, but expands and specifies them over time with each new interaction. Check whether differentiated processing of the identified segments improves the ROI of the selected channel or customer segment.
In the retail sector, it is conceivable to remind occasional customers of your company via online advertising media. Regular customers are offered a referral offer to strengthen their loyalty and generate new leads. Formerly loyal and profitable customers can be won back in a targeted manner via newsletter offers. Advanced AI applications draw conclusions from campaign success and learn from this to consistently increase the ROI of the individual marketing tools and channels. In this way, you can increase the profit and turnover of your company and promote marketing to a central and relevant element of the entire corporate strategy.