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
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
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
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.