Artificial Intelligence Marketing

AI marketing uses various artificial intelligence technologies such as machine learning, deep learning, natural language processing to overcome important marketing challenges. The reason for this is that in our age, mass marketing communication has been replaced by personalized marketing communication. In other words, customers demand a personalised buying experience that is highly relevant to them, personalized messages that are meaningful to them, and a personalized buying experience associated with them, rather than those that appeal to the masses. In our age of personalized customer expectations, mass messages have no function in communication. For this reason, artificial intelligence and machine learning have become critical and necessary tools to improve the marketing journey, enhance customer relationships and drive personalization. Among the brands that use artificial intelligence marketing are giants such as Netflix, Amazon and Google.

Artificial intelligence marketing is the utilization of artificial intelligence to help facilitate the marketing plan in achieving your business’s marketing goals and specific marketing objectives such as customer experience development. In fact, this is a marketing strategy in itself. A bridge is built between the scanning of large data sets and the interpretation and operation, and the work is built on this. It uses artificial intelligence technology to predict the behavior of customers. This helps them provide a better experience for their audience as they recommend the most suitable products or services to the consumer.

The function of large data sets and machine learning platforms is to predict customer trends regarding the topics listed in marketing. The statistics revealed through data shed light on developing insights into the fate of consumer behavior. Thus, it becomes easier to predict the next move of the customer by interpreting their consumption behavior.

Artificial Intelligence Marketing should be perceived holistically and within a process. At every step of this process, a structure built from data begins to emerge. The robustness of this structure again depends on the accuracy of the data. The first stage is the data collection stage. Artificial intelligence algorithms are based on the principle of collecting and interpreting data for marketing campaigns. The data in question may be related to the demographic characteristics that are subject to the marketing plan, or it may be collected on the consumer’s interests, social media behaviours in a certain medium or subject, preferences or similar characteristics. The second stage is the data analysis stage. The data collected in large data sets are analysed by artificial intelligence algorithms at this stage. Thus, the customer’s consumption behavior, consumption attitudes, preferences or other similar characteristics in a certain scope are defined.

Products or services related to customer expectations, needs or demands interpreted by artificial intelligence are provided with a personalized experience. At this point, predictions and forecasts come into play and this is the third stage. The data collected and analyzed through artificial intelligence are used in CRM studies and personalization of marketing campaigns. Businesses can make future sales forecasts by analyzing customer behavior and trends through artificial intelligence.

While artificial intelligence means many tools and technologies that can be used in the development and management of marketing campaigns, artificial intelligence marketing strategies require the use of the right data on the road to success. AI-based marketing is an experimental and iterative process. To determine whether to change their approach, marketing teams should define narrow goals instead of big goals, proceed step by step, and measure analytics for each step. The process can be reshaped with guidance in line with the measurements.

Artificial intelligence marketing greatly enables a better customer experience for the target audience. It increases the success performance of areas such as the website, social media accounts of the business or brand. This technology can also predict how your customers will behave and identify concepts and themes in the data. This supports creating a better marketing plan tailored to customers.

AI marketing is a valuable way to improve a marketing campaign, and there are numerous benefits to investing in this area, including:

Sales Forecasting: Data-driven sales forecasting means businesses can plan stock more efficiently. In this way, businesses can also make better decisions about offering their products to consumers at appropriate times.

Chatbots: When artificial intelligence-based chatbots are used to serve customers quickly and effectively, they quickly respond to customer inquiries and offer special attention and accurate support. This means increasing customer satisfaction.

Testing and Optimization: Artificial intelligence can be used to measure and interpret the impact of marketing campaigns and optimise or revise planning accordingly. This enables businesses to achieve better results, as well as guiding subsequent campaigns.

Less cost: AI can reduce costs for businesses by enabling marketing campaigns to be managed more effectively, relieving the burden on marketing professionals and allowing them to spend more time on more productive work. For example, AI-based tools such as chatbots can reduce customer service costs by meaning fewer employees.

Competitive Advantage: With these technologies that can read data sets faster and more efficiently than a human, changes can be made on the fly that can make the campaign work better. In this way, it contributes to the business to take a step ahead of the competition.

Identifying and Eliminating Barriers: This technology helps to identify key areas to focus on and problem areas. It is easily understood which parts of the campaign need to be organised to better reach and convert the target audience or subgroups. Compared to competitors who don’t have this privilege, you’ll be faster at identifying and fixing issues, which is a great way to stay ahead of the competition and improve performance.

Content Optimisation: Content is a smart solution that makes the digital presence of the business more qualified and helps it to obtain valuable leads. Artificial intelligence marketing makes this solution more efficient.

Individual Customer Experience: Artificial intelligence marketing means processing and interpreting data on individual people and their experiences, which greatly supports the increase in customer satisfaction as customers encounter a more individualised experience.

Target Audience Analysis: With the help of artificial intelligence in identifying potential customers or existing customers, it becomes much easier to benefit from the power of data and to analyse target audience subgroups. In this way, it can be easier to prepare creative solutions in strategic planning according to the various data-based characteristics of different target audience groups and the course of the campaign becomes healthier. With artificial intelligence marketing, businesses can analyse customer preferences and offer tailor-made recommendations suitable for customers. In addition, artificial intelligence can predict customer spending patterns, conduct market research, and assist customers in real time when live agents are not available.

Higher Conversion Rates: AI can be used to create more effective marketing campaigns by analysing customer behaviour. This enables products or services to be offered that are more relevant to customers’ interests and needs and can ultimately lead to higher conversion rates. For this reason, it should be preferred as an element that indirectly contributes to corporate reputation in the long term.

Artificial intelligence marketing is used by many big brands. Here are some examples of brands using artificial intelligence marketing:

Amazon: Amazon developed the “suggestion” system to personalise shopping experiences by analysing customer behaviour using artificial intelligence.

Coca-Cola: Coca-Cola uses artificial intelligence to analyse data to improve customer experience and develop effective marketing strategies.

Netflix: Netflix uses artificial intelligence to recommend movies and TV series based on users’ interests and helps to produce new content by analysing users’ viewing habits. Thus, based on data, more popular TV series and films are identified; TV series and films with parallel dynamics are produced according to customer expectations and trends.

Sephora: Sephora uses artificial intelligence to offer personalised product recommendations using information such as skin tone and colour, encouraging the consumer to have a personalised experience.

Starbucks: Starbucks developed a mobile application to take customers’ orders faster and more accurately and to facilitate the digital transformation of orders into data. Apart from Starbucks, some other coffee chain brands have also switched to similar applications. In these applications, gifts are given for a certain amount of shopping and usage is encouraged.

Spotify: Spotify uses artificial intelligence to analyse customers’ music listening habits and offers personalised music lists and recommendations.

In addition to these brands, many other big brands are preparing innovative solutions and useful marketing campaigns to improve customer experiences by using artificial intelligence marketing. Thus, businesses are analysing data and making automated decisions to develop more effective marketing strategies to reap the fruits of their investments in this area. On the other hand, although artificial intelligence marketing, which businesses may prefer for its advantages, provides many benefits to the business in the field of marketing, it may also cause some disadvantages for businesses. For example; It is costly for small businesses as technology. It may carry data security risks and requires precautions in this sense. On the other hand, there may be deviations in the predictions of artificial intelligence based on customer data, which may create errors in predictions. Some customers may prefer to communicate with a real person instead of communicating with artificial intelligence, in which case customer satisfaction may be negatively affected. Since artificial intelligence technology requires a learning process, it means extra effort and time cost for businesses to train trained personnel to be employed in this field. For these reasons, businesses should work with experts in artificial intelligence marketing applications and understand the potential risks well. Businesses need to maintain certain balances in marketing with expert support to improve customer experience and develop more effective marketing strategies by making the best use of artificial intelligence technology.