Artificial Intelligence, Machine Learning, and Data Science are confusing topics where there is a lot of hype and very little expertise. At Citadel Analytics we want to separate the hype from reality and better educate business owners, managers, and executives on what these technologies can actually do for your business.
In this blog post we will cover the 4 main benefits of using Machine Learning in your marketing processes.
Massive data input from unlimited sources
Machine Learning has the ability to consume virtually unlimited amounts of very detailed data to constantly analyze, review, and enhance your marketing in real time. Once your Machine Learning model is trained from your existing marketing data, it can identify the most relevant metric(s) that accurately predict future orders, engagement, retention or nearly any other KPI you choose.
Machine Learning’s ability to process vast amounts of data from nearly any data source both quickly and accurately is what makes it such a powerful marketing tool.
Using Machine Learning to accurately measure virtually any KPI that your business needs to succeed can help your business focus on what will give you the biggest bang for your buck.
Rapid processing, analysis, and predictions
The speed at which machine learning can consume data and identify relevant data makes the ability to act in real time a reality. Computers are vastly superior in how much data can be processed and the accuracy of the data-based predictions.
For example, machine learning can constantly optimize and enhance the next offer for your customer, so what your customer might see at 10 am may be different than what that same customer sees at Noon and then sees again at 4 pm. Being able to constantly analyze “what is working” you can engage your customers with ever improving marketing offers – greatly enhancing your ROI.
Ever Improving Conversion Rates
Marketing with Machine Learning can learn quickly what can help make your customers buy from you, right now. This is critically important when trying to optimize an offer to your potential customers. You can see, in real-time, what conversion offers, triggers, pages, promotions, etc. are working and now can start to understand WHY they are working.
This enables your marketing message to be far more dynamic and adaptable than ever before. For example, new information processed through our Machine Learning models may suggest that potential customer A will buy if you quickly offer that customer 10% off, where customer B will likely buy with no additional offers needed. This individualized marketing can lead to far better customer experiences, loyalty, and significantly higher conversion rates.
Learning from past behaviors and outcomes
A major advantage of machine learning is that our models learn from past predictions and outcomes, and continually improve their predictions based on new and different data.
By continually trying to get ever better outcomes our Machine Learning models self-optimize your marketing for the best results.
For example, let’s take a retailer that analyzes sales patterns using our Machine Learning models. The Machine Learning models learn that sales tend to drop 3.1% when the weather is nice outside but sales climb 4.3% when the weather is stormy outside. Maybe the store is near a beach and thus when the weather is sunny they go to the beach and when it is raining they go to the mall. This may sound like a basic conclusion but by being able to back up a “hunch” with actual data metrics you can now plan for staffing more effectively, better manage inventory, and possibly even adjust your stocking patterns to take advantage of the new data knowledge.
Another example is with Digital Marketing. Because Digital Marketing is the most measurable marketing type because of all of the data collected it can also benefit the most from our Machine Learning models. By analyzing all of this data you will be able to see not only what is working but why. It may discover that an ad campaign that is not performing well in Texas is performing incredibly well in North Carolina. You can then adjust the ad in Texas to a better performing ad and keep the high performing ad in North Carolina. Or you may find that a certain marketing campaign performs well with younger women when combined with a “free trial” offer but older women perform well with a “15% offer” instead of a free trial. This enables you to further refine and segment your marketing for enhanced ROI.
The Future is Machine Learning and Data
With all that Machine Learning is capable of there is no doubt that Artificial Intelligence, Machine Learning, Data Science, and Big Data are the future of nearly every business and every industry.
Data is everywhere and is quickly becoming the most valuable asset any company has. However, like any business asset – data is only valuable if you use it correctly.
Contact us for a free evaluation of your data and machine learning needs and we will show you how we can help you grow your business and increase the efficiency of your operations.