Blog: How entrepreneurs can make better use of AI in digital marketing
The most amazing creation of mankind to date may be artificial intelligence (AI). Its applications have permeated every aspect of society, trade and even governance with its growing presence.
AI manages and optimizes various aspects of our daily lives from the smartphones we carry in our pockets to the banks where we store our money.
But in the field of e-commerce, the most successful applications of AI and machine learning were recognized and used. Currently, the e-commerce market controls a 14% global share of retail sales and is set to become the largest retail channel by 2021. Online entrepreneurs are investing millions in digital marketing with their booming market to build a robust digital footprint, increase their online exposure and generate more revenue. With AI’s countless advantages in the picture now, it becomes imperative for online entrepreneurs to leverage their powerful applications and maximize their online business strategies’ efficiency.
AI is now an essential ingredient in the marketing mix of every startup, able to reduce operating costs, deliver improved customer experience and streamline your marketing tasks. But how exactly can online businesses use it in their strategies for digital marketing?
i. Curating content and optimizing search
In any successful marketing model, content has always been one of the decisive factors. Not only can content be created, but also curated according to the targeted customer segment, thanks to AI. AI applications have helped online businesses develop better-performing content, enabling them to reach the right audience with more enticing proposals. With AI, online entrepreneurs have made their marketing campaigns more accurate by eliminating the guesswork that human personnel had to do. Most AI algorithms use user habits data, buying behaviors and interaction patterns to select areas of interest for the target customer before submitting relevant recommendations to them. By bringing user-selective content to the search log of the client, AI increases the likelihood of conversions exponentially.
Netflix, one of the largest media service providers in the world, also uses AI to provide its subscribers with video content. An AI recommender is responsible for eighty percent of what is watched on Netflix.
ii. Learning chatbots and data
A key addition to the digital marketing toolbox is chatbots. Chatbots play a more important role than ever with AI’s late intervention, offering unmanned customer support services to marketers that increase engagement, reduce business costs, and improve sales.
Chatbots help online stores run customer service 24/7, provide real-time answers to basic inquiries, generate unique email content, track customer behaviors and provide product recommendations. Chatbots help online stores run customer service 24/7, provide real-time answers to basic inquiries, generate unique email content, track customer behaviors and provide product recommendations.
Starbucks, one of coffee’s biggest names, uses its Facebook Messenger’s AI chatbot to take complex customer orders. Chatbots will help save $ 8 billion in business costs by 2022, according to an infographic compiled by FME.
iii. Search for voices and virtual assistants
Voice-enabled shopping is one of the technology trends most discussed in recent years. Voice shopping is set to increase 20 times over, reaching the $ 40 billion mark by 2022, according to PR Newswire. A vast majority of online customers are currently using voice search to search businesses, search products, and communicate with brands. With its integration with powerful AI virtual assistants such as Google, Alexa, Siri and Cortana, voice search has gained significant popularity against traditional input methods. According to Gartner, without a screen, the year 2020 will be experiencing 30% of all web browsing sessions.
Its rising trends have also complemented the increasing use in homes of VPA-enabled speakers to execute voice commands for various types of home appliances. Optimizing your content with voice search is therefore crucial if you are to maintain a competitive edge on the market and make your online business future-proof.
iv. Analytical predictions and sales forecasts
AI’s ability to predict customer behaviors and forecast sales is one of the biggest advantages in digital marketing. AI combines data mining, statistics and sales modeling to predict future results for online businesses using predictive analytics. In addition, with the rise of machine learning and big data, opportunities for digital marketers have been further diversified, who can more accurately measure their activities and focus on specific areas in their digital strategies.
Predictive modeling, for example, has shown impressive results in customer segmentation, using AI to segment target groups belonging to multiple variables. Similarly, online entrepreneurs have helped predictive analysis to score leads with better maturation, nurture their campaigns from demographics and behavioral data, and increase their bottom lines with upselling and cross-selling, while allowing detailed customer preferences research.
Using AI sales prediction, Walmart, the American multinational retail giant, observed 10% to 15% increase in online sales for $1 billion.
v. User experience and customisation
Any successful digital marketing model is a defining metric of a good user experience. Because every online customer is looking for a seamless user experience when interacting with an online store, many online entrepreneurs are focusing on providing their customers with tailored UX to increase conversion potential. However, the identification of customer types becomes a challenging task for marketers with a highly diverse online community divided into regional preferences. Marketers can customize their store outlooks for various customer groups with AI algorithms, using AI for geolocation and behavior tracking to offer preferential user experience in their stores. Not only does this self-optimize the website, it also improves the conversion rate optimization (CRO) of the store and creates a solid brand identity on the market.
A 2017 Evergage real-time customization survey showed that 33 percent of surveyed marketers used AI to deliver custom web experience.
It has also had its fair share of controversy and skepticism in the tech world, with AI’s precedence widely recognized among online entrepreneurs and corporations. But at the moment, AI is far from causing any life-threatening events, while its e-commerce benefits are irrefutable and need to be implemented for online businesses in order to achieve better productivity. By adding these five key AI applications to your digital marketing model, you can not only increase your online venture’s productivity, but also significantly influence your customers ‘ choices in online shopping.
Originally published at https://planetstoryline.com on May 6, 2019.