While analytics tools have been providing insightful marketing information for years, today’s AI tools break new ground by discovering previously unachievable insights, predicting emerging trends and delivering highly personalised experiences. In this post, we take a closer look at how AI-powered analytics can enhance your digital marketing strategies.
Contents
- Finding hidden patterns in customer data
AI-powered analytics tools are far better at finding patterns in data than human analysts. Using machine learning, they can quickly analyse vast datasets to identify subtle connections, emerging trends and repeating behaviours that might previously have gone unnoticed. As a result, they can spot changes in customer preferences as they emerge and detect new audience segments. For instance, if AI analysis of browsing data shows that customers who frequently look at eco-friendly products are more likely to purchase limited-edition goods, marketers could adjust their strategies to boost conversions in that segment of the audience.
- Predicting market changes
The latest AI forecasting tools can now accurately predict changes in the market. By analysing historical trends, consumer attitudes and external events, and integrating new data in real-time, these tools enable marketing teams to anticipate changes in buying habits as they begin to evolve. As a result, companies can plan their campaigns earlier knowing where the market is heading. For example, if you were a wellness brand, AI tools could combine seasonal interest data, historical sales trends and social media conversations to predict that people will start to buy home fitness equipment in the New Year. This would allow you to promote these products early enough to capitalise on the growing demand – and before your competitors catch up.
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- Hyperpersonalisation
Research by Forbes shows that 81% of consumers prefer businesses that offer personalised experiences . Hyperpersonalisation takes this further, delivering fully individualised experiences where content and recommendations are tailored to each customer.
In online marketing, one of the most important elements of personalisation is recommending the right products for each user. The latest AI-powered recommendation engines are making hyperpersonalisation a reality. By analysing an individual’s browsing history, purchase patterns, demographics, and real-time on-site behaviours – along with data from similar individuals – they can suggest products and content that are highly relevant to that user.
Moreover, they can also help marketers provide the right messages and identify the best times and channels to send them. As a result, these customers can receive marketing that is perfectly aligned with their interests, behaviours and lifestyles.
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- Real-time campaign optimisation
While marketing strategies can look great on paper, in reality, their success often depends on how well they perform in practice. Ensuring they meet their objectives and that budgets aren’t wasted often means trawling through data and making tweaks mid-campaign.
This process is now much easier thanks to AI-enabled tools that continuously monitor campaign performance in real time. AI-enabled monitoring tools allow businesses to:
- Continuously track key metrics, such as click-through rates, engagement and conversions.
- Identify areas of poor performance in real-time.
Importantly, they also recommend improvements, for instance, if a tool detects that video ads significantly do better than image ads for a particular user group, it will suggest focusing on video content to boost engagement. With these insights delivered in real-time, businesses can act swiftly to optimise their campaigns.
- Improved resource and budget allocation
Marketing campaigns are comprised of various elements, each requiring a portion of the campaign’s overall resources and budget. Deciding how to allocate these effectively can be a challenge. Get it wrong, and the most effective parts of the campaign could be underfunded while the less impactful areas eat up resources.
Today, AI tools help marketers allocate budgets and resources more effectively. The development of data-driven prioritisation algorithms means teams can:
- Assess the potential ROI of each campaign element.
- Rank campaign components based on their predicted outcomes.
- Allocate budgets and resources where they will deliver the highest returns.
As a result, businesses can allocate their budgets and resources in ways that deliver the best ROI while providing optimal efficiency.
- Increasing customer lifetime value
While marketing teams will be aware that it is less expensive to retain customers than acquire new ones, the challenge lies in keeping customers engaged and increasing their spending. Through AI-powered customer value modelling, teams can identify the key characteristics, behaviours and preferences of their existing customers.
Armed with these insights, they can then predict which engagement strategies, e.g., personalised communications, tailored rewards or strategic timing, will be most effective at encouraging repeat business and strengthening brand loyalty.
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- Unifying data
AI is able to merge data from various internal and external sources, including data silos, social media, email and even chatbot interactions. This provides businesses with a unified customer profile across all touchpoints. As a result, marketing teams are better placed to deliver their messaging consistently across all channels, providing customers with a more cohesive experience while reinforcing key campaign messages.
Conclusion
From discovering hidden patterns in data and predicting evolving market trends to optimising campaigns in real-time and delivering truly personalised experiences, the latest AI-powered analytics tools empower businesses to deliver more effective digital marketing strategies. Moreover, they enable businesses to allocate resources more effectively, boost customer loyalty and deliver the right messages at the right time via the right channels.
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