How can Consumer-Oriented Businesses Apply Gen AI to their Marketing (Part 1 of 2):
AI in Consumer Businesses
Have you officially launched AI initiatives in your business?
According to a McKinsey report from 2023, gen AI could contribute up to $4.4 trillion in annual global productivity and marketing and sales could reap an estimated 75 percent of that value. The productivity of marketing alone due to gen AI could increase between 5 and 15 percent of total marketing spend, worth about $463 billion annually.
There are so many ways in which consumer-oriented businesses could be using Gen AI to augment their marketing efforts. Here are just three of many:
Hyper-Personalisation
Personalisation is nothing new, however traditionally, personalisation efforts were limited to broad segments and basic demographic data. Today, thanks to Gen AI, any business can now personalise their customer experience, from writing ad copy and creating bespoke email newsletters, to drafting customer care responses via trained AI chatbots, virtual shopping assistants, language translations, promotional offers and even adaptive pricing. Effectively, AI has enabled brands to personalise content at an individual level, considering nuanced consumer behaviours, preferences, and interactions in real-time, and businesses can hyper personalise customer engagement across many channels with Gen AI-created text, images, campaigns, offers, and more.
“Why do you need hyper-personalisation”, you say? Simple. Businesses who personalise their content, messages and responses to consumers have a much higher engagement rate, conversion rate, customer satisfaction score and life-time value than those who don’t. Just ask Netflix and Amazon.
Customer and Market Research
AI is also driving an increase the pace of new product, or new service development and speedier go-to-market through customer and market research. Imagine being able to segment consumers across various countries, interests, and behaviours, then overlaying that with the competitive landscape, to come up with new and innovative products and services which might best serve your customers.
From consumer trend analysis to creative concepts and products, AI can facilitate rapid prototyping of new ideas, generate content, and even design products that resonate with target audiences.
Data Mining and Analytics
There is no shortage of data in any organisation. Every department has analysts who can use SQL to churn out data sets, then analyse in Excel. Tools like Power BI make that even easier. However, data still held across different silos. Which means having cross-functional analytics capabilities is very much still a pipe-dream. Enter Mr. GenAi. It can help aggregate data from various sources, identify and summarise issues and provide actionable insights to decision-makers. But that’s just structured data. AI also has the ability to analyse vast amounts of unstructured data, such as social media interactions, reviews, and chat transcripts, allowing marketers to gain deeper insights into customer needs and behaviours.
These are just three of many ways consumer businesses can harness the power of Generative AI to augment their marketing. What are some of the ways you’ve applied AI to your business?