In 2020, we are privileged to live in a fully digital world, thanks to emerging cloud-based technologies and the rapid development of artificial intelligence algorithms. However, utilizing the technologies available to us in a smart and utilitarian manner is difficult for many business owners.
According to Forbes, 74% of customers feel frustrated when a website isn’t personalized, with 91% ready to shift to brands that provide more personalized experiences. Likewise, Medium reports that 94% of marketers and 90% of agencies agree that personalization is critical to current and future success on the global market.
Personalization in the wake of modern trends and high-speed information turnaround can only be achieved effectively through AI algorithms – but at what cost? Let’s take a look at how personalization and AI can go hand-in-hand with sales and marketing, as well as the benefits of such a combination.
The Ethical Dilemma
The first order of business in regards to implementing AI in marketing or sales concerns the ethical dilemma of such a decision. Is it morally just to use AI to sell goods and services to human beings? According to Adobe, 80% of technologies will have AI foundations by 2021, with 44% of executives arguing that AI provides businesses with critical decision-making data.
In order for businesses to remain competitive and continue its organic growth on the open market, emerging technologies such as AI-based personalization are a necessity. AI tools dedicated toward content personalization and marketing are just that – tools to be used by advertisers and content creators.
Their true value lies in extremely efficient data segmentation, extrapolation, and decision-making – not as end-all tools that can take on sales and marketing without supervision. In that regard, the ethical dilemma surrounding AI algorithms is not based on factual data, rather, on skepticism in regards to new and untested technologies.
Informed Audience Segmentation
When it comes to the practical applications of AI in personalization of sales and marketing content, audience segmentation is a number one spot contender. Audience segmentation plays a pivotal role in the success of any business, regardless of its scale or niche. This is especially true for brands with a plethora of types of goods which have significantly different target audiences, such as apparel or jewelry brands.
As such, AI-based algorithms can help segment the audience based on various filters, which can help with targeted sales down the road. While such segmentation can indeed be done manually, it is time-consuming and leaves little room for human error. Implementing AI into the process of personalization can drastically improve the engagement and conversion rates for the business in question.
Chatbots & Machine Learning
One of the most direct and audience-centric approaches to implementing AI in your personalization efforts is to rely on chatbot algorithms and machine learning. According to Small Biz Genius, 64% of internet users admit that 24/7 availability is the best feature of chatbots, with 37% who prefer chatbots outright. Chatbots can answer 80% of standard conversational questions, and 55% of customers like them because of their near-instantaneous response time.
This trend is poised to continue its disruptive development, as chatbot algorithms become more competent and multilingual as time goes by. Chatbots can reduce staffing costs and effectively address most minor support tickets and questions customers may have. This makes them highly valuable as a front-line defense in terms of personalization, both in case of sales and marketing.
Dynamic eCommerce Experience
Online shopping is one of the most developed and accessible forms of direct-to-consumer sales, especially in 2020. Given the nature of eCommerce and the vast array of goods each platform can provide, integrating AI algorithms into them is a no-brainer. AI can help personalize the experience of each individual visitor based on their previous searches, purchase history, cookies, and profile information.
Personalized emails and chatbot messages can also be used as sales content to make the search for the right items easier and more enjoyable. Amazon Go AI is the perfect example of how artificial intelligence will reshape the face of sales and marketing as we know it. With COVID-19 still in full swing, creating dynamic eCommerce experiences with AI is a worthwhile investment for any online storefront.
The Benefits of Personalization and AI
Once the chips are down, and AI is successfully implemented into your sales and marketing pipelines, what happens next? As we’ve stated, AI algorithms are only as effective as the persons in charge of directing them to the right action at the right moment.
Marketing experts with a keen eye for customer trends will know how to take full advantage of informed decision-making, which AI algorithms can provide. Likewise, chatbots will efficiently automate baseline customer engagement and leave your staff free to focus on content planning and sales. Ideally, the benefits of AI in your personalization efforts will include:
- Full overview of your customer’s journey efficacy
- Extensive data analysis and decision-making possibilities
- Identification and elimination of bottlenecks in your business model
- Proactive customer engagement and sales activities
- Mitigated margin for error and reduced revenue loss risks
Algorithm-Based Business Models (Conclusion)
You may be apprehensive about delegating critical tasks to AI algorithms – and you are right to be skeptical. However, we already live in an interconnected world with an extensive AI presence all around us.
Google AI is a prime example of how artificial intelligence already has a foothold in our reality – all we can do is adapt and overcome. Brainstorm on how AI can help your brand’s personalization efforts in order to bring your sales and marketing initiatives to the next level. Once you discover meaningful ways of using AI and personalization in tandem, your business will be one step closer to success in the modern market.