AI Marketing: A 2018 Must Have

AI. It’s a buzzword that you’ve heard more than “Despacito” this year. The hard part is understanding who is truly providing innovative technology, and who’s just blowing steam.

While AI is defined as the development of machines to be able to perform tasks that require usually require human input, the broader and more useful applications of AI are far greater than just placing an order at McDonalds.

AI is about getting information quickly. Really quickly. At a rate that’s unfathomable for a human to collect in such a short flash. While AI is being utilised across various industries, marketers are one of the last to put AI in the forefront of solving daily challenges.

So, how do you start?

How Does AI Relate?

‘AI Marketing’ as a term is quite expansive.

Let’s start by looking at Stichfix, an online shopping service, who are using AI to improve clothing predictions. They do this with hundreds of algorithms created by data scientists. It learns from images so it can view a client’s Pinterest pins and learn what style he or she is favouring, even if the user can’t articulate it in an online form.

This user experience customisation is improving overall satisfaction. Stichfix is currently making $730 million in revenue, so I guess they’re doing something right. 

How Can It Help You?

AI marketing helps retailers produce a more personal message for customer targeting. It’s not only showing clients relevant products, it’s delivering these messages in a style the user prefers. This can help deliver answers in real time as marketers chase existing clientele. It tells them who to target, which products to alert them to, why they’re buying these products and more.

Making use of AI marketing to label clients allows marketers to isolate individuals based on their actual behaviour, and even go as far as to anticipate their likes and needs. Essentially, AI is helping to write the “little black book” that marketing specialists have been wanting forever.

While we have seen thought-provoking results using AI to help marketers better engage with their customers to improve the experience, we have not yet seen AI leveraged to help a marketer better comprehend where to capture new customers when they’re in purchase mode.

With AI, marketers are now able to predict patterns and links, allowing them to foresee what customers want to purchase and where they’re most likely to buy it. This goes another step further into showing marketers where to invest online advertising budget, which is the ultimate question needs answering

eMarketer reports that online advertising spend has increased from 28.3% in 2015 to 38.4% in 2017, and is projected to hit 44.9% by 2020, far surpassing television advertising. So with all that money on the table, businesses want to make sure what they’re buying is reaching the right people and increasing their bottom line.

While some customers may be curious or leery about AI marketing, this technology is actually a benefit. The customers are able to tap into their preferences. Their experience improves by being served ads that are applicable to them, versus ads that seem spammy and irrelevant.

A study by the Digital Advertising Alliance shows that customers have significantly better experiences with brands who have ads that seem relevant. And customer experience leads to repeat customers, which, again, leads to more cash flow.

Still not convinced?

Take a look at Amazon, an e-commerce powerhouse that you may have heard of. Amazon gets the “gold star” for leveraging AI to improve customer experience. Ever get to the checkout area and add an item to your cart that you weren’t planning on purchasing? It’s likely thanks to their “people who bought this also bought that” function. This tool utilizes AI to hone in on customer preferences and show products that are most applicable to them.

Regardless of your stance on AI, there’s no doubt that this technology is here to stay.  We’re only seeing the beginning stages of what it can do. If you’re in the marketing space, implementing AI into your strategy is necessary for survival.

At SLX we spend our lives ahead of the curve. So, trust us when we say we’re on top of AI! Call 1300 859 600 today and ask us how artificial intelligence can help your business!