If 2019 was about integrating Artificial Intelligence into one’s marketing strategy (as it is perfectly explained in this Forbes article), then 2020 is all about AIM, or Artificial Intelligence Marketing.
As the name suggests, it is no longer about AI being another amazing tool in a marketer’s toolkit: generating huge amounts of campaign performance data and then trying to invoke clever algorithms to analyze it is getting outdated.
From now on, it is all about personalized approach that is based on behavioral analysis, consumer emotional intelligence and future predictions, and a marketing mix that is built around that kind of insights-driven personalization.
What is Artificial Intelligence Marketing exactly?
AIM is a strategy of leveraging technology for the improvement of customer experience. Such technology utilizes the latest advancements in behavioral science, emotional intelligence, predictive analytics and machine learning to provide insights into consumer behavior.
Then, AIM takes marketers one step further. The provided insights serve as basis for smart segmentation of the target audience, channel prioritization and targeted content generation – all done automatically.
Equipped with these insights and personalized content and targeting, marketers should review their marketing mix to make sure the chosen tactics really serve their purpose.
What are the benefits of using AIM?
AIM is very goal-specific and there are three key goal categories a marketer might pick to focus their AIM strategies on.
1. Optimizing Growth
Instead of going after everyone in the market, marketers are able to identify those buyer segments that are the most likely to close with the help of AIM.
The segments in question might focus on the most loyal buyer personas or higher life-time-value ones. In any case, the key here is that AIM allows better understanding of those segments and their behavior, and then enables acquiring new customers who share similar personality traits.
2. Increasing Engagement
It is not a secret that even the most loyal subscribers or followers tend to show less interest over time. “Better segmentation” used to be the magic pill, but was it any helpful? Every database has its segmentation limits – marketers are not able to do more as they are not generating sufficient amount of new data about their customers.
AIM helps to overcome this challenge by combining first, second and third party data about your customers and then leveraging AI to discover their personality traits. We are talking here about enriching your customer data with hundreds of additional data points. Armed with these new insights about the existing customers, marketers are able to personalize their content in a way that truly works.
3. Managing Retention
Extremely important for subscription businesses, the goal of managing customer retention might be tricky to achieve. Traditionally, marketers were trying to keep the churn rate stable while attracting new customer at a higher pace, which would keep the overall customer database growth positive and stable. We all know such approach is pricy and effort heavy.
When invoked, AIM focuses on a comprehensive personality analysis and archetyping, which is basically a type of segmentation based on emotional intelligence, behavioral traits and predictive analytics. Generated insights allow marketers to understand, what it is exactly that would prevent target segments’ churn, and which are the segments that are no longer worth spending one’s time on.
According to Forbes , 77% of companies in the US and the UK were already using AI-related technologies at some extend in 2019. Among them, 31% experienced dynamic business value growth. The trend is obvious – the ones, who are faster to adopt Artificial Intelligence Marketing, will reap the tech’s benefits. The competition is on.