How to Use AI in Marketing & Get Results (The Right Way)

Artificial intelligence (AI) has revolutionized the way businesses interact with customers and achieve their marketing goals. With their powerful data analysis capabilities AI tools empower marketers to personalize customer experiences, optimize campaigns and drive engagement. 

Yes, the impact of AI on marketing is truly remarkable and its adoption is rapidly gaining momentum across the board. By getting to know the ins and outs of how AI can complement your marketing efforts, you can not only stay competitive but also position your brand at the forefront of this innovation

How to use AI in marketing (6 Ways)

From personalized customer interactions to data-driven insights, AI is reshaping marketing strategies across diverse fronts. Let's explore some impactful use cases that highlight the myriad ways AI is revolutionizing the marketing landscape. 

Customer segmentation and targeting

AI analyzes vast datasets to categorize customers based on behavior and preferences, enabling targeted and personalized marketing campaigns. 
 
Most well-known e-commerce platforms use AI to analyze customer purchase history, browsing behavior and demographic data. The platform then segments customers into categories such as "frequent shoppers," "occasional buyers," and "new customers." Marketers can tailor campaigns for each segment, offering personalized promotions and product recommendations. 

Personalized content recommendations

AI algorithms study user interactions to suggest personalized content, enhancing user engagement and satisfaction. 
 
Streaming services like Netflix leverage AI to analyze user viewing habits. Based on this data, the platform recommends movies and TV shows that align with individual preferences. This personalized content recommendation system keeps users engaged and encourages prolonged platform usage.

Predictive lead scoring

AI predicts the likelihood of leads converting into customers, allowing marketers to prioritize high-value leads and optimize conversion strategies. 
 
In B2B marketing, AI can analyze historical data on leads that resulted in conversions. It then assigns a predictive lead score to new leads based on similarities to past successful conversions. This helps sales teams focus their efforts on leads with a higher likelihood of conversion.

Dynamic pricing optimization

AI adjusts pricing based on real-time market conditions, competitor pricing and customer behavior, maximizing revenue and competitiveness. 
 
Imagine an airline using AI to dynamically adjust ticket prices based on factors like demand, competitor pricing and historical booking patterns. This ensures that prices are optimized for profitability while remaining competitive in the market. 

Email marketing automation

AI automates email marketing campaigns, personalizing content and delivery times for improved open and click-through rates. 
 
Many online retailers employ AI to analyze customer behavior, such as purchase history and website interactions. The AI-driven system then sends personalized email campaigns, recommending products based on the customer's preferences and buying patterns. 

Social media sentiment analysis

AI analyzes social media conversations to gauge public sentiment, helping businesses adapt their marketing strategies in real-time. Using a trusted AI tool here can help you gather and measure all your real-time data in one place.

Many popular brands use AI to monitor social media mentions and comments. If sentiment analysis reveals a spike in negative sentiment related to a specific product feature, the marketing team can swiftly adjust their messaging or launch a targeted campaign to address customer concerns.

Also Read: Social media sentiment analysis: An easy guide

New AI technologies and their marketing use cases

AI technologies bring a spectrum of possibilities to marketing, each with its unique capabilities. Let's explore some key types of AI, understanding how they revolutionize the marketing landscape along with notable brand use cases. 

1. Machine learning (ML)

ML endows computer applications with cognitive abilities, allowing them to assimilate knowledge from the information they encounter. As these systems process substantial datasets, their proficiency in predictive analytics and personalized recommendations is amplified. 

For example, Amazon uses ML to look at your past purchases and browsing habits. It's not just about suggesting things; it's about suggesting things you're likely to consider buying based on your history.  

Also Read: Identifying your customer's purchase intent using AI 

2. Computer vision

Computer vision serves as the optical faculty for applications granting them the capability not only to perceive but also comprehend visual information intricacies. It involves imparting them with the ability to recognize shapes, colors and patterns — a fundamental aspect of bestowing visual intelligence upon them. 

For example, Pinterest, renowned for its visually immersive platform, harnesses computer vision to transcend conventional image display. By ingeniously transforming images into search queries, Pinterest enables users to explore similar items effortlessly.  

3. Voice search optimization

Think of voice search optimization as teaching applications to understand our voices when we talk to them. It's like making sure they "get" what we're saying, so when we ask a question or provide detailed instructions, they know exactly how to respond. 

For example, Domino's Pizza was a pioneer in this. They made it possible for people to order pizza just by talking to their devices. So, when you're feeling hungry, you can literally say, "Hey, order me a pizza," and Domino's voice search optimization makes it happen. 

4. Augmented reality (AR)

In AR digital components seamlessly amalgamate with the physical environment, creating immersive experiences. This technology is particularly adept at facilitating nuanced product visualization, elevating the overall interaction between the digital and real worlds. 

For example, IKEA has leveraged AR to redefine the furniture shopping experience. Through their AR app, customers gain the ability to virtually place furniture items within their personal living spaces.  

Also Read: How leading retailers are bringing digital experiences in-store  

5. Blockchain

Blockchain, known for its secure and transparent framework, intersects with AI in marketing, amplifying trust and traceability. By leveraging AI and blockchain together, marketers can enhance the integrity of transactions and ensure transparency in complex marketing campaigns. This integration fosters a more secure and accountable ecosystem, shaping the future of trustworthy marketing practices. 

For example, Unilever strategically adopted blockchain to elevate transparency within its advertising supply chain. This application serves as a robust shield against fraudulent activities, ensuring the quality and veracity of ad deliveries. 

By understanding and harnessing these AI technologies, brands can not only stay competitive but also redefine their marketing strategies. But AI, like most technologies, comes with its own set of advantages and disadvantages.

Further read: 4 Best Examples of AI in Marketing

Four applications of AI in marketing

AI is reshaping how businesses approach their marketing strategies. For instance, state-of-the-art AI tools are helping businesses improve customer interaction, make content creation smoother, predict consumer trends accurately and better understand customer needs. 

According to a Gartner study, 63% of marketing leaders plan to increase their investment in AI by the end of 2023 as compared to just 40% in 2020. This surge in interest is driven by the undeniable results that AI is able to deliver. In fact, a recent survey showed that 70% of marketers affirm that AI has significantly improved their marketing ROI. With AI investments on the rise, it's about time we explore the specific types of AI that are revolutionizing marketing strategies.  

1. Chatbots

Chatbots or intelligent conversational agents are capable of simulating human interactions, offering a seamless and personalized experience for users. From answering routine questions to facilitating transactions, chatbots streamline customer engagement, contributing to enhanced satisfaction and efficiency. By using the right tool you can automate 80% of all your digital interactions.  

Also Read: 5 ways to improve customer response time with AI 

2. Content generation tools

These tools leverage natural language processing (NLP) and machine learning algorithms to comprehend user preferences and create tailored content.  

NLP is the technology behind machines' ability to understand and interpret human language. In marketing, NLP is a game-changer for sentiment analysis. By gauging customer reactions from reviews and feedback, businesses can adapt their strategies, ensuring a more attuned and responsive approach. 

It doesn't just stop there. Whether it's crafting blog posts, social media updates or product descriptions, AI-driven content generation ensures efficiency and relevance, allowing marketers to focus on strategy and creativity. 

Pro Tip: With Sprinklr AI+, generate content across channels, ensure faster replies with response simplification and modification, and simplify content reviews with AI-powered grammar and tone checks. 

3. Predictive analytics

In predictive analytics, AI algorithms analyze historical data to foresee future trends and behaviors. In marketing, this translates to a game-changing ability to anticipate customer preferences, optimize campaigns and make data-driven decisions. By understanding the likelihood of specific outcomes, businesses can fine-tune their strategies for maximum impact, ultimately improving ROI. 

Source  

Pro Tip: Sprinklr AI analyzes live data to spot problems in need of attention — such as missed SLAs by a team or region, or interactions with low predicted CSAT — and generates automatic alerts for supervisors. 

4. Image recognition

This AI application enables machines to interpret and analyze visual content, offering insights into brand visibility and sentiment and even enabling personalized advertising. Imagine tracking your brand's logo across social media platforms — image recognition makes it possible, providing valuable data for strategic decision-making. 

Pro Tip: Sprinklr’s AI-powered Visual Insights captures relevant mentions in digital visuals, identifying high-performing user generated content (UGC) or other channel content so your teams can report, measure and even repost more content than ever — not just text-based content — across 30+ digital channels.  

Now let's take a look at how AI is being leveraged in the current marketing scenario.  

Also Read: 4 brands that make the most of artificial intelligence  

Pros and cons of using AI in marketing

AI in marketing offers numerous benefits but comes with its set of challenges. Let's weigh the pros and cons of navigating the nuanced landscape of AI adoption to improve marketing campaigns.

Pros

• Enhanced personalization: AI allows for in-depth customer analysis, enabling highly personalized marketing strategies that resonate with individual preferences 
• Efficient data analysis: AI processes vast datasets swiftly, providing actionable insights for data-driven decision-making and more effective campaigns 
• 24/7 customer engagement: AI-powered chatbots offer round-the-clock customer support, ensuring instant responses and improved user experiences 
• Cost efficiency: Automated processes driven by AI reduce manual efforts, leading to cost savings and improved operational efficiency 
• Dynamic content generation: AI tools generate dynamic and tailored content, streamlining the content creation process and ensuring relevance 

Cons

• Data privacy concerns: The use of AI involves handling extensive customer data, raising concerns about privacy and the ethical use of information
• Implementation costs: Integrating AI into existing systems can be expensive, especially for small businesses with limited budgets
• Overreliance on technology: Excessive dependence on AI may lead to a loss of the human touch in marketing, potentially alienating certain consumer segments
• Learning curve: Training teams to effectively use AI tools requires time and resources, posing a challenge for organizations aiming for seamless adoption
• Algorithmic bias: AI systems may inherit biases present in the data they are trained on, leading to skewed decision-making and unintended consequences
• Security risks: AI systems are vulnerable to cyber threats and breaches may expose sensitive customer data, eroding trust

AI-driven marketing strategy and best practices

Crafting a robust marketing strategy harnessing the power of AI requires a thoughtful approach. Here are five essential tips to ensure a solid foundation for an AI-driven marketing strategy:

1. Data quality and integration

Begin by assessing the quality of your data. Are there inconsistencies, errors or outdated information? Addressing these issues is fundamental as AI algorithms heavily rely on accurate and reliable data.
 
Seamless integration involves consolidating data from various sources — customer interactions, social media, and website analytics — to create a unified and holistic view. This comprehensive dataset forms the foundation for AI-driven insights and decision-making.

Download Free Report: 3 Steps to Transform Your Customer Experience with AI-Driven Insights 

2. Define clear objectives

Start by identifying specific marketing goals that align with your overall business objectives. For instance, if the aim is to enhance customer engagement, define what success looks like — increased interaction rates, longer time spent on your platform, etc.  
 
Clearly articulate how AI will play a role in achieving these objectives. If the goal is to optimize campaign performance, outline the key metrics you aim to improve, such as click-through rates or conversion rates. 

3. Invest in skill development

AI tools may seem complex, but investing in skill development is an investment in the future success of your marketing efforts. Conduct workshops or training sessions to familiarize your team with the basics of AI and how it applies to marketing.  
 
This can include understanding AI terminology, hands-on experience with AI tools and discussions on practical applications within your specific marketing context. Continuous learning ensures your team stays up-to-date and can adopt newer strategies easily. 

4. Test and iterate

Recognize that the marketing landscape is constantly evolving and that consumer preferences change. Regularly test AI algorithms to assess their effectiveness in achieving defined objectives.  

This involves A/B testing different variations, tweaking parameters and analyzing performance metrics. Iteration is a continuous process — based on test results, refine your AI models to stay responsive to shifts in market trends and customer behavior. 

5. Prioritize transparency and promote ethical practices

Transparency is key to earning and maintaining customer trust. Clearly communicate how AI is utilized in your marketing processes, emphasizing its role in enhancing user experience and delivering more personalized content.  

When it comes to customer data, explicitly outline how data is collected, used and secured. Upholding ethical standards involves ensuring data privacy, avoiding discriminatory practices and being transparent about the goals of AI-driven initiatives. This commitment to transparency builds a positive perception of AI as a tool that benefits both the business and its customers.

Top 5 AI marketing tools to use in 2024

Here are a few AI-powered marketing tools used by marketing teams worldwide: 

1. Sprinklr Marketing

Sprinklr Marketing is a comprehensive platform that enables you to efficiently handle marketing and advertising campaigns across various channels, ensuring a seamless and integrated customer experience. 

Key features:

• AI-powered personalization: Sprinklr Marketing excels in creating personalized content using AI. It tailors marketing messages to individual preferences, enhancing customer engagement and fostering a deeper connection between your brand and its audience. 
   
• Campaign effectiveness measurement: The platform provides robust tools for measuring the effectiveness of marketing campaigns. Through analytics and AI-driven insights, you can gain a clear understanding of how well your campaigns are performing, facilitating data-driven decision-making. 
   
• Opportunity identification: Sprinklr Marketing goes beyond traditional metrics, employing AI to identify untapped marketing opportunities. By analyzing data and customer behaviors, it helps you uncover areas for growth and optimization within their marketing strategies.

2. Jasper

Jasper is an advanced AI-powered copywriting tool designed to assist businesses in generating high-quality content across various formats. It utilizes artificial intelligence to streamline content creation for blog posts, social media and email marketing campaigns. 

Key features:

• Content diversification: Jasper excels in creating diverse content types, ensuring businesses have the flexibility to engage their audience through various channels 
   
• AI-powered creativity: The tool uses cutting-edge AI algorithms to spark creativity, generating content that resonates with the target audience 
   
• Time efficiency: By automating the copywriting process, Jasper saves businesses time, allowing them to focus on other critical aspects of their operations 

3. Grammarly

Grammarly is a leading AI-powered grammar and spell checker, providing businesses with a tool to produce polished and error-free content. Its AI capabilities extend to identifying and rectifying grammar mistakes, spelling errors and punctuation errors. 

Key features:

• Precision in writing: Grammarly ensures written content is free from grammatical errors, enhancing overall writing precision 
   
• Contextual suggestions: The AI-driven platform offers context-specific suggestions, improving the flow and clarity of the content 
   
• Integrations: Grammarly seamlessly integrates into various platforms, making it a versatile solution for professionals across different industries 

4. Drift

Drift is a conversational marketing platform that leverages AI to facilitate real-time conversations between businesses and their website visitors. The platform goes beyond traditional chat tools, using AI to identify and qualify leads before connecting them with the appropriate sales or support personnel. 

Key features:

• Lead identification: Drift's AI capabilities identify potential leads, ensuring businesses engage with prospects at the right moment 
   
• Personalized interactions: The platform tailors conversations based on user behavior, providing a personalized experience for website visitors 
   
• Efficient lead routing: Drift's AI ensures leads are efficiently routed to the most suitable team member, streamlining the conversion process 

5. HypeAuditor

HypeAuditor is an AI-powered influencer marketing platform offering businesses a comprehensive solution for discovering and managing influencers. Through the application of AI, HypeAuditor analyzes influencer data, enabling businesses to identify influencers who align with their brand's target audience. 

Key features 

• Influencer data analysis: HypeAuditor employs AI algorithms to analyze vast amounts of influencer data, ensuring businesses make informed decisions when selecting influencers 
   
• Audience alignment: The platform helps identify influencers whose audience aligns with the brand's target demographic, maximizing the impact of influencer marketing campaigns 
   
• Campaign effectiveness: AI-driven insights enable businesses to gauge the effectiveness of influencer marketing efforts, refining strategies for optimal results 

Supercharge your marketing efforts with AI

In a data-driven world, leveraging the capabilities of AI in marketing isn't a choice, it's a necessity for businesses aiming to grow and innovate. As AI continues to advance, new opportunities arise for creating more efficient, personalized and captivating marketing strategies. 

Embracing AI ensures not only competitiveness but also command in shaping the future of customer engagement and achieving business success. 

If your business is ready to embark on this transformative journey, Sprinklr Marketing is a reliable solution that empowers you to navigate the evolving marketing landscape with precision.  

Book a personalized demo today!