Artificial intelligence is a branch of computer science that deals with the simulation of intelligent human behavior by machines. With the help of machine learning and predictive analysis, AI-led machines have started to act more like humans in order to understand their needs and requirements.
AI has been used to power marketing strategies in a wide range of industries. From content creation to advertising and product recommendations, AI has advanced the marketing world by leaps and bounds.
The digital world has brought about a lot of changes in the way we live our lives. Technology has made a number of things easier, and marketing is no exception. Targeted marketing is a key element of successful online marketing. It helps your business build a better brand, increase conversion rates and improve customer experience. But it also requires a significant amount of upfront work to properly segment your audience and craft the right message for each group.
The significance of this can be gauged from the fact that today’s marketing strategies are no longer limited by the facts at hand, but can be greatly influenced by statistics that have become more easily available with the help of artificial intelligence.
Segmentation
There are many ways to segment your target market. A common approach is to use demographic characteristics (education, country of origin, income and so on) to divide your target market into distinct groups. However, this can be very time-consuming, especially if you have a large number of target customers.
This is where Machine Learning comes in handy. It allows you to create more detailed segments by combining demographic characteristics with other factors that you have identified through customer research and existing customer data.
Targeting
Once segmentation of the audience is done, AI-led machines target segmented groups of customers in order to reach out to them separately. Targeting involves creating separate advertisements and campaigning products in distinct ways to market a product or a service in a better way.
Using AI helps marketers understand their audience better and target them accordingly. This helps marketers make use of the correct marketing channel, target specific users with customized ads, and also make use of appropriate content for different users.
AI can also help marketers track their audience’s behavior across multiple channels, which helps in understanding their target audience better and creating specific content for them. For e-commerce companies, AI can help identify potential buyers and navigate the best approach to sell the product or service based on the customer’s background and behavioral pattern.
Positioning
Your company’s positioning is the story that will help your prospects, employees, and investors connect with your product idea. The goal of positioning is to identify and attempt to “own” a marketing niche for a brand, product, or service using various strategies including pricing, promotions, distribution, packaging, and competition in order to influence perception in the market. Such an endeavor relies on qualitative research based either on surveys and focus groups or on various forms of SWOT analysis.
Positioning involves a specific category of AI, namely the “feeling AI” which is designed for two-way interactions involving humans, and/or for analyzing human feelings and emotions. Since we do not have true feeling AI yet, emotions are coded and data is fed to AI algorithms along with other contextual, individual-specific data. The results returned by the AI modeling are characterized by a high degree of accuracy, leading to highly effective positioning assessment and strategies.
While there are plenty of ways marketers and businesses can use AI to improve their online marketing efforts, the targeting aspect seems like the most promising. By better understanding your audience based on the data available to you, you can garner a much clearer picture of where your business needs to go in order to better reach them, which can ultimately mean more sales and higher profits.