The Marketing business function contains ample opportunities for machine learning systems. Algorithmic marketing enables the optimisation of pricing strategies in accordance to market fluctuations and the expectation of competitor products and actions. Moreover, life-cycle value analysis and RFM (recency, frequency, monetary) analysis facilitates a greater holistic understanding and targeting of high value customers. Lastly, sentiment analysis evaluates customer engagement and the reception of various marketing strategies.
People want brands to care about them. So much so, that 52% of customers are likely to switch brands if they don’t feel a company is making enough effort to personalize their messaging. Machine Learning can be used to analyse huge reams of customer data on their customer’s online behaviours, interests, and past purchases to tailor the online shopping experience. Everything from the emails to the product offers is personalized, along with every touchpoint in the buying journey. It may seem somewhat ironic, but machine learning helps to create a more human experience. E-commerce personalization makes customers feel more important, with the experience carefully crafted to cater to their needs and interests.
When it comes to marketing, it is incredibly useful to have a system that can quickly identify trends and actions in real-time, and then respond accordingly without any human input. This ability to “learn” on the go is what makes Machine Learning so important in marketing today, and in the years to come. In the past, many marketers launched advertising campaigns on little more than guesswork. Without truly knowing their audience. A lot of money is wasted on ads or promotional efforts that do not resonate with target customers.
Machine learning eliminates this marketing waste. Taking a scattershot approach to marketing in the digital age is not only unnecessary but mere folly. Machine learning takes the guesswork out of the process, allowing marketers to reach their audience with content and product offers that stand the best chance of engagement – and ultimately, conversions.