- In a report from the McKinsey Global Institute, AI and Machine Learning are concluded to be able to produce from $1.4 Trillion and $2.6 Trillion in profit by addressing Marketing and Sales challenges within the next three years.
- In the State of Marketing Report, Salesforce Research pointed out that there is a using boom of AI in terms of marketing between 2018 and 2020, rising from 29 percent in 2018 to 84 percent in 2020.
- Drift mentioned that the future of marketing will be significantly influenced by 5 technologies: AI, Machine Learning, marketing & advertisement technology, voice/chat/digital assistants, and wireless innovation & applications, which was stated in the 2020 Marketing Leadership Benchmark Report.
Chief Marketing Officers (CMOs) and the marketing departments they oversee are supposed to succeed in building customer loyalty, they will use data collected to design an identity that conveys understanding from customers. Providing personalized platform interactions at scale works when CMOs find the right balance among aspects of emotion, logic, and data-driven. For that reason, becoming a CMO today is not an easy task. Compassion and sharp, hard logic analysis are must-have characteristics and you need to know when to use that knowledge and skills. CMOs and their employees try to keep their work’s emotional and rational aspects balanced.
When questioned on how to avoid being overwhelmed from work, an organization CMO of a tech firm told that empathy is always the first step start anything, well-being and protection for consumers and outcomes follow. In another utterance, she talked about her health-and-safety-based strategy to make customers feel secure when using the company’s services, and her company also provides additional services at no charge should they need them. The company literally delivered their latest cybersecurity development upgraded to all clients free in 2020. AI and machine learning platforms enable her and her staff to evaluate, develop and improve an algorithm to build a compassionate identity that makes progress.
Ten ways AI and machine learning are improving marketing in 2021 will be discussed as follows:
When using AI, they found out that the performance of marketing teams was improved to 70% against 35 percent of their under-performing marketing team peers.
CMOs running high-performance marketing teams put a high emphasis on constantly learning and adopting a development mentality, as demonstrated by 56 percent of them intending to use AI and machine learning over the next year. When applying advanced AI and machine learning skills in suitable works, it will bring back better social marketing efficiency and greater accuracy with marketing analytics.
In new research by Advertiser Perceptions, it said that 36 percent of marketers expect AI to have a major effect on marketing success this 2021.
And 32 percent of marketers and agencies were applying AI to develop advertisements, including digital billboards, social media messages, and digital out-of-home ads. This conclusion is from the related article Which Emerging Tech Do Marketers Think Will Most Impact Strategy This Year?
The marketing teams with high-performance are experiencing seven different applications of AI and machine learning recently, and 52 percent expressed their intention of continuing using and applying those supportive tools.
High-performing marketing teams and the CMOs push the others to engage in AI and machine learning to boost consumer segmentation. They focused on customizing individual channel interactions. There are analyses to illustrate how efficiently high-performing marketing teams acquire and implement sophisticated AI and machine learning strategies to their strategic advantage.
AI-based sensors are used by marketers to help forecast unique purchasing trends throughout global regions and avoid stock-outs and back-orders cases.
They use algorithms of controlled machine learning in merging all obtainable datasets, including consumer sentiment classification, enabling to boost customers’ trend detection and accuracy of demand prediction. AI systems use Machine learning to identify location-specific sentiment for a specified product or brand and the availability status of a product in a given region. This application alone will save the retail sector up to $50B a year in obsoleted inventory.
According to “How Disney uses Tableau to visualize its media mix model”, the media mix of Disney is employing advanced AI technology such as machine learning to improve its model.
The first step is collecting data from different sources including its companion to store and alter for a model. In the second step, Disney creates different models for budget optimization and communication efficiency. Then, the results on the effectiveness of the models are compared and analyzed for submission to higher management.
Refer to the 2021 State of Marketing AI Report of Drift, nearly half of marketers claim that AI and machine learning are the most effective tool for their tasks to increase profit and optimizing the working process.
According to marketers, analyzing data to get more useful information from marketing data accounts for 40% and personalization of customer experience accounts for 38% of the three most necessary purposes today. Research also shows that up to 77% of marketers use technology to automate nearly a quarter of their jobs. Only 18% of marketers think that none of their jobs are automated by technology. With normal jobs, marketers often use AI and machine learning to have more time to create new advertising campaigns.
With the real-time system by AI and learning machine to connect the personal experience of the customer, Starbucks is on the track of being the most personalized brand in the world. In the beginning, Starbucks has had great difficulty personalizing the user experience as the amount of customer information stored on the digital platform is insufficient.
Furthermore, thousands of stores in the Starbuck network are still using the traditional way of serving customers, making it even more difficult to use the system on a large scale. To overcome this challenge, Starbucks decided to integrate into the system the customers’ data related to their account, priority, information of other parties, and contextual data. This solution makes Starbucks successful in increasing user interaction by 150% with the system. It illustrated that the technology of predictive analytics and AI can create a dramatic boost in the development in net sales increase per customer. In this process, DigitalBCG (Boston Consulting Group) is a powerful assistant of Starbuck. Source: Becoming The World’s Most Personalized Brand, DigitalBCG.
The combination of large-scale personalization rights with the unity of the Customer Data Platform (CDP) is the premise for the application of machine learning algorithms to find new potential customers and improve the search and analysis capabilities of machine learning.
According to a recent survey on marketing status by Salesforce Research, large-scale personalization is the top priority of large marketing organizations to achieve the best performance. In the prediction of McKinsey, it is suggested that between the total new profit of $1.7 billion and $3 trillion could be created through large-scale personalization. In order to achieve the greatest revenue stream, high technology adoption needs to be accompanied by clear accountability of responsibilities, rights, and results to customers. Doing this will bring many positive results.
For B2C companies, their top three priority plans are to invest in control of programs, focus on mobile application development, and control and optimize workflow.
Currently, the number of companies that have used advanced technology like AI or machine learning to personalize is less than a fifth of the businesses. According to an IBM-commissioned Forrester survey, more than half of businesses agree that personalization would be difficult without the help of technology.
Successful adoption of high-tech for personalization delivers positive results not only in marketing but also in helping businesses thrive.
It helps increase sales, increase Net Promoter Scores and make more customers loyal to the company’s products and services. When the personalization of each customer is completed, the company will get a huge improvement, such as a 5.63% increase in net sales, a 10.26% increase in the frequency of orders, and a 13.25% increase in the average order value. Besides, up-selling and cross-selling additional products to customers have increased demand. Therefore, personalization not only brings great marketing benefits but also increases customer satisfaction with the company.