Artificial intelligence is reshaping almost all the aspects of doing business, from finance to sales and R&D to operations. Its most profound impact is, however, being witnessed in the field of marketing where not only it has already created great value but experts predict it is going to change the future of marketing massively. In this article we will explore how this branch of knowledge that is based on cognitive technologies and replication of human intelligence in machines is going to transform the marketing strategies.
The transformation of marketing by AI has already begun. Using algorithms, handling an extremely huge amount of data, and excellent analytical techniques, the businesses are now adopting customer-centric marketing strategies to communicate with the targeted and segmented audience in an intelligent manner. The fashion industry is a case in point where marketing today is immersive, interactive, and is thus providing customers a cutting-edge shopping industry.
How will AI transform marketing in future?
The marketing transformation is long overdue as it is still using the old playbook using communication with all. The AI’s machine learning is however bound to humanize marketing. Here is what changes it will create in the future.
- Marketers will be aided by Strong predictive ability: Using conversational assistance, marketers will be able to dig deep into customers’ needs and ongoing trends and therefore will be capable to predict future trends more accurately.
- AI will help marketers adopt Hyper-personalized strategies. Hyper personalization is the future of marketing because of its ability to leverage real-time data and AI, in order to deliver the relevant content and products /services. The great majority of marketing professionals acknowledge its need. According to the Ascend2 research report, 86% of the marketing professionals surveyed, consider the effectiveness of an AI-powered hyper-personalization strategy to be changing for the better. Source: Convinceandconvert.com
AI, using its powerful data analytical techniques will help marketers to adopt highly personalized marketing strategies focusing on dynamic engagement. This will create immense value addition and providing great competitive advantages to the businesses.
- AR and VR will be in great demand by marketers: Both of these innovative technologies are still new and are untapped to a great extent. In the future, however, both will be supreme in the arena of digital marketing because both have the potential to become the next big computing platforms. According to a Goldman Sachs Global Investment report, the global market for VR and AR in retail will reach USD 1.6 billion by 2025.AR and VR will become pillars of experiential marketing (Marketing strategy that engages the audience to interact in real-world scenarios with business). According to Tom Felix La vecchia
- The chatbot will provide complete customer service: There are many ways in which “AI is revolutionizing the fashion industry. However, its biggest impact is being observed on customer service. Brands like Tommy Hilfiger, Burberry, and Sephora are using chatbots as a supporting feature to their websites. Presently, however, Chabot greets customers, know their preference and shows them a variety of options. The customers may then make their choice. The chatbot presently functions as an initial navigational menu. But this will not be the case in the future. Going forward, this conversational agent will provide 24/7 interaction with customers in all languages and in all time zones.
- Great integration of AI into email and SMS marketing strategy: Email marketing is here to stay. According to Statista, there were 3.9 billion global users in 2019, and in 2023 this figure is set to grow to 4.3 billion. (Oberlo)AI is reshaping email marketing and SMS messaging and has great potential for these areas in the future as well. We all know that AI is revamping the fashion industry. Machine learning is therefore being used to enhance conversions and customer retention through restructuring email marketing via improved deliverability, creating smart newsletters, and speeding sends times.
Take the example of acquiring new customers by offering coupons and promo codes for discounts. This is a risky strategy because many customers often don’t return after availing of a discount via coupons. The fashion industry has used the immense data analytical power of AI to predict which customers will come back using purchase histories. In the area of SMS messaging AI has helped the fashion industry to send information about coupons, special offers, and promo codes at the very right time.
Based on the capitalization of big data and strong analytics of AI, the email marketing strategy may transform in following ways;
- Provide businesses the analysis of email marketing campaigns and their impact in detail.
- Provide an effective email retargeting mechanism to approach customers that have shown interest.
- Smart Product searching: Ever since Google incorporated an AI-based Algorithm in its search engine back in 2015 through Rank Brain, more and more companies are going for AI-powered search engines like Amazon and Microsoft. The companies are using AI applications in their search engines for quality control (getting rid of the low-quality spam) and creating ranking algorithms. In future AI is going to change Searching products and services in following ways;
- Visual search will replace text-based searching in the future (though not completely). Ben Silbermann, the CEO of Pinterest stated “The future of search will be about pictures rather than keywords”
- AI will help to make the search results more individualized providing search marketers a definite edge.
- We will see more real-time updates and adaptability in algorithms as AI systems will make intelligent use of real-time analytics.
- With the rise of NPL (Natural language processing) and visual search, Ai will help marketers to influence customers buying decisions making.
- Automated content creation: This is yet another area where AI will help marketers immensely. Businesses are paying attention to this future as many AI-based content automation tools are now replacing the content writers. The beverage giant Coca-cola for instance is using this to automate its advertising narratives.
In the future, its effectiveness in generating ROI driven content through AI-powered content wring platforms and keyword research tools will make the marketers relieved because they will get rid of conventional content that is largely repetitive and manual. Moreover, the combination of modern content service platforms and AI will bring structural changes in content creation as they will create business-specific content based on their huge capability to enrich metadata.
The AI-based applications have a promising future and they will create a very positive impact on marketing in terms of efficiency, customer satisfaction, speed, problem-solving and decision making. This in turn will enhance brand loyalty and generate hefty revenues for businesses.