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How to Design an AI Marketing Strategy

How to Design an AI Marketing Strategy

Updated - February 13, 2023 By David Trounce Leave a Comment

Artificial intelligence solutions have become indispensable in the age of digital marketing, principally when the priority is placed on speed and workforce optimisation.

While AI systems are rarely treated as a holistic replacement for H2H marketing, they can significantly increase the efficiency of marketing specialists who can make complex strategic decisions based on the generated data and additional analytics.

Moreover, certain aspects of customer interaction and management can be primarily handled by integrated AI tools to assist with customer base learning, faster decision-making, predictive marketing, and augmentation of outreach efforts.

What is AI Marketing?

AI is essential for streamlining your marketing strategies and producing valuable, customised content while at the same time acquiring better tools for attribution measurement. Most efforts to introduce AI tools into the existing framework take a combined approach, enhancing their productivity through:

  • Task automation
  • Data analysis and collection
  • Machine learning
  • Dynamic customer relationship management
  • Programmatic advertising
  • Intuitive content generation

Machine Learning

Digital marketing campaigns can be enhanced through machine or deep learning efforts, in which vast volumes of data are analysed to train AI in making informed and contextualised decisions about future campaigns.

Usually, these models are built and trained by third-party experts and then used by various departments to automate media buying, improve recommendations, predict sales outcomes in CRM, and more.

Automation

Task automation is essential for improving general performance speeds. Typical uses of task automation include email bots, chatbots, and other ordered processes. These types of applications are designed to manage tasks that lack conceptual nuance or don’t require human intervention.

Analytics

The current digital marketing landscape is exceptionally data-driven, making big data and effective analytics a necessary tool for driving campaigns and new strategies. Simply acquiring data won’t be enough to improve your outcomes—it has to be analysed, qualified, and applied effectively.

Given the sheer amount of information that can be gathered for marketing purposes, it only makes sense to utilise AI tools to sort through it and generate relevant content and patterns. Besides determining pertinent data points, AI can offer real-time analytics and recommend new strategies based on past contexts.

Using Marketing AI

The basis for understanding the optimal implementation of marking AI solutions is to correctly assess your goals and tailor the options available to your team to increase rather than overwhelm your current capabilities.

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Above all, these elements are designed to improve the effectiveness of customer communication and help develop more comprehensive strategies based on the vast amounts of data accumulated through relevant AI tools.

Meeting Specific Objectives

A tool can only be effective when appropriately utilised to achieve an established goal. Any potential AI solutions must be applied to reach quantifiable objectives and positively affect your performance factor.

  • Consider the areas that need improvement, for instance, boosting engagement and customer personalisation;
  • Determine a stepped approach to AI marketing implementation based on your objectives, i.e., which software is best to use and which areas need automation, etc.;
  • Support the framework with competent human expertise, specifically hiring specialists that can interpret data and apply these tools effectively.

When you establish these goals, you can better understand the type of AI framework you will need to achieve them. At the same time, it will drive your long-term incentive of increasing marketing ROI, clearly assessing the subsequent impact of AI-based campaigns, and accelerating your decision-making processes.

Sourcing and Analyzing Data

Any future AI-driven marketing relies on relevant data acquisition. Incorporating Customer Data Platform (CDP) software is the only way for AI tools to learn and expand their successful application in subsequent campaigns. You can learn more about data analytics and data science projects at ProjectPro.

Big data analytics involve first-hand and secondary sources, such as location or weather data. They rely heavily on vast amounts of customer-generated data, the company’s financial statistics, and operational data such as logistics and CRM feedback.

Your CDP will need to be connected to vast volumes of data to produce any valuable results, including:

  • In-store data
  • Buying patterns
  • Sales data
  • Web data and browsing feeds
  • Global web analytics
  • Loyalty and survey data
  • Customer service
  • Ad accounts data
  • Marketing automation software data
  • Mobile app, eSIM, and IoT data

For your AI marketing to be effective, it’s crucial to work with specialists that can train and quality-control these tools. Moreover, your software needs to be continuously maintained to optimise its inputs and eliminate errors. Otherwise, the resulting analytics could be borderline unusable.

Data maintenance determines whether the data is relevant, accurate, consistent, and transparent. Marketing teams work directly with data management team members to establish better pathways of data implementation.

Integrating Software

A more integrated approach to digital marketing will likely maximise your AI tools’ effects. Rather than solely relying on stand-alone solutions, digital marketers can yield better results by incorporating integrated machine learning and task automation applications into their existing strategies.

In addition to optimising output in relation to labour time and costs, integrated AI marketing applications can assist in improving other crucial elements of market research and strategy planning, such as segmentation and ROI attribution.

The combined efficacy of digital marketers and AI tools is determined by the types of platforms incorporated into the larger marketing scheme. Presently, digital marketers implement compound systems, i.e., software that combines automation and machine learning on multiple levels of:

  • Data collection
  • Analytics
  • Decision support
  • Communications
  • Customer personalisation

Managing Customer Interaction

One of the most commonly used types of marketing AI is communications software aimed to automate certain stages of customer service engagement like chatbots, email automation, NLP-based content creation, and more. Chatbots can help manage a significant bulk of requests, allowing customer support agents to handle more complex queries that cannot be automated.

Improving Personalization

You can better understand individual user behaviours, preferences, and needs with the proper application of marketing AI tools and automation. This enables you to tailor promotional messages and reach out to your target audience at appropriate times.

Finding a natural balance in customer interaction is essential—you wouldn’t want to overwhelm them with too much-personalized content. On the other hand, too much automation can be perceived as too detached and impersonal and alienate customers.

Major solutions, such as implementing FHIR systems, can also help marketing. That’s because they store a lot of data that can easily be segmented and used for marketing purposes. Of course, some sensitive data cannot be attributed to this.

Media Buying

One of the most labour-intensive tasks in digital marketing is manual ad placement. Traditionally, marketing teams analysed customer preferences and engagement to develop a targeted messaging and advertising strategy. However, this method can lack the much-needed efficiency when decisions have to be made based on real-time analytics.

This is where programmatic media buying comes in. The decision to buy ad spaces is made automatically based on customer data such as intent, location, and browsing history. This allows timely and effective messaging to retain buyers and bring back at-risk customers.

Challenges of Using AI Marketing

For all its beneficial effects, AI marketing is far from flawless. Technology may constantly be evolving, but it’s still years away from wholly replacing the traditional systems of human-driven marketing.

Training Times

The most obvious challenge in implementing these systems is the lengthy training process. AI tools are capable of producing any noticeable value after they have processed enormous amounts of data. These applications need to do the following:

  • Operate well within the context of your venture (as well as the larger framework)
  • Learn how to interpret data
  • Respond to input, etc.

Privacy Issues

The problem of data mining and unethical use of private information has been at the forefront of digital security for years. When setting up an AI platform, specifically its CDP segments, it’s vital to establish legal and ethical privacy standards. Certain AI tools are not trained to operate within specific security standards, even if you don’t mean to violate any guidelines.

Trust in your brand and overall compliance depends on the responsible management of data collection and its further application.

Configuration

Although the tools are constantly improving, AI marketing still requires a lot of proficient integration. Any application, especially tools with relatively low levels of intelligence, works best when combined with human expertise. For instance, specific customer communications software can come across as too rigid, unhelpful, or irregular, so its application should be motivated by supporting the existing systems rather than replacing them or diluting their performance quality.

Conclusion

The landscape of AI marketing solutions is incredibly dynamic. By now a permanent fixture in the tool set of every digital marketer, AI applications present a cost-effective answer to the problem of adapting to the highly competitive online marketing field and its ever-changing trends.

AI cannot be treated as a complete substitution for your marketing efforts. Despite its remarkable growth rate, AI marketing has limits regarding complex task management. While there are plenty of methods for effective AI implementation, the field is still too scattered to produce any universally applicable strategy. These tools can accelerate and fine-tune your output.

Still, quite a significant number of these applications are already indispensable and have, in many ways, replaced certain traditional stages of marketing. When embracing AI into your practices, it’s crucial to understand how rapidly this industry is changing. You will need to accept the adaptable nature of AI solutions and trends while constantly learning how to customise it for your framework with each new development.

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David Trounce
David is a CRO and marketing consultant. He has a background in business management and also writes for Business.com, GrowMap and Born2Invest.
+61 0414 3555 22
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