Modern marketers seek novel approaches to locate and draw in their target market. However, it's becoming more and more difficult to reach your target audience and get results in the fast-paced, always-changing world of digital marketing.
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What Is Marketing Using Artificial Intelligence?
To predict your customers' next step and enhance the customer experience, artificial intelligence marketing (AI Marketing) uses customer data and AI principles like machine learning.
Artificial intelligence developments provide businesses with greater tools to do it. AI may revolutionize how organizations acquire, nurture, and convert prospects and assist firms in creating more successful marketing plans. The illustration below demonstrates how AI and machine learning may be used at each customer lifecycle stage.
Although many people may think of AI in marketing as more science fiction than reality, the technology is already in use. Salesforce reports that just 29% of marketing executives employed AI in 2018, but by 2020, that percentage rose to 84%. According to an estimate from IDC, worldwide investment in artificial intelligence hardware, software, and services will surpass $340 billion by the end of 2021.
Now is the ideal chance to learn more about AI's potential for marketing if you haven't already. We've gathered 10 inspiring examples of artificial intelligence marketing to get you started.
1. Magnolia Market's Online-to-Offline Connectivity
Joanna and Chip Gaines' physical store, Magnolia Market, is renowned for its exceptional customer service. Magnolia's physical location aims to "inspire you to own your environment." To do this, they developed a genuine brand experience that included dining, entertainment, shopping, and a garden.
The team believed that Magnolia Silos' e-commerce business needed to provide the same experience because not everyone could visit them in person. Magnolia collaborated with Shopify Plus to develop a shop and an augmented reality software that lets customers "put" items in their homes and experience them in 3D. Magnolia could portray its items with the greatest level of photorealism imaginable, thanks to AR. The outcomes distinguished Magnolia from the competition and enhanced its e-commerce division, a crucial factor in business expansion.
2. The Copywriting at Chase Achieves More Humanity
Persado, a New York-based business that uses artificial intelligence to create marketing content, and Chase Bank have a five-year agreement. Chase discovered that integrating machine learning in their copywriting helped them attain more humanity in their marketing after trying Persado's solutions.
For instance, one human-written digital advertisement stated: "Access cash from the equity in your property." In contrast, Persado's version stated: "It's true—You may get cash from the equity in your property." With consumers, the later version fared better.
Chase is the first company to utilize this extensive machine-learning copywriting, but other companies want to use Persado's technology more widely. Persado claims the business already collaborates with 250 hotel, banking, and retail marketers.
3. Starbucks Serves Personalized Recommendations Using Predictive Analytics
According to the research company Aberdeen, businesses that use predictive analytics to detect client demands may boost organic revenue by 21% yearly, as opposed to an average of 12% without them.
One example of a company utilizing its mobile app and loyalty card to gather and analyze client data is Starbucks. Plans for personalization were first revealed in 2016.
Since then, they've developed a very impressive app. It keeps track of every purchase's specifics, including where and when. Starbucks processes this data using predictive analytics and provides consumers with tailored marketing communications. These messages advise when a user enters a nearby shop and deals to raise the customer's average order value.
4. Opening of a FashionAI Store by Alibaba
Alibaba, a major retailer, created a real "FashionAI" shop in Hong Kong to improve the efficiency of the fashion retail process. Alibaba outfitted its shops with smart mirrors that show apparel information and recommend matching goods, as well as clever garment tags that recognize when an item is handled. Alibaba also plans to include a virtual wardrobe app in the physical shop, allowing consumers to see the clothes they tried there.
Alibaba uses technology as a reaction to changing customer expectations. 80% of consumers feel that retail technology and innovations have improved their online shopping experience, while 66% say the same about brick-and-mortar retail, according to a National Retail Federation poll.
5. Unilever Assists Ben & Jerry's in Spotting "Ice Cream for Breakfast" Trend
A consumer products corporation, Unilever employs AI data centres worldwide to combine information from many sources, such as social listening, CRM, and conventional marketing research. Through this technology, Unilever identified a connection between ice cream and breakfast: at least 50 songs in the public domain have lyrics that mention eating "ice cream for breakfast," and establishments like Dunkin' Donuts already serve ice cream in the morning.
Using this knowledge, Unilever created a variety of cereal-flavoured ice creams for the Ben & Jerry's brand, including Fruit Loop and Frozen Flakes.
6. Amazon Introduces Personalize
Amazon was a pioneer in providing individualized product suggestions using machine learning. Even yet, the brand has found it difficult to make these features available to businesses who use Amazon Web Services for their websites.
The broad release of Amazon Personalize, which offers AWS clients access to the same machine-learning technology as Amazon.com, was announced by Amazon in June 2019.
Since the original release, the Amazon team has improved its functionality to the point where Personalize can now provide up to 50% better suggestions across various quickly evolving product kinds, such as books, movies, music, and news articles.
Personalize is already being used by brands like Domino's, Yamaha, Subway, and the wedding planner Zola to emphasize musical instruments, offer ingredient and taste suggestions, and create unique style combinations.
7. Chatbots for Sephora
According to Drift's most recent State of Conversational Marketing study, chatbot use increased by 92% between 2019 and 2020, making them the fastest-growing brand communication channel.
An early user of AI was the cosmetics company Sephora. In 2017, they started utilizing a chatbot to provide beauty tips on Kik.
The Sephora chatbot assisted customers in making decisions by asking them about their preferred products. Product preferences are particularly beneficial in the cosmetics sector, where there are many available alternatives, and it might not be easy to purchase without physically evaluating the product. Sephora's chatbot provided insightful information, and the trial generated enough interest for the company to create further chatbots on Messenger.
8. eBay Drives Email Marketing Success with Brand Language Optimization
International e-commerce market eBay is always looking for fresh approaches to engage users. That implies that it has a ton of AI marketing examples to share with us.
The business has been enhancing its marketing text, concentrating on email, since 2016 with the help of the artificial intelligence-powered customer experience platform Phrasee.
Optimizing the effectiveness of email marketing is quite straightforward for the typical brand. A/B tests different subject lines or CTAs to see which is more effective. Then, use it more often. However, things get more difficult for a large corporation like eBay. The US, UK, and Germany alone have over 101 million email subscribers, making it very difficult to create compelling subject lines that can increase open rates.
To relieve its internal staff of the creative load, eBay resorted to Phrasee, which combines deep learning and natural language generation to produce content at scale while constantly enhancing performance.
The computational linguistics team at Phrasee created language models for eBay, enabling the world's largest online retailer to instantly create unique content tailored to its brand tone, consumer demands, and particular promotions.
Since their first collaboration, eBay has seen significant gains in its core email marketing KPIs, including:
- The average open uplift is 16%.
- 700,000+ additional campaign opens
- More than 56,000 more clicks per campaign
- The average click uplift of 31%
9. Tomorrow Sleep Increases Organic Traffic by 100X
Alibaba, eBay, Nike, and BMW. Many businesses discussed in this article are well-known household brands and global enterprises, with marketing expenditures much more than typical businesses.
But as the mattress startup, Tomorrow Sleep has shown, you don't have to be a multibillion-dollar company to use artificial intelligence in marketing.
Tomorrow Sleep was introduced in the middle of 2017; content marketing only began one year later. Although the business knew that increasing organic traffic would be essential to its long-term success, it quickly became clear that its more established competitors had a firm grip on the organic search industry. It had to concentrate on the most significant, intent-driven phrases since it lacked the resources and capacity to produce endless amounts of material.
At that point, it used MarketMuse, an AI-powered platform for content research, intelligence, and writing. MarketMuse first identified the main subjects and subtopics that Tomorrow Sleep needs to write about, after which it examined each main subject's top 20 search results to look for possibilities and gaps.
The outcomes were startling. Within a year, Tomorrow Sleep's organic traffic increased from 4,000 monthly visitors to 400,000 monthly visitors, enabling it not only to outrank much bigger rivals like Casper for important themes.
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10. Marketing AI increases AMA Newsletter Engagement
Working as an American Marketing Association (AMA) marketer can be complicated. When most of your audience consists of marketing professionals, there are better options than sending subpar communications.
Each aspect must be tailored to the demands of each member. But since the AMA covers a wide spectrum of topics, from written content production to UX design, it wasn't easy to meaningfully personalize its email for each of its 100,000+ members.
The AMA utilized an AI engine that generates customized subject lines based on member interest data by collaborating with the artificial intelligence-driven personalization platform rasa.io. This allowed the AMA to highlight the most pertinent and interesting content to each newsletter recipient. Without AI, marketing would be impossible.
The AMA's monthly subscriber engagement rate has increased by an astonishing 42% after partnering with rasa.io. Editor-in-chief Molly Soat stated: "Our readers and members come from various backgrounds, so only some marketing-related items will be relevant to everyone that subscribes. This newsletter's ability to be personalized for specific readers within such a large population is priceless.
Featured image: Image by rawpixel.com
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