More recently, artificial intelligence (AI) was seen as a promising technology whose potential, however, can only be unlocked by high-tech companies. But today, it is becoming clear how great its marketing potential is, and how much catching up companies that, unlike competitors, did not consider AI as a marketing tool to begin with will have to do. 

In the world of real-time B2C marketing, there is still a very large gap between what AI solutions are on the market today and the degree to which marketers are ready to implement them in their strategies. This topic is of particular interest to experts from Forrester Consulting: we decided to look at the results of two studies on this topic to find out how important the role of artificial intelligence in modern marketing is becoming and what benefits can be obtained by using such technologies in their tactics.

Artificial intelligence drives revenue growth

According to a Forrester study based on a survey of more than 700 U.S. campaign executives, driving profit growth has become the No. 1 reason top executives choose to invest in applying AI to their marketing strategies.

For example, customer retention plays an important role in driving revenue growth, and AI makes it possible to engage existing consumers in more relevant communications. Plus, it allows marketers to target message audiences more accurately. and since a 5% increase in retention rate on average can lead to 25-95% revenue growth, AI’s potential in this area couldn’t go unnoticed. Three-quarters of organizations that have implemented AI technology into their business system have indicated they intend to increase their AI budget by at least 5% annually.

Artificial Intelligence as a Driver of Customer Retention 

The reason for choosing AI as the number two marketing tool was the desire to improve the quality of existing customer service. Attracting new customers costs businesses 5 times more than keeping old ones, and in addition, the likelihood of selling a product to an existing customer is 60-70%, as opposed to 5-20% for new customers.

According to the study, 96% of experts (the group of respondents who are the most advanced in the use of AI technology in marketing) and 86% of opportunists (the second most active group of respondents in the use of AI) indicated that their priority tactics at the moment is to engage and retain consumers through, primarily, the email channel and social networks. That is, those who use artificial intelligence are the most developed today.

It’s worth adding that according to another Forrester study conducted with artificial intelligence marketing technology provider Amplero, the potential of AI in email marketing should not be underestimated. In-depth interviews with more than 150 North American B2C executives revealed that 39% of respondents plan to let AI determine what content will be provided to users in newsletters based on analytics of their behavior, and 30% want to let AI generate that content for marketers.

AI allows you to target CA segments more accurately 

The more data you collect about your audience, the better you begin to understand and segment it, and at the same time, the harder it becomes for you to target it – because everything is constantly changing. Without a way to update this data in a timely manner, you’re always going to lose a little bit in the effectiveness of reaching your targets.

Using AI allows you to automate this process, making interactions more personalized. Response rates go up, costs go down, and ultimately ROI goes up. 

One area where AI targeting becomes even more effective is in finding new CA and development vectors. Forrester noted that targeting new potentially profitable CA is among the Top 5 reasons companies are incorporating AI into their marketing strategies. It integrates into their most popular online customer engagement channels: paid search (86%), display advertising (85%), SEO (66%), and web targeting (61%).

Insights gained through the use of AI are really actionable 

It’s really hard for marketers to understand and analyze all the Big Data they can gather about their audience. Real-time artificial intelligence can help them with this by instantly processing information, automating triggers and engaging consumers more successfully in communication.

Obviously, reflexivity over the immeasurable amount of data being collected is beyond the cognitive abilities of marketers, mere mortals, they actively create ideal scenarios for implementing AI in their strategies. For example, with 76% of companies prioritizing tracking Customer Lifetime Value (CLV) metrics, only 42% of them were actually able to measure them more or less accurately. Forrester’s study found that 52% of managers admitted to being able to manage customer behavior in real time, and they do so specifically with AI technology absorbing massive amounts of information from multiple sources simultaneously.

Artificial Intelligence at the Guardian of the Omnichannel 

Argument #3 in favor of adopting AI is the ability to meet the growing expectations of the consumer. The average user uses 4.5 devices to communicate with a brand and expects their customer experience to be uninterrupted as they move from a desktop site to a mobile app. Artificial intelligence can help here, too, by memorizing the customer “journey” through your system and ensuring seamless brand-customer interaction.

In the study under review, the majority of respondents agreed that creating a unified CX strategy is the foundation of a company’s success. To make the customer experience better, businesses need to think about integrating artificial intelligence technologies into their existing customer interaction platforms.

The most coveted AI tools for companies 

While neural networks and other sophisticated forms of artificial intelligence aren’t in vogue with marketers who can’t tap into their potential, companies already using AI are highlighting several of the industry’s masthead technologies. 

Clearly, implementing one such tool will not do wonders for your marketing strategy. 

Building brand loyalty through artificial intelligence CX incentives 

Emarsys estimates that 73% of customers prefer to buy from brands that personalize their customer experience. Forrester research found that retailers and e-commerce representatives view AI as a tool to strengthen brand positioning, including its ability to personalize in the Top 5 priority marketing mechanics.

At the same time, retailers admit that they cannot yet predict which plushies consumers will appreciate more: 84% of respondents indicated that they plan to incorporate feedback mechanics from consumers into their customer experience system in the near future to address this issue. The good news is also that 81% also believe that all of their company’s activities are centered around improving the customer experience and increasing loyalty.

AI adds a competitive element 

Improving competitiveness was cited by respondents as No. 4 on the list of goals they want to achieve with artificial intelligence technology. Thus, 42% of surveyed company representatives have already launched at least basic programs to use AI technology, and 37% are already interested, but have not yet made any steps in this direction. Their number will steadily decrease, as they will inevitably be left out of the progressive market.

Lack of technology remains a major barrier to adoption of AI

The pivot to artificial intelligence is a big and difficult decision for companies, most of whom are resistant to change and refuse to accept new software until the last moment. This greatly affects how managers perceive AI technology:

  • Fear #5: 63% of respondents don’t think they can find the right service to implement and support artificial intelligence in their marketing strategy; 
  • Fear #4: 64% still believe AI was created for data analysts and doesn’t offer plushies for marketers; 
  • Fear #3: 65% admit they don’t have enough product management skills to implement innovative AI tools; 
  • Fear #2: 65% see artificial intelligence as too complex, not flexible enough to build into business processes; 
  • Fear #1: 66% see the lack of technical skills among company employees as the main barrier to implementing AI. 

Since AI marketing involves advanced analytics with user-friendly tools and the automation of identifying new trends in consumer behavior, AI, on the contrary, can make it easier for companies to further innovate in the business. The main conclusion that can be drawn from these results is that managers themselves need to engage in self-education in this area, starting the process of preparing for the real implementation of AI.

AI is transforming the way we think about marketing 

According to the survey, 79% of companies were confident that AI technology will revolutionize marketing by making it more strategic, with narrower CA segmentation, product innovation and identifying new consumer incentives coming to the fore. 86% also believe that the effectiveness of marketing teams increases when using AI tools, and 82% think they have a positive impact on end-consumer interactions, especially by automating time-consuming tasks.

All of these findings have one common premise: the further out, the more marketers need Big Data analytics. The only problem so far is that the volume of this data and the time it takes to process it does not yet match the capabilities of marketers. The really effective solution here is artificial intelligence: and the winner here will be the first one to pay attention to it and, despite the difficulties and the global lag in technological development, take the first steps toward the implementation of AI in its marketing ecosystem.