AI Marketing 101: What you need to know

AI is here to stay. It is being used by industries everywhere – whether we see it or not. Marketers continue to use AI technology to deliver innovative customer experiences and value.

But first, let’s define AI Marketing. Artificial intelligence (AI) marketing is the process of leveraging AI methods and tools such as data models, algorithms, and machine learning to produce customer insights that marketers can use to optimize spending, customize content and personalize the customer journey.

Some of the benefits are:

Boosted performance and ROI of digital marketing campaigns
Smarter ads with better targeting
Understand customers and pinpoint key areas to focus marketing strategies
Personalize content to better reach audiences
Improve customer service and engagement

Now, let’s look at AI marketing in action!

1. Starbucks
With the help of AI technology, Starbucks can predict when app users are going to make their next order. The Starbuck app records purchases, retrieving information that includes store location, time, and specific orders. With this data, their marketing team can deliver more personalized, tailored messages to customers such as recommendations based on past orders, special offers, or promotions.

2. Sephora
Finding a new makeup or skincare product can be an overwhelming experience, especially with a plethora of options and brands to choose from. So, Sephora adopted chatbot technology to reach its customers and provide them with specific recommendations. Then, with the information gathered from the chatbot technology, their marketing team sends out personalized emails to interested and engaged customers that will better lead to a conversion.

For example, if you are looking for a cleanser for sensitive skin, you ask the Sephora chatbot for recommendations. A few days go by and you have not made a purchase yet, so Sephora’s marketing automation technology sends you a follow-up email reminding you of your options. In addition, if you are a member of their loyalty program, you will receive additional recommendations based on your purchases.

3. eBay
With eBay’s millions of email subscribers, it can be challenging to develop eye-catching subject lines that engage with each individual customer. So, they use machine learning to generate targeted subject lines that don’t trigger spam filters. Thanks to this tactic, eBay saw a 15.8% increase in open rates, a 31.2% increase in average clicks, over 700,000 incremental opens per campaign, and over 56,000 incremental clicks per campaign.

Adopting any new technology can be daunting, but with the help of AI, companies can see improvements in their marketing tactics and better ROI.

By Kayla, Account Manager & Strategist | September 19, 2022

Sources:
https://www.cognizant.com/us/en/glossary/ai-marketing
https://www.searchenginejournal.com/machine-learning-examples/451881/
https://blogs.oracle.com/marketingcloud/post/ai-in-marketing