The Power of One-to-One Marketing with AI: An In-Depth Look
The one-to-one marketing approach is considered effective at retaining customers. One-to-one marketing with AI can be so much more.
To keep up with other competitors in the business sector, not using technology is not an option. Artificial Intelligence, or AI, is one of the technologies that has received a lot of attention lately. According to Tidio, roughly 83% of companies consider using artificial intelligence as a high priority in their business strategy.
Moreover, in this age where everyone demands immediate results, using AI in the marketing and sales department is convenient. In fact, the same article from Tidio stated that AI algorithms increase leads by 50%. It really helps in improving engagement rates without too much cost.
One-to-one marketing is one of the marketing strategies that benefits from AI. This article will discuss it in greater depth.
What is One-to-One Marketing?
One-to-one marketing is a personalized marketing campaign where a company reaches out to customers individually rather than as a large group of people. Basically, the essence of one-to-one marketing is to make customers feel special.
In fact, the demand for personalized marketing increased during the pandemic. According to McKinsey, 71% of consumers expect personalization, and 76% of them get frustrated when they don’t find it.
Incorporating AI into One-to-One Marketing
This “close relationship” between brands and customers can be developed with the help of technology. For example, AI automation tools can read through consumers’ digital prints and use them as a prediction of their next purchase.
In addition, AI has the potential to increase consumer engagement rates with chatbots and virtual assistants. This is because, unlike humans, they are available 24/7 and are able to answer simple technical questions from consumers.
Step-by-Step Guide to Implementing One-to-One Marketing with AI
While understanding consumers is the main focus of one-to-one marketing, it still needs a comprehensive strategy to achieve the desired result. Exadel stated that personalization in marketing has a clear implementation pattern. We will discuss it further below.
Client Identification Process
When you are just starting out, it is important to identify your target audience. Gather your consumer’s data to collect information about your consumer’s purchasing habits. This step is crucial to decide what kind of marketing strategy you can carry out later.
There are many ways to collect your consumers’ data, for example, using AI-powered consumer insights. According to Mage Plaza, it can analyze the market through online content across the internet effectively. Then, you should be able to visualize your target consumer, making it easy for your company to do customer segmentation.
After identification is complete, only then can you create customer groups based on their similarities. HBR stated that machine learning AI is useful in combing out large quantities of data, thus helping in narrowing them down into smaller segments.
There are several types of customer segmentation, according to Lytics, and you must not settle for one type forever without evaluating it periodically. One of the models is a needs-based model, which divides customers according to their problems and needs.
For accurate personalization, the data from previously segmented customers will be analyzed. For instance, AI-powered sales forecasting can predict what your customers will buy next and help define what product to promote next. HBR also added that using AI can even determine which customers are most likely to be persuaded into a purchase.
Apart from that, personalized ads, segmented emails, and push notifications are also effective ways of communicating with customers.
Catered recommendations are futile if the customer’s journey is not seamless. Aside from a well-created UI design, using AI can help deliver more personalized ads and offer relevant products. Data gathered and segmented in this way makes this possible.
For instance, using AI-enabled bots is useful in assisting customers’ shopping experiences. It can keep customers from abandoning their online shopping carts with periodic reminders. Another example is using chatbots to handle customers’ requests 24/7.
Adjusting the Strategy
As market trends and customers’ demands keep fluctuating, it is unwise to stick to one kind of strategy, even though it is powered by AI. Due to the use of AI, which relies on updated customer information, you should review the information continuously. You can expect changes to ensure your company succeeds at every opportunity.
That being said, investing in one-to-one marketing using AI can be beneficial for your business. A successful one-to-one marketing strategy aims for a long-term benefit rather than a short one. Combined with the aid of AI, the feeling of intimacy from one-to-one marketing is proven effective at increasing a company’s revenue. It also intensifies customer outcomes, leading to retention and loyalty.