Artificial intelligence deals with using computers to understand human intelligence, and it is the science of making intelligent machines, especially intelligent computer programs. It refers to adding human capabilities into machines.
How AI Transforms Marketing for the better?
Let us look at some of the areas in which AI is incorporated in marketing.
AI has a profound impact on the manner in which we search and the quality of the search results that define the search experience. Google first innovated with AI in search in 2015 by introducing its machine learning-based algorithm, RankBrain. From that time onwards, many e-commerce websites have followed Google’s footsteps and incorporated AI into search engines to help make product searching smarter. Innovations such as semantic search and natural language processing help search engines determine the links between products and provide similar product suggestions, find relevant search results, and autocorrect mistakes, thus aiding customers in discovering products even if they do not have a clear idea of what they are looking for.
Demand-based price changes are not new. A perfect example of this is the change in hotel room rates based on seasons. Using AI in marketing will help determine and optimize prices with a whole new level of precision by taking into account a wide variety of data. AI and machine learning are used to analyze a customer’s data patterns, predict their receptiveness to special offers, and the price they would be willing to pay. This helps businesses target customers with more precision and helps them calculate the exact discount needed to pull in a sale. Businesses can use dynamic pricing to determine if their pricing of products is too high, too low, or almost at the same range in comparison with their competitors.
Airbnb is a perfect example of a dynamic pricing system that helps property owners determine the price at which their property must be listed. It takes into consideration a wide array of factors such as local events, geographic location, photographs, reviews, time to the booking date, and market demand. Using these calculations, marketers can provide which the users will choose to follow or ignore. The system will then adjust the algorithm based on the results.
Audience Targeting and Segmentation
To reach out to customers with a proper level of personalization, marketers need to target increasingly granular segments. AI can help achieve this. Based on the data that marketers already have regarding customers, machine learning algorithms can be trained against a gold standard training set to pick out incorrectly identified contacts and identify common properties and important variables. The amount of customer segmentation that can be done by marketers depends on the data they have. Segmentation can be based on past behaviors and buying personas, or it can be as simple as gender and age.
Segmentation is not limited to just being static. Dynamic Segmentation is an application of artificial intelligence that consumer behaviors are rarely unchanging or fixed and people can take on different personas for different reasons at different times.
AI has the ability to eventually transform the economy and reshape most businesses by introducing new products and business models.If you are interested to know more about artificial intelligence certifications, check out Global Tech Council.