Why use machine learning and AI for personalization and marketing relevance?

We’ve touched before on the importance of personalization when it comes to improving customer interactions with your business. Making investments in machine learning (ML) and artificial intelligence (AI) tools gives brands the ability to gather the insights necessary to improve customer experiences and increase the relevancy of their marketing campaigns.

Why is marketing relevance important?

Relevance is a measure of just how well your company does in creating appealing messaging for your core audience. Imagine you’re a dress design company looking to appeal to young professional women. When they enter keywords into a search engine looking for new business attire, the ads and content that appear from your brand should speak to their current needs. If not, they’re going to move on and look at other competitors.

Marketing relevance is about looking beyond elaborate sales funnels. Despite their best efforts, brands have difficulty quantifying what customers want from one moment to the next. A marketing campaign that seemed like a slam dunk six months ago can land with a thud in the marketplace because it doesn’t resonate with the core audience.

How can AI and machine learning help improve personalization?

Adding ML and AI into the mix helps marketers remove a lot of the guesswork that goes into figuring out what customers want. It’s a big reason why 80% of marketers rely on AI. The technology helps in the creation of customer journeys built around the needs of a brand’s audience. In addition, AI data insights give companies more real-time information to add marketing personalization to websites based on the behavior of site visitors.

The power of machine learning and A/B testing

Marketers often rely on A/B testing to better understand consumer preferences to inform their marketing decisions. Traditional A/B testing involves splitting up an audience to test variations of a marketing campaign and figure out which one brings a more positive response. However, figuring out a winner between two different campaigns can take up a lot of time.

Incorporating ML into A/B testing allows brands and marketers to try out new campaign variations and optimize older versions. Machine learning lets you experiment more and collect information faster. For example, you can have models collecting information about visitor interactions from the first moment they come by your website. The data collected helps you refine your campaigns, which goes a long way in speeding up the A/B testing process.

In addition, the algorithms that drive ML only get better as traffic picks up on your websites. As a result, companies get more clarity around what works best for different users and information to improve the overall customer experience.

Benefits of using AI and ML in marketing and personalization

AI gives marketers the boost they need to optimize marketing campaigns. Instead of relying on “gut feelings,” ML and AI provide insights that help cut down on human error that can lead to a campaign misfire. While you still need humans to refine the information provided by technology, there’s no limit to the kind of data it provides.

Ideally, the insights give you the chance to develop innovative ways to make your audience happy. That’s especially important considering that 66% of customers expect companies to understand what they need.

Hitting the target for personalizing experiences for your customers helps lead to higher revenues. Companies that got it right when it comes to personalization increased revenues by 40%, according to Salesforce’s Next in Personalization 2021 report.

Using AI modeling techniques and ML algorithms helps marketers find ways to improve their media mix model. You can gather information from various channels then create models to help you figure out optimal budgets and where to focus your spending. That allows marketers and brands to use their marketing dollars more efficiently.

Make ML and AI Integral to your marketing personalization efforts

Investing in AI and ML technology gives you the extra boost necessary to provide audiences with personalized experiences that turn them into loyal customers. The information collected also helps markets craft campaigns that speak to the individual needs of an audience. Learn more about how the Lytics platform helps you bring each part of your engagement strategy together.