Prasad Shejale
Guest Article

Unleashing the power of AI in marketing to drive personalisation, growth and competitive advantage

Our guest author unravels how AI fuels personalisation, growth, and a competitive edge in today's dynamic business landscape.

Artificial Intelligence (AI) has become a game-changer in the business world and its impact on various functions in an organisation is undeniable. In today’s highly competitive environment, marketing is the one business function that requires AI the most. Consumer journeys are becoming increasingly complex and data abundance is growing exponentially, presenting an immense challenge for marketers trying to deliver personalised experiences.

With the transformative power of AI in marketing, backed by research data and insights, marketing professionals can achieve their KPIs of enhancing customer service, making confident data-driven decisions and facilitating a more personalised experience at scale, at the speed of business. 

Enhance customer service with AI-powered chatbots 

According to a study by Salesforce, 64% of consumers prefer chatbots due to their instant responses and 24/7 availability. Furthermore, 80% of business buyers also expect companies to respond to and interact with them in real time.

AI-powered chatbots and virtual assistants have revolutionised customer service with the automation of frequently asked queries, making it possible to ensure quick response times and high availability to consumers. These intelligent systems utilise Natural Language Processing (NLP) technology to understand and respond to customer queries more intuitively and conversationally. 

Besides delivering always-on customer service, AI-enabled chatbots also offer a more cost-efficient way to interact with customers. If one looks at absolute numbers in just the banking sector alone, Juniper Research has found that the operational cost savings from the use of chatbots will touch USD 7.3 billion globally by 2023, up from USD 209 million in 2019.

Notably, the highly scalable nature of the technology—the integration of Generative AI, for instance—also allows businesses to adapt and enhance their customer service capabilities. 

Data-driven decision making 

One of the key advantages of AI in marketing is its ability to analyse large volumes of data and derive actionable insights. AI can process structured and unstructured data from various sources—including customer interactions, sales figures, market trends, and social media—and apply machine learning and data mining techniques to identify patterns, correlations, and trends within the data.

This can help marketing professionals predict consumer behaviour and make informed decisions to optimise their strategies. For example, AI can segment customers based on their preferences and past behaviour, enabling marketers to deliver targeted messages and personalised campaigns.

AI-powered recommendation engines have also shown significant potential in driving sales and enhancing the customer experience. Research by McKinsey & Company has revealed that personalised recommendations can increase conversion rates by up to 300%. Netflix and Amazon are some noteworthy examples where AI algorithms have been leveraged to deliver tailored content and product recommendations to their viewers, resulting in higher customer stickiness, satisfaction and increased revenue.

Personalised communication at scale 

According to a study by Accenture, 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations. Consumers today expect personalised communication from brands across various channels. Meeting this expectation will increase the chances of converting interest into a sale. 

AI enables marketers to deliver tailored experiences at scale by automating content creation and customisation. Natural Language Generation (NLG) technology can generate dynamic and personalised content based on individual customer profiles. This allows marketers to run targeted campaigns and tailor their messaging to specific segments, resulting in higher engagement and conversion rates.

Furthermore, sentiment analysis tools—powered by AI—can analyse customer feedback and social media data to gauge brand perception, customer satisfaction and loyalty. A Deloitte research has revealed that 62% of organisations using AI for sentiment analysis experienced a positive impact on these very metrics. Understanding customer sentiment in real-time allows marketers to re-engage with old users and respond swiftly to issues and concerns, resulting in stronger customer relationships.

The acceleration of digital transformation has now made it imperative for businesses to adopt a data-driven approach to drive the next phase of growth. Whether it is revenue growth or customer acquisition and retention, AI has become a critical enabler for marketers. From enhancing customer service through chatbots to leveraging predictive insights for decision-making and scaling personalised communication, AI empowers marketers to connect with customers on a deeper level.

As research and advancements in AI continue, its impact on marketing will only grow stronger. Businesses need to embrace AI and also be alert to advancements in this space if they want to unlock the full potential of personalised marketing and drive sustainable growth in a competitive marketplace and consumer behaviour is constantly evolving. 

(Our guest author is Prasad Shejale, CEO and Founder of LS Digital)

Have news to share? Write to us