AI Marketing: How to Use Artificial Intelligence Marketing
Written by MasterClass
Last updated: Nov 9, 2022 • 3 min read
Artificial intelligence marketing uses AI tools to study customer data, predict customer behaviors, and increase customer engagement by sending the right message at the right time. Learn how to implement AI marketing efforts.
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What Is AI Marketing?
AI marketing, short for artificial intelligence marketing, uses machine learning and real-time data analysis to gain customer insights and better inform, streamline, and optimize digital marketing efforts. Marketing teams use AI to gather information on target audiences and efficiently meet customer needs. The use of AI marketing can help marketers implement marketing tools at impressionable parts of the customer journey.
Examples of AI marketing might include a pop-up when customers purchase a book online to see if they’d like to add a bookmark or an automated email coming to a person’s inbox at times when they’ve previously looked at sales offers. Learned marketing data informs how companies present themselves to customers to turn browsing into buying.
3 Benefits of Using AI in Marketing
AI’s data-driven algorithms can benefit marketing campaigns. Some ways in which this marketing technology can help companies include:
- 1. Clear segmentation: Sharpen your email marketing and content creation with AI marketing tools. AI’s data science helps marketers break down customers into various categories: by subject line open rates, purchase history, spending preferences, and more. Clear market segmentation can inform the marketing activities and information for different segments.
- 2. Improve customer experience: Chatbots are a part of modern marketing and can help improve customer relationships. Automation in responses shows attentiveness and can quickly resolve customer issues.
- 3. Increase ROI: AI constantly updates and learns from data analytics in CRM databases. Marketers can take efforts to the next level based on these insights to better target their audience and increase their sales revenue and return on investment.
4 Types of AI Marketing
AI marketing takes many forms; some examples include:
- 1. Big data: AI empowers marketing teams to practice data-driven decision-making. Big data describes a high volume of data registering at fast velocities. Big data lets companies more readily attribute values across channels and make decisions based on the variables they choose to analyze.
- 2. Chatbots: Chatbots are the bots that communicate with customers while shopping on a company’s site. Typically, a box populates at the bottom of the screen with automated replies. The bot can direct browsers to a customer service representative for complicated questions.
- 3. Content suggestions: Like streaming platforms give viewers personalized recommendations based on previous viewings, AI technology can tell shoppers or subscribers what to look at next based on content or SEO (search engine optimization) keywords. Content suggestions encourage people to spend more time on a given site and move through pages before a hopeful purchase, benefitting e-commerce sales.
- 4. Pop-up ads: Marketing teams can preset ads to display while customers shop online. These ads might feature add-on items or information about sales. Display advertising can effectively increase sales.
How to Use AI in Marketing
As with any marketing strategy, AI initiatives must be well-thought-out to maximize impact. Consider the following best practices for crafting an AI marketing plan:
- Hire data science talent. Big data can overwhelm you. Hire the right people to analyze data so you can properly wield your information, translate it to higher-ups, and make business decisions based on these contexts.
- Maintain data quality. AI marketing is only as good as the data it intakes and analyzes. Increase data fields as needed, pay closer attention to certain ones, and act on findings quickly to determine their role in consumer habits.
- Name metrics. Know your goals and how AI tools can help you realize them. For the best results, start small and grow your efforts over time.
- Practice good privacy standards. Before diving into your AI marketing, ensure your data standards do not cross any legal lines to maintain consumer trust.
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