Credit from Sailthru
In 2017, Netflix recaptured $1 billion in revenue by boosting their search results with artificial intelligence. Today, we continue to operate in an environment where digital savants continue to outpace the rest of the field. Amazon captures 50% of all ecommerce; Facebook and Google capture nearly 60% of all digital ad revenue.
AI appears to be everywhere. We now have AI for website personalization. AI-powered digital journey builders. AI for product discovery. AI for search engine optimization. And most of these vendors don’t agree on exactly what AI is, nor do they agree on a definition of its close cousin, machine learning.
Fortunately, most marketers don’t need to parse the details of whether a particular tool qualifies as AI. The key question isn’t, “Is it really AI?”
The key question is, “What can this tool do for me?”
Here are just a few ways that artificially intelligent software can help marketers:
1. Proactive reporting.
Instead of asking marketers to log in every morning, a reporting system powered by AI could proactively push anomalies to the relevant members of a marketing team. If something is going unusually well, or particularly wrong, the system should be able to detect that and then push out those outlying data points, and the relevant information surrounding them, proactively.
That way, your team knows where to focus either for problem solving or for changing future plans based on what’s working. Most mature organizations have business and program review processes in place, but with anomaly detection, these processes can become more agile and more revenue can be captured in the process.
2. Automated testing.
Bandit testing, a form of AI, helps automatically determine how much traffic each of your options should get at any given point in time based on success. If one variant appears to be winning, bandit testing will increase the amount of traffic to that particular variant in an effort to get to statistical significance faster as well as to capture incremental revenue along the way. If that variant is still winning with the increased traffic, you can commit to it earlier to impact revenue from your total audience.
3. More targeted recommendations.
Personalization has become somewhat synonymous with AI, but product and content recommendations are not yet as intelligent as they can and will get. With AI organizations can create “reverse recommendations” that enable marketers to identify the right audience for a specific set of products they are working to prioritize based on inventory, margin, or a multitude of other variables. Using this approach in tandem with traditional recommendations, where marketers can automate recommendations to individuals within a pre-defined audience, has potential to dramatically increase revenue gains from this basic form of personalization.
4. Better subject lines and mobile push.
Every marketer knows the importance of compelling subject lines and push notification content. But what’s click-worthy to one may seem utterly boring for another. Software that is artificially intelligent should be able to coach you as you write in order to increase open and tap-through rates.
It should know what you’ve tried before, and which tactics have been most (and least) successful. As you type, it could give you a score as to how effective that copy will be, relative to your organization’s email open rates and mobile push notification tap-throughs.
5. Better, and easier, channel optimization.
The promise of omnichannel campaign management and personalization lies in the ability to reach the right customer, in the right channel, with the right message, at the right time. AI can make it easier to achieve this, and could make a particular impact in channel optimization.
Based on a customer’s habits, preferences, and past and predicted behaviors, AI can decide if they would be better served with an email or a push notification. AI can also send the preferred message on that channel.
6. Smarter segmentation.
Audience segmentation continues to grow in complexity thanks to the wealth of data forms available to CRM, business intelligence, and data science teams. Segments can be built using demographic, behavioral data, explicit preference data, implicit preference data, and even predicted behavioral data like propensity to purchase in the next 24 hours, predicted average order value, and propensity to opt-out of communications. While this attribute bloom is highly valuable, it also presents a level of complexity far greater than traditional recency, frequency, monetary value segmentation and similar segment modeling techniques.
7. True cadence control.
Sending the right number of messages to any individual presents a significant friction for all marketers. But with AI, we can strike a healthy balance as AI could determine the optimal messaging cadence for every individual customer based on a blend of historic and predictive data.
AI can also automatically suppress audience members from sends when they are not predicted to spend or engage in revenue-bearing activities (i.e. pageviews on a media site). The ability to manage this automatically, at scale, would also remove the need for developing and testing a cadence strategy, allowing marketers to point their time to higher value strategic work.
Dynamic Yield’s omnichannel personalization technology helps marketers increase revenue by automatically individualizing each user interaction across the web, mobile web, apps and email.
The company’s advanced data engine uses machine learning to identify revenue opportunities in real time, enabling marketers to take instant action via personalization, recommendations, automatic optimization & real-time messaging.
No marketer needs to adopt any new technology simply because it’s powered by AI. But AI does have the potential to make marketing technology more effective and more intuitive,
and to greatly improve the user experience. Tightly integrated AI can make your existing marketing efforts more efficient, and can help marketers work smarter. That’s good for everyone, from the CEO, to marketers, to the customers who grow to love your brand.