Our guest author explains how AI powers personalization, growth, and competitive advantage in today’s dynamic business landscape.
Artificial intelligence (AI) has been a game changer in the business world and its impact on various functions of an organization is undeniable. In today’s highly competitive environment, marketing is the business function that requires AI the most. Consumer journeys are becoming increasingly complex and the abundance of data is increasing exponentially, presenting a huge challenge for marketers trying to deliver personalized experiences.
With the transformative power of AI in marketing, backed by research data and insights, marketers can achieve their customer service improvement KPIs, make data-driven decisions with confidence, and facilitate a more personalized experience at scale, at the pace of the business.
Improve customer service with AI-powered chatbots
According to a Salesforce study, 64% of consumers prefer chatbots because of their instant responses and 24/7 availability. Additionally, 80% of business buyers also expect businesses to respond and interact with them in real time.
AI-powered chatbots and virtual assistants have revolutionized customer service with the automation of frequently asked queries, helping ensure fast response times and high availability for consumers. These intelligent systems use natural language processing (NLP) technology to understand and respond to customer queries in a more intuitive and conversational way.
In addition to providing ongoing customer service, AI-powered chatbots also provide a more cost-effective way to interact with customers. Looking at absolute numbers from the banking industry alone, Juniper Research found that operational cost savings from using chatbots will reach $7.3 billion globally by 2023, up from $209 million dollars in 2019.
Notably, the highly scalable nature of technology (the integration of generative AI, for example) also allows businesses to adapt and improve their customer service capabilities.
Data-Driven Decision Making
One of the main benefits of AI in marketing is its ability to analyze large volumes of data and derive actionable insights. AI can process structured and unstructured data from a variety of sources, including customer interactions, sales figures, market trends, and social media, and apply machine learning and data mining techniques. data to identify patterns, correlations and trends within the data.
This can help marketers predict consumer behavior and make informed decisions to optimize their strategies. For example, AI can segment customers based on their preferences and past behavior, allowing marketers to deliver targeted messages and personalized campaigns.
AI-based recommendation engines have also shown significant potential to drive sales and improve customer experience. A McKinsey & Company study found that personalized recommendations can increase conversion rates by up to 300%. Netflix and Amazon are some notable examples where AI algorithms have been leveraged to deliver personalized content and product recommendations to their viewers, resulting in greater customer loyalty, higher satisfaction, and increased revenue. income.
Personalized communication at scale
According to an Accenture study, 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations. Consumers today expect personalized communication from brands across different channels. Meeting this expectation will increase the chances of converting interest into a sale.
AI enables marketers to deliver personalized experiences at scale by automating content creation and personalization. Natural Language Generation (NLG) technology can generate dynamic, personalized content based on individual customer profiles. This allows marketers to run targeted campaigns and tailor their message to specific segments, leading to higher engagement and conversion rates.
Additionally, sentiment analysis tools, powered by AI, can analyze customer reviews and social media data to gauge brand perception, customer satisfaction and loyalty. A Deloitte study found that 62% of organizations using AI for sentiment analysis experienced a positive impact on these same metrics. Understanding customer sentiment in real time allows marketers to reconnect with past users and respond quickly to issues and concerns, resulting in stronger customer relationships.
The acceleration of digital transformation now requires businesses to adopt a data-driven approach to drive the next phase of growth. From revenue growth to customer acquisition and retention, AI has become an essential tool for marketers. From improving customer service with chatbots to leveraging predictive insights for decision-making and scaling personalized communication, AI is enabling marketers to connect with customers at a deeper level.
As research and advancements in AI continue, its impact on marketing will only grow stronger. Businesses must embrace AI and also pay attention to advances in this area if they want to unlock the full potential of personalized marketing and generate sustainable growth in a competitive market where consumer behavior is constantly changing.
(Our guest author is Prasad Shejale, CEO and Founder of LS Digital)
