Artificial Intelligence (AI) has opened up a world of opportunities for business owners by collecting new types of data and deriving insights that can positively influence consumers on both an individual and group basis. Each of these new opportunities can either interact with consumers through front-end user interfaces or work to deliver information to consumers through back-end development. Examples include customer chat bots, product recommendations, content creation and curation, as well as predictive analysis in reporting.
One of the most important ways AI can be used in digital marketing is to enhance the value of customer loyalty programs for both businesses and consumers. In order to gain retailer rewards such as discounts and coupons, customers are often willing to offer data – age and location demographics, buying habits and preferences – which AI technologies can use to predict how individual customers, as well as all consumers in a given geography, will respond to future marketing initiatives.
Given thatit costs five times more to acquire a new customerthan it does to maintain an existing customer, these AI-driven, hyper-personalized reward program perks are key to customer retention. Utilizing AI to collect and interpret customer data allows retailers to create completely customized experiences, so that each customer becomes their own segment, receiving personalized suggestions and shopping incentives.
Forbes Agency Councilmember Natacha Gaymer-Jones is the founder and CEO ofSWOON Performance Marketing, a Los Angeles-based marketing agency. A longtime digital marketing and advertising executive who’s worked with household names such as Ford, GM, Beats by Dre, Nike, Pepsi, BMW, Intuit, Honda, Volvo, Fox, Mattel, and Sony, Gaymer-Jones’ present work is centered on transforming marketing campaigns into hyper-focused growth engines. She believes the key to her success is a precise execution of systematic, agile product development and marketing automation technologies that allows for consistent return on client investments.
Gaymer-Jones believes it’s important to generate a conversation about AI and digital marketing because AI, as well as its current and future applications, is so commonly misunderstood. “Many people believe that implementing AI in their marketing campaigns or business processes will replace the need for real human intelligence, but that’s not the case at all. Instead, human intelligence can be used to augment AI; one might argue that humans still need to serve as the overlords of AI,” she says.
AI technology is designed to automate many mundane and repetitive tasks humans currently perform, but this automation requires human design strategies and oversight. It also frees up human brain power to think more creatively and innovatively, which may ultimately create more jobs than it eliminates. TheWorld Economic Forum predictsthat new machine and algorithmic technologies will eliminate 75 million jobs while creating 133 million new jobs by the year 2022.
“It is simply false to believe that AI, in and of itself, will always produce better results than what a human could do on her own,” Gaymer-Jones says. “For example, if the wrong type of AI is deployed in any digital marketing strategy, it can create an avalanche of bad customer experiences. Bad data can be devastating to a brand or business. Human oversight can (and should) avoid those negative consequences.”
Artificial intelligence is continually growing and improving. Gaymer-Jones advises businesses to stay on top of the trend and begin implementing AI into their digital marketing strategies to provide a better customer experience while gaining vital consumer insights. She cautions brands to make sure their AI strategies are well developed before going live, however.
“Irresponsible, hasty AI strategies can do more harm than good, so implementation of AI should never be taken lightly.
