Role of AI in Personalized Marketing

Have you ever observed how an ad that aligns with your interest pops up on your screen? That’s personalized marketing based on your internet footprint and your interests. Marketers use AI technologies to carefully analyze user’s preferences and then design marketing campaigns around them.

The effects of personalized marketing are very clearly visible for brands and customers. Brands leverage a range of AI tools to cater to end user’s needs and preferences on a personal level.

AI tools offer personalized experiences, which leads to retention and customer loyalty. Leveraging AI tools can raise customer satisfaction by up to 20%.

In this guide, we’ll break down the role of AI in personalized marketing efforts and how to use it.

What is AI in Marketing?

AI tools like ChatGPT are incredible at using numbers and converting them into actionable insights. Marketers and businesses use AI tools to get actionable tips to offer a personalized marketing experience to their customers. 

AI tools can even make predictions after being trained on large amounts of company data, such as purchasing history, demographic information, browsing behavior, and social media activity.

All this data combined can help AI tools to make predictions about the preferences and interests of customers at a particular time. Traditional marketing approaches rely on demographic data, but AI-driven marketing efforts help businesses stay ahead of the curve.

Using AI in marketing has many benefits, such as - 

• Automating and scaling marketing efforts
• Optimizing marketing campaigns
• Increasing customer satisfaction and loyalty

Here’s a breakdown of the benefits businesses get while including AI in their marketing efforts: 

How To Use AI for Marketing?

AI is used in many ways to enhance marketing for the business. Different Approaches like Data Analysis and Insights, Dynamic content Personalisation, Predictive Analysis, Chatbots and Virtual Assistants, Ad targeting and optimization are common in Businesses that have adopted AI in their systems to improve marketing.

Customized email campaigns, Web Personalisation, and adjusting the website in real-time to match users’ behavior are also some of the ways that can lead to improved personalized marketing. We can observe various real-life examples of how big brands have adopted AI, drawing inspiration from these successes to innovate and create something new.

Some Real-life applications of AI in personalized Marketing 

1. Recommendation Systems

Companies like Netflix, Spotify, and Amazon have recommendation systems that are based on AI algorithms that suggest products based on past experiences.

2. AI chatbots and Assistants

Sephora, a leading beauty brand, uses AI-powered chatbots to enhance its shopping experience. These chatbots assist customers with virtual try-ons, product searches, and seamless navigation, ensuring a more interactive and convenient shopping journey.

3. Content Generation

Many brands utilize AI tools to create content to market their products. A famous Ketchup brand Heinz uses an AI image generator to advertise its iconic ketchup. 

4. NBA's Predictive Analysis

NBA(National Basketball Association) uses AI to analyze fan engagement patterns, sends personalized game highlights based on favorite players/teams, and times marketing messages according to predicted game outcomes.

5. In-Store Personalization

Walgreens uses AI-powered digital cooler doors that show personalized ads and display different products based on customer demographics and time of day. It also adjusts promotions based on current inventory and store traffic.

6. Dynamic Pricing

Airlines (e.g., Lufthansa, Delta) use AI to analyze customer data like past purchase behavior, booking timings, and other parameters like competitor prices, and even weather forecasts to adjust ticket prices in real-time for individual routes and customer segments.

7. Location-Based Marketing

McDonald's uses AI to analyze traffic patterns, weather, and local events and changes digital billboard content in real-time based on traffic conditions, then displays different menu items based on time of day and local weather.

How can we integrate AI into our business for personalized marketing?

One reason why brands are hesitant about integrating AI into their marketing efforts is the lack of custom AI tools. Fine-tuning LLMs and building personal AI tools for marketing can be both expensive and time-consuming. Not to mention, it requires an expertise that most businesses don't have.

This is where MonsterAPI comes in. MonsterAPI's no-code LLM finetuning solution lets businesses fine-tune a large language model to create a personal agent for specific marketing tasks.

Small scale businesses to large scale enterprises can build personal AI agents for different verticals of marketing (content creation, data analytics, image generators).

Fine-tuning a large language model on MonsterAPI is super easy and requires no coding knowledge. The entire process is broken down into 3 steps:

1. Choose an open-source model & your task type
2. Upload dataset
3. Setup hyper-parameters & launch job

Once you fine-tune a LLM on MonsterAPI, you'll be able to build a personalized marketing agent, personalized content generator, text-to-image generator, AI chatbots, real-time prediction tools, and more.

Conclusion

Artificial intelligence is a game changer for marketers as it helps personalize, optimize, and automate many key marketing activities. AI has transformed the way business caters to their customers enabling brands to deliver more relevant and engaging experiences. 

As technology continues to advance, the potential for AI in marketing will only grow. By adopting custom AI solutions, businesses can have effective and better marketing campaigns that build customer trust and loyalty. AI will continue to play an increasingly important role in marketing by augmenting human capabilities, automating routine tasks, and providing valuable insights.