Artificial Intelligence: The new face of marketing

Deciding to buy cosmetics is simple, but choosing the right products can be difficult. You need to find makeup that complements your skin tone and personality.

With so many shades and options available, it’s easy to feel overwhelmed. This confusion isn't unique to you—it’s something everyone experiences when shopping for cosmetics.

You decide to shop online and visit your preferred brand's website. But soon, you’re overwhelmed—what shade should you choose? Will it suit you? Could it cause skin problems? Worry sets in. Suddenly, a window pops up: "Shall I help you?" asks the chatbot.

The chatbot begins interacting with you, asking questions to which you provide answers. It quickly identifies your needs, including your skin tone, and suggests the most suitable one among cosmetics. Your confusion fades away, and you promptly place your order.

Imagine leaving the website without purchasing the products, despite the chatbot's helpful suggestions. Then, an email or message appears, gently reminding you. They haven't forgotten about you. They understand your preferences and will continue to send you tailored images and information about products that suit you, ensuring you stay engaged.

Marketing is undergoing a revolution. What once seemed complex is now more straightforward than ever. By analysing data from millions of customers, businesses can pinpoint individual preferences and provide exactly what each person needs. This level of personalisation was once impossible for humans alone. But with the rise of Artificial Intelligence (AI), the entire landscape of marketing is transforming, allowing companies to cater more precisely and efficiently to their customers.

"Tell me what you need, and I'll assist you."

The chatbot on the website is powered by artificial intelligence (AI). It can engage with thousands of customers simultaneously, understanding their preferences, analysing them, and recommending the best products. It filters through numerous options to find those that suit you best.

The brilliance of AI lies in its ability to perform these tasks with incredible speed and accuracy—far beyond what we could imagine—making it an invaluable tool in modern customer service.

The power of Artificial Intelligence

‘The Economist’, a leading magazine, utilised artificial intelligence to boost its circulation. AI delved into websites and applications, tracking the individual interests of readers.

It analysed their reading habits, preferences, and the time they spent on reading. This exploration opened up a vast data mine.

Based on this data analysis, ‘The Economist’ implemented comprehensive reforms, resulting in approximately 3.6 million new readers.

Data equals money

AI is revolutionising market competition. The traditional approach of slowly understanding and establishing a presence in the business market is now obsolete. In today’s technological era, the marketing goal is to swiftly penetrate, capture, maintain, and expand the market.

Businesses have realised that every customer data point is crucial. The mantra is simple: data equals money. They take all customer interests seriously and strive to serve them to the best of their ability.

Companies aim to retain customers and encourage them to purchase more products. Instead of a passive approach of letting any customer come and buy products, businesses now use technology to understand each individual who walks in.

Let’s explore some of the ways artificial intelligence is transforming modern marketing.

Deep Learning: Deep learning equips computers with various skills. It teaches them to understand text, images, and voice, and to generate answers, suggestions, and recommendations based on that understanding.

In depth data analysis: When we order products on online portals, we often see suggestions like “See what other customers ordered with this product” or “You may also like these products.” This is because artificial intelligence deeply learns customer habits and continuously analyses the data. AI then automatically makes recommendations based on individual interests.

Recognise and respond to voice: Today’s mobile apps can recognise your voice and respond to your needs. This means you don’t need to type anything to execute a command. Your voice alone can activate the AI.

Find the right customers and target them: When you visit a website to order products, you might later see ads for similar items on Facebook or Google. These platforms know which websites you visit, understand your interests, and deliver relevant ads to you.

Chatbots: Chatbots can interact with customers, assisting with ordering, tracking products, and clearing doubts.

Dynamic pricing: Artificial intelligence helps determine product prices by considering market demand and availability. Have you noticed how airfares fluctuate with demand? Online portals also use AI for dynamic pricing.

(The author, Dr. Sudheer Babu, is an entrepreneur, writer, poet, and management consultant. He is the founder and managing director of Kochi-based De Valor Management Consultants Private Limited. Email: [email protected])