Artificial Intelligence looming into Marketing
Recently, I browsed a matrimonial site and has gone through the various profile visibility options. I felt it is not worthy and left the website. The very next minute, I received a call from the matrimony customer executive and trying to ask my marriage requirements.
The question here is not about giving my marriage requirements to them or not, But, it is how do they actually know that I just peeped into their site?. How could they track my number?.
I got the answer to the second question immediately after the call, that I have downloaded the app into my mobile. But, the first question remains stable still.
I have come across the similar process of customer service executives catching hold of website/ mobile visitors. I have dug deeper into this marketing technique and then I got an answer called “ Predictive Analytics in Marketing through Artificial Intelligence”.
Predictive analytics in marketing is a form of data mining that uses machine learning and statistical modeling to predict the future of human behavior based on historical data.
Not convinced? Okay. Let me give you an example of application of Artificial Intelligence in Marketing.
Revolabs is a leading manufacturer of wireless USB speakerphones, audio & video conference equipment, VoIP phones & more. They have a site with buy buttons next to their product catalog something like this:
Whenever the customer is clicking the “Buy Now” button, it sends customers straight to the appropriate page on the retailer’s website, where they can purchase the product right away. They have use Indix, Data-as-a-Service Products information Platform that helps the businesses to improve the quality of their digital product catalog and develop innovative ways to buy and sell products. They have configured Indix API to their “Buy Now“ buttons on the product pages.
This strengthens the channel of customer- relationships by sending customers to preferred re-seller to buy. Revolabs is getting much more inbound interest from other potential re-sellers worldwide. This is much used when there is no option to buy on the website. Customers who were researching on the site needed to go elsewhere to buy.
Coming back to my matrimony example. They have seen me downloaded the app on my mobile. I have created my profile some time back but did not go for premium memberships. I have visited the app for quite a number of times for the past 2 months but did not go to the membership page of the website.
So, now, when I visited the membership page after 2 months, they have realized and predicted my need of converting my profile from free to premium and the system generated a trigger to the customer service executive about me. Therefore, she called me immediately.
Predictive Analysis is used for customer segmentation. The algorithm segments target groups based on numerous variables, everything from demographics to average order total made by the customer like
- First order product category (e.g. shirts vs. dresses)
- First order sales channel (e.g. web vs. retail store)
- First order revenue created.
- Customers behavior in each segment made a second order.
- What is the average Leaning Time Value the customer made on his second order?
Then, “true” predictions about customer behavior are made. They predict the likelihood of engagement;, propensity to unsubscribe, propensity to convert, propensity to buy, and propensity to churn.
After this, they start sending up-sell, cross-sell, and next-sell recommendations to the customers.
Many small companies are driving billions of impressions, millions of clicks on eCommerce product sales. They are retrieving useful data about face-to-face sales meeting based on these predictions. According to a study by the Aberdeen Group, predictive analytics users are twice as likely to identify high-value customers and market the right offer.
What do you think, the technological innovations using Artificial Intelligence and Predictive Analysis would lead a quicker turnaround on ROI for Businesses or it would again lead to a form of outbound unwanted distracting marketing techniques?
Waiting for your opinions….!