Data science has been here for a long time. But it has gained immense popularity after the advent of artificial intelligence.
With its ability to sort and analyze data and extract meaningful information in real-time, AI has boosted the inherent value of data and the need for data science.
And this convergence of AI and data science has triggered the 21st-century technological evolution.
Modern businesses are harnessing the potential of AI-driven data science and boosting their growth. From sales to customer service, production to supply chain, there is not one aspect of business that AI is yet to uplift.
One of these aspects that harnesses AI’s potential to improve the business bottom line is marketing.
Business marketing has benefited immensely from AI and data analytics.
In this article, we will take a look at AI from a marketing perspective.
Benefits of Data Science and AI in Marketing
Stakeholders have long been skeptical of marketing. With expensive marketing investments and difficult-to-track campaign ROI, marketers have struggled to demonstrate the value of their efforts to the business leaders.
But with AI-driven marketing tools and data analytics, things are starting to look up.
Here are the top benefits of the integration of AI in marketing:
Increased Business Conversions
78% of customers claim that personalized content enhances their purchase intent, which is probably why marketers experience a 56% increase in sales when they offer personalized experiences.
If it weren’t for AI and advanced data analytics, there wouldn’t have been any appreciable personalization.
Businesses now adapt their content according to the likes and dislikes of their target audience with the help of data analytics.
With advanced audience segmentation, data science and AI help businesses divide their target audience into segments. Then they target each of these segments with content that resonates with them the most, eliciting an action out of them and potentially enhancing conversions.
Marketers now know exactly what their customer’s preferences are, thanks to data. And with the help of AI, they make sure that their customers are targeted with content promoting the products they like, which directly impacts sales.
Additionally, machine learning has led to the advent of personalized recommendations. Established e-tailers and relatively smaller businesses now give their customers product suggestions based on their buying history and search trends, increasing conversions and revenue by uplifting individual order value.
With AI and data science, businesses can now align their content delivery to where their customers are in their journey. This means a customer close to conversion is shown ads and content that pushes them through the sales funnel. On the other hand, a prospect on the verge of attrition is exposed to re-engagement content, so the business has another opportunity to win them as customers.
Such granular personalization empowers businesses to ensure that not even a single sales opportunity is missed.
Predictive Lead Scoring - Better Allocation of Resources
Gone are the days when marketers used to fill the sales pipelines with random leads.
Predictive marketing analytics has given way to a new era of lead scoring.
Predictive lead scoring considers historical data and uses predictive intelligence to assign scores to leads. AI then organizes these leads in the order of likelihood of conversion.
The sales teams then interact with the hottest, most qualified leads and invest their efforts in people who have a higher propensity for conversion.
With predictive lead scoring, a business’s resources are spent where they are more likely to generate a higher ROI.
Additionally, by prioritizing qualified leads, marketers are able to know exactly who to target with personalized messages to get them through the funnel, which enhances the lead closure rate and contributes to the business's bottom line.
Enhances customer satisfaction
The modern customer has more choices than ever before. And customer satisfaction can be the sole differentiating factor between two competitors.
With almost 64% of customers expecting tailored engagements based on their past interactions, personalization is imperative for enhanced customer satisfaction.
Personalization stems from data, and data is analyzed accurately through AI-driven technologies.
AI-powered data analysis uncovers customer search trends, shifting your marketing approach to show tailored ads to the customers. This helps people find what they want without searching for it and increases their satisfaction with the brand.
Natural Language Processing, a product of AI, helps you understand your audience's sentiments so you can tailor your tone and message accordingly.
Moreover, data analytics helps you understand your customers better and resolve their issues in the best way possible.
When talking about AI for business, we cannot ignore chatbots.
Thanks to machine learning, modern chatbots are capable of communicating almost like humans, catering to your customers in their time of need without making them wait for a human to respond.
From human-like chatbots to tailored communications, AI eliminates assumptions, uplifts customer satisfaction, and helps you gain a competitive edge with world-class customer support.
Marketing Campaign Optimization
Data analytics helps you derive meaningful conclusions from your campaign data, which helps marketing stakeholders make profitable decisions about future campaigns.
AI-powered analytics dashboards help marketers see what’s working and what’s not. Using this data, they can adjust their campaign in real-time to ensure optimum results.
The predictive nature of AI-powered analytics helps marketers plan their campaigns according to future trends and eliminate potentially expensive assumptions.
From choosing the right type of content to selecting the right platform, AI-augmented data science influences all marketing decisions and optimizes marketing campaigns to provide maximum ROI.
Marketing Automation – Optimized Workflows
Effective marketing is lined up with tedious tasks. Publishing content, tracking metrics, and analyzing campaign results can be extremely time-consuming and laborious.
Marketing automation is supplemented by data and modern AI tools which automate the traditionally tedious tasks, freeing up time for brainstorming and strategizing.
Staying active is a critical part of a successful marketing campaign. From posting content on social media to reply to comments on business blogs, AI-powered tools take care of everything, saving you from spending time on such monotonous tasks, and building your online community.
You can now automate your emails using AI-powered tools. And with data analytics and marketing automation, send personalized emails to people based on their interactions with the brand.
For example, a person signing up for a free trial receives a welcome email. While someone opting out of the brand receives a re-engagement email.
Additionally, AI-driven analytic tools automate marketing data analysis and present results in real-time, much quicker than humans do. These tools automatically collect data, analyze it, and present it in neat reports, which are much easier to read and derive insights from than manually looking into metrics and deriving results.
Artificial intelligence optimizes workflows by taking responsibility for such monotonous work. It also enhances workplace efficiency and frees up the workforce for more meaningful tasks by enabling automation.
How Companies Are Using AI to Grow their Business
Some of the top names in the business sector have pioneered the incorporation of AI in business. And in doing so, they have innovated their way to the top.
Below are some of the top companies that are using AI and data science to supplement their business growth:
Amazon is known as the pioneer of online shopping recommendations. It was among the first e-commerce businesses to deploy historical data analysis, customer behavior, and search trends to predict what a buyer might be interested in.
The fortune 100 company also deploys AI-enabled dynamic pricing to boost its revenue.
When talking about Amazon’s AI innovations, how can one forget to mention Alexa? The technology pioneer’s voice assistant has made voice search ubiquitous and improved search experience for people.
Amazon’s latest AI-powered project, which is yet to launch on a larger scale, is the Amazon Go, the human-free store.
Amazon Go uses AI to track what anyone has picked up and charges them on the AmazonGo App, revolutionizing the way people shop, once again.
Starbucks is the shining example of businesses growing by early and smart adoption of modern technologies.
The coffee brand collects customer data, such as beverage preferences, buying time, and location, and deploys AI to offer personalized recommendations.
It uses time and location data to send tailored offers to the usual customers when they are getting close to the local store to increase their order value.
Facebook has the majority of revenue coming from advertisements and 2.14 billion people can be reached via Facebook Ads. They have been among the early adopters of AI but have also contributed immensely to its research and development.
Facebook uses its user’s data from within and outside the platform and deploys machine learning to offer tailored ads. This feature has got the social media giant in some hot waters. But it is extremely profitable from a business perspective as it enhances conversions.
Facebook’s DeepText technology uses artificial intelligence to understand what is being said on the platform. Besides understanding the context, the platform’s bots can also understand different languages, making the platform more inclusive for the multi-linguistic audience.
Moreover, Facebook is actively enhancing its AI resources to control the propagation of fake news and eliminate misinformation. This endeavor is effectively removing hurdles in its growth.
Smart use of AI and data science has orchestrated Facebook’s success. And their interest in AI is evident of further data-driven growth in the future.
Google also ranks among the innovators of modern AI. It is using artificial intelligence in optimizing search, enhancing user experience, and many other areas.
While still far from becoming as popular as the competitor, Google's self-driving car uses AI to navigate roads and maps.
The search engine giant’s voice recognition is revolutionizing conventional search, not to forget, Google’s personal assistant and Google home, both of which are a product of its innovations in AI.
Moreover, Google’s achievements in language translation are commendable. It deploys neural machine translation, which is based on an artificial neural network, for linguistic translations and is eons ahead of all its competitors in translation.
Netflix has hitched a ride on AI’s back and grown to be a multi-billion dollar industry.
Netflix deploys machine learning for their algorithm, much like Facebook, and uses their subscriber’s watching preferences and history to offer tailored watching suggestions.
Their advanced recommendation system has played a pivotal role in their success. According to statistics, 80% of TV shows people watch on the platform are because of what is recommended to them through the AI-powered recommendation system.
The Future of AI in Marketing
AI has a bright scope in marketing.
Many marketing agencies are already ramping up their investments in data science and artificial intelligence.
80% of marketers believe AI will revolutionize the entire marketing industry in the next five years. With the way things look, it is evident that businesses that will neglect or delay the adoption of AI-driven technologies will have a competitive disadvantage.
AI has already led the evolution of numerous areas of marketing, all of which we have discussed in this article.
However, there are some other marketing areas where AI and data science are yet to make a significant impact.
The creative fields of marketing, like content writing, photography, videography, and graphic designing, though largely supplemented by AI-powered tools, still require human effort. But that’s not to say AI is not making advancements in these fields.
In the future, we can expect AI developments along the creative avenue, which has already begun. Journalism tycoons like The Washington Post and BBC already use AI-bots to create stories for them, which are then reviewed and edited by human writers.
We may see content marketers opting for AI-powered writing and editing tools to help create content.
Augmented and virtual reality has already entered the marketing landscape. We will see more and more brands adopting AR in innovative, out-of-the-box marketing campaigns in the near future.
Finally, voice search is gaining popularity. And with the help of search engines’ artificial intelligence, people are using voice search in their native languages. This means the future will see businesses investing increasingly towards multilingual SEO for voice search to gain visibility.
AI has revolutionized marketing in more ways than one. But certain shortcomings have restricted its growth. In the future, we can see AI experts addressing these flaws and innovating newer avenues in AI-supported marketing.