"Ai'll be back"

Have you ever watched The Terminator and were afraid that robots and machines would take over – well I definitely was. But, guess what, they are taking over, but they’re friendly I swear - It’s more Arnold and less T-1000. See, a PwC survey in November 2023 found that 86% of the 1,000 businesses across nine sectors plan to make Artificial Intelligence (AI) implementation mainstream with Machine Learning (ML) expected to contribute $15 trillion to the global economy by 2030. So, there is value in incorporating ML but if you’re unsure of how to do so, then take a look below and see how you can make your marketing efforts more efficient.

Customer Segmentation

Firstly, ML is a great way to redesign customer segmentation as it allows you to automatically segment thousands of customers on a whole host of metrics in seconds. No longer do you have to hire a poor intern to sift through hours of data and make him work overtime to manually do this.

Also, ML helps you see who your high-value clients are and what characteristics they possess to hone your marketing strategy. For example, ML can calculate the LTV of all your customers and help you decide which segment to focus on to meet your KPIs. So, at least now you don’t have to keep advertising to the person who calls and wastes the time of your customer service agents every day.

You can then develop personalized marketing campaigns for these customers as it can increase the rate of conversion and boost your relationship with the customer – and it shows that you care. Don’t just take our advice, JPMorgan, amongst other companies, uses ML to develop targeted marketing emails and advertisements daily.

CapitalOne is another example as they used ML to easily identify groups based on how long they’ve been a customer, how many cards they have, and how they heard about the company. Go ahead, get an extra card from CapitalOne, and see how advertisements targeted to you change.

Relevant Advertising

After segmenting these customers, ML-based systems can create models that evaluate the ideal product for each segment and then advertise similar products to increase repeat purchases and customer interaction. Stitch Fix, the clothing brand, uses ML to determine what products are popular at various locations, and then match the most relevant outfits to each customer base, allowing them to restock their inventory most efficiently.

Netflix is another example, as they use ML to personalize viewer recommendations by building a model that incorporates a customer’s viewing history, information on all movies and shows, and data on when a customer is active on the platform. It’s so effective that it’s approximated to drive “80 percent hours of content streamed on the platform”. See, it's not my fault that I’m addicted to watching True Crime documentaries on Netflix.

Customer Service

Another way you can implement ML is through ChatBots. These bots are trained to deconstruct customer queries by asking a set of questions and finding keywords that will help them provide the most relevant and helpful answer. Save your money on hiring call centers and hoping that these agents provide your customers with the right information.

Sephora does this perfectly as their chatbot helps customers find their ideal makeup style and products to use. Even North Face collaborated with IBM to build a virtual assistant that gathers information on budget, activity, and climate to recommend jackets. This was such a success that it was responsible for over 60% of customers making a purchase.

Fraud

ML algorithms can also identify any patterns or anomalies in user behavior to identify potentially fraudulent activities. For example, PayPal implements an ML algorithm that analyzes transaction data (such as location, seller IP, and type of product being sold) to detect fraudulent transactions. This strategy helps maintain the brand image by protecting customers and maintaining the integrity of the platform.

Conclusion

So, I don’t know about you but I think you should use ML ASAP before you’re at the point where you’re trying to keep up instead of get ahead of the cure. The beauty of this is that you don’t have to do the work yourself, as Aiphrodite.ai uses ML to emulate your target audience and provide you with feedback on your unlaunched ads. So, if you’re Sarah Conner (enterprise) in this case, then let the Terminator (us) help you stay safe and take down Skynet (A/B testing).

Sources

https://www.forbes.com/sites/georgedeeb/2023/09/06/artificial-intelligence-is-taking-over-marketing/?sh=6eac8fb15588

https://www.akkio.com/post/10-companies-using-machine-learning-in-cool-ways#how-can-you-use-machine-learning-in-your-business

https://graphite-note.com/machine-learning-for-customer-segmentation#:~:text=Capital%20One%20is%20an%20excellent,identify%20its%20best%20customers'%20characteristics.