Understanding AI and Its Applications in Marketing

Imagine having the ability to predict your customer's next move, tailor your messaging to each individual's preferences, and automate time-consuming tasks all while improving your campaign's ROI. Welcome to the world of artificial intelligence (AI) in marketing. AI is a powerful tool that is revolutionising the way businesses connect with their audiences. From analysing vast amounts of data to delivering personalised experiences at scale, AI is empowering marketers to achieve unprecedented levels of efficiency and effectiveness. In this blog, we'll explore the many applications of AI in marketing and how it can transform your strategies for greater success.

AI in marketing refers to the use of artificial intelligence technologies to enhance and automate various marketing processes. These technologies include machine learning, natural language processing (NLP), computer vision, and predictive analytics. AI enables marketers to analyse vast amounts of data, predict consumer behaviour, and deliver personalised experiences at scale.

AI helps marketers by increasing efficiency, improving accuracy, and enabling data-driven decision-making. It automates tiresome tasks, such as data entry and analysis, freeing up marketers to focus on strategy and creativity. AI also provides valuable insights that help in targeting the right audience with the right message at the right time, leading to better campaign performance and higher ROI. Finally, AI can help you to be a better you, if you combine your knowledge of the business, service, product and customer and initial thoughts with the speed and power of options with an AI tool like ChatGPT, or Jasper... you can deliver better end results, a lot faster and more consistently.

AI can analyse customer data to deliver highly personalised experiences. For example, AI algorithms can recommend products based on a customer’s browsing history and past purchases. Netflix and Amazon use AI to suggest movies and products that users are likely to enjoy, enhancing the user experience and driving sales.

AI tools can generate content for marketing purposes. Specialised marketing content platforms like Copy.ai,  and Jasper or a generic one like ChatGPT, use AI to create blog posts, social media updates, and email copy. This not only saves time but also ensures consistency and relevance in messaging.

AI can segment customers based on various criteria such as demographics, behaviour, and purchase history. This allows marketers to create more targeted and effective campaigns. For instance, a small retail business can use AI to segment its customers and tailor promotions to different groups, increasing engagement and conversion rates.

AI uses predictive analytics to forecast future trends and customer behaviour. Marketers can use these insights to optimise their strategies and stay ahead of the competition. For example, a fashion retailer can predict upcoming trends and stock up on popular items, ensuring they meet customer demand.

AI-powered chatbots can handle customer inquiries 24/7, providing instant responses and support. This improves customer satisfaction and frees up human agents to handle more complex issues. You can even train it over time to give better and better responses - making it a more invaluable tool for your business, team and customers alike.  Any small businesses, such as retailers, blind manufacturers, local cafes or boutiques, can use chatbots to manage customer interactions efficiently.  In fact 33% of all Australian small businesses are already using AI Chatbots for customer.  And that figure is only going to rise massively over time .

AI can optimise email marketing campaigns by determining the best time to send emails, personalising content, and segmenting audiences. Tools like Mailchimp use AI to improve open rates and engagement by tailoring emails to individual preferences.

AI tools can analyse social media data to provide insights on customer sentiment, engagement, and trends. This helps marketers create more effective social media strategies. Small businesses can use AI-powered tools like Hootsuite to schedule posts, track performance, and engage with their audience in real time.

With the rise of smart speakers and voice assistants, optimising for voice search has become crucial. AI helps marketers understand and predict voice search queries, enabling them to create content that ranks well for spoken questions. Businesses can use AI to ensure their information is easily accessible via voice search, enhancing visibility.

AI can analyse customer reviews, social media posts, and other text data to gauge public sentiment towards a brand or product. This helps marketers understand consumer perceptions and address any negative feedback promptly. Tools like Brandwatch and Sprout Social use AI for sentiment analysis, providing valuable insights into customer opinions.

AI algorithms can adjust pricing in real time based on demand, competition, and other factors. This ensures businesses remain competitive while maximising profits. E-commerce platforms like Amazon use dynamic pricing to stay ahead in the market.

Strategy: Upload a spreadsheet of past email campaigns to ChatGPT to analyse open rates, most popular times, days, and subject line trends.

Example Prompt: "ChatGBT, analyse the attached spreadsheet of past email campaigns and identify the best day and time to send the campaigns. Then identify any common trends with subject lines that get the most opens, and determine which link descriptions got the most click-throughs."

A top tip for getting more in-depth content from your boss or expert in your business is to interview them—a lot faster than asking them to write up a list of bullet points for you to expand on.

Strategy: Interview your boss or an expert within your business about a topic you want to write about. Use ChatGPT to help draft interview questions focusing on the topic, audience, and objectives.

Example Prompt: "ChatGBT, what key challenges do our customers face with [product/service]? What unique solutions do we offer?"

Record the interview using tools like Hangouts or Teams to get a transcript. Upload the transcript to ChatGPT to create content.

Implementation: "Read the following transcript and summarise the key points covered." "Focusing on this area (point) of the transcript, write me a minimum 1200-word blog for a target audience of (outline), with headers and good bullet points, in UK English." Once you are happy and have inputted your own thoughts: "Read this final blog post and generate three teaser posts for social media and newsletters."

Strategy: Use Google's Gemini or ChatGPT to research a topic and provide a summary with links to the latest information.

Example Prompt: "ChatGPT, research the latest trends in AI for small business marketing from the past 12 months and summarise the key points with source links."

Strategy: Find the top searched phrases around a particular topic to help you work out what future content you will write to attract your target market and improve search engine rankings.

Example Prompt: "Gemini, research the internet for the last 12 months to find out what are the most popular searches on Google done for this particular topic for this market - give me the search terms in order of most popular."

Strategy: Use Google's Gemini to generate blog ideas around the above results (top keyword phrases) for a particular market, addressing specific challenges.

Example Prompt: "ChatGPT, based on these popular searches, suggest at least five blog ideas for small businesses in the retail sector struggling with customer retention."

Stitch Fix, an online personal styling service, uses AI to personalise clothing recommendations for its customers. By analysing customer preferences, purchase history, and feedback, AI helps the company curate outfits that match individual styles. This personalised approach has significantly improved customer satisfaction and retention.

See this in action: Stitch Fix.

Sephora, a leading beauty retailer, leverages AI-powered predictive analytics to forecast customer demand and optimise inventory management. By predicting which products will be popular, Sephora ensures that they always have the right stock levels, reducing waste and improving sales.

View their website: Sephora.

As AI technology continues to evolve, its applications in marketing will only expand. Emerging trends such as voice search optimisation, visual search, and augmented reality are set to revolutionise how businesses engage with customers. AI will play a crucial role in these advancements, providing even more opportunities for marketers to innovate and drive growth.

AI is transforming the marketing landscape by enabling businesses to work more efficiently, personalise customer experiences, and make data-driven decisions. By embracing AI technologies, marketers can stay competitive in a rapidly changing digital world. Start exploring AI solutions today to supercharge your marketing efforts and achieve unprecedented success. For more insights and customised AI strategies, contact our experts.