AI in marketing implies the usage of customer data, machine learning, automation and other computational concepts to predict consumers’ actions. It helps marketers to easily segment the consumers and further breakdown data to create customized content for their audiences.
AI supports businesses to create marketing analytics techniques to target the right potential customers. It also helps digital marketers feed consumers with the right content on the right channel at the right time.
Various leading consultants like Deloitte, McKinsey, PwC, Accenture, Bain and Company, EY, and Boston Consulting Group are working towards identifying the role of artificial intelligence and automation in marketing.
Let’s look at some of their researches about the use of automation in marketing.
As per the CMO Survey Report 2020 by Deloitte, there is a slowdown in the implementation of AI and machine learning from 2.4 out of 7 in the last survey to 2.1 due to the onset of COVID-19. Across the world, organizations and marketing leaders are pivoting their traditional strategies and tactics to remain afloat.
However, as per the estimation, the implementation of AI and machine learning is likely to grow in three years to 3.5. The current effects of blockchain on marketing strategies remained at 1.4, while the expected impact decreased from 2.3 to 1.9.
Deloitte conducted interviews with more than 80 subject matter experts across the globe. It identified seven key trends that every business will need to focus on in the coming years to continue evolving socially and human-conscious enterprises.
These seven trends are:
Marketers continue to leverage AI to enhance customer experiences. They capitalize on emerging technologies such as artificial intelligence to predict and generate meaningful engagements with customers in nearly real-time.
Marketers should ensure to maintain a high level of security that does not threaten the trust of the entire organization.
The pressure for businesses to adopt automation was already high before the crisis as the technology delivered returns to early adopters.
The COVID-19 pandemic has further elevated the technology’s prominence, with many organizations using AI to triage the vast challenges and set a new course for their employees, customers, and investors in an uncertain, rapidly evolving landscape.
As per an article by McKinsey & Company, organizations introducing technology to sales can find ways that deliver double-digit gains in return-on-investment.
McKinsey & Company further states that automation is possible in 30% of sales activities.
Using analytics into lead-generation helps identify leads with the best conversion potential. Chatbots reach out to these leads over text or email, using artificial intelligence to understand the contact’s response and the conversion potential.
Thus, it allows sales representatives to contact only those leads that indicate a clear buying interest, saving time, reducing cost, and improving conversion rates.
Organizations that adopted sales automation consistently report an increase in customer satisfaction, efficiency improvements of 10 to 15%, and sales uplifts.
To make the most of the ton of data, sales leaders centralize commercial operations functions. They create commercial hubs that distribute better and more targeted insights and drive agility in the organization.
Commercial hubs help in bringing three elements to the organizations.
As per Bain and Company, many organizations are planning to increase their investments in automation after the onset of coronavirus.
The organizational disruption caused by the coronavirus pandemic favors digital tools such as workflow automation, chatbots or voice bots, and self-service portals.
Data and analytics professionals need to have access to common tools and technologies.
The most recent AI survey by Bain and Company analyzed that organizations that make use of AI were 4.2 times more likely to have access to standard tools and technologies than the others.
The results also showed that 90% of tech executives consider AI and machine learning as priorities. As per them, incorporation of AI and machine learning into their product lines and businesses is crucial. Executives prefer using AI to reduce costs and acquire new customers.
Organizations are focusing on adding systems and processes in their businesses for capturing data and distilling the relevant insights to address pain points.
They are developing their capabilities to better themselves at drawing insights and operationalizing their abilities to use machine learning in their business. Their motive is to understand customer needs and opportunities for competitive differentiation.
A study co-sponsored by EY in 2020 shows that AI has various uses in customer acquisition. It makes outreach more personalized, speeds up onboarding procedures, and makes up- or cross-selling based on insights generated by AI from current user data.
The above data also shows the top three use cases for customer acquisition by the rate of current adoption. Most of the participants have implemented AI to expand existing clients’ usage of products and services.
The study also revealed that 85% of participants have already implemented AI within their organizations and expect to use AI for new use cases in the coming years.
As per the survey, the leading companies share common practices that help them respond to disruption and obstacles to their advantage and achieve better financial performance. These practices include the following.
Businesses are quickly pivoting on technology, adapting virtual solutions, and innovating their way through disruption to make them a reality.
Accenture surveyed 2,000 consumers globally, out of which 70% expect that technology will play a more significant role in their lives in the next three years. Around 83% of more than 6,000 businesses accepted that technology is a crucial part of the human experience.
The success of next-generation products and services depends on companies’ abilities to elevate the human experience. They should use new technology-based business models to align with the customer’s core values.
As per the survey, 76% of executives strongly agree that companies need to re-engineer experiences that bring technology and customers together in a human-centric manner.
Accenture, in its Tech Vision 2020 report, unfolded five key post-digital trends that are shaping businesses toward new technology-based business models.
Challenges arising from the spread of coronavirus are likely to accelerate the use of new technologies and tools. Many consumers are avoiding trips to the store in the current situation.
However, artificial intelligence and virtual reality technologies have the potential to bring the in-store experience into their homes.
As per a recent survey by Nielsen, 51% of global consumers are willing to try artificial intelligence and virtual reality technologies to assess products and services.
Nielsen explained that the rise in technology usage worldwide starts with the basic functionality offered by smartphones, such as product discovery and mobile payments.
However, as consumers become comfortable with technologies, further advancements such as auto-subscriptions and personalized location alerts will change the way consumers buy. It will help speed up the adoption trajectory of more sophisticated tools like artificial and virtual reality.
A few months ago, Nielsen announced to leverage the AnswerRocket’s AI-Powered Analytics Platform to automate insights generation for the consumer packaged goods manufacturers and retailers.
It will help Nielson to merge multiple data sources, query data using natural language, apply machine learning algorithms, and produce insightful stories to guide decision-making.
AI is the crucial source of transformation, disruption, and a competitive advantage in today’s economy. As per PwC, AI will contribute up to US$15.7 trillion to the global economy by 2030.
However, according to PwC’s 2020 AI Predictions Report, there is a sharp decline in the number of executives you are planning to implement AI enterprise-wide in 2020. Only 4% are planning to deploy technology as compared to 20% last year.
90% of the surveyed executives also believe that AI offers more opportunities than risks. Executives focusing on utilizing new technologies are already achieving ROI on their AI investments and laying the groundwork for an AI-enabled enterprise.
Here are five things PwC suggests to organizations for long-term success.
Business leaders are considering their priorities and imperatives in an integrated way. Their three value drivers of transformation include humans at the center, technology at speed, and innovation at scale.
The organizations are also taking care of other essential elements such as collaborating within ecosystems and adopting trust by design and security and governance models.
However, businesses must understand whether they are going to make meaningful changes and provide long-term value to their customers, their people, and society for successful transformation.
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