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AI analytics: How it’s transforming marketing

There’s one area of AI that marketers are enthusiastically embracing because of how it can support marketing strategies and campaigns. It’s AI analytics.

Machines are meant to make the lives of humans easier and very often they do (big shout out to the dishwasher and robo-vacuum cleaner).

But in most cases, our adoption of machine technology is precipitated by some degree of fear and mistrust. We’re seeing that right now with artificial intelligence (AI).

AI refers to machines mimicking human cognitive functions such as learning and problem solving, and practically every industry is currently experiencing some kind of AI transformation – and marketing is no exception.

Yet, no matter what you feel about AI, there’s one area of AI that marketers are enthusiastically embracing because of how it can support marketing strategies and campaigns, resulting in real bottom-line results. It’s AI analytics.

What is AI analytics?

AI analytics is the coming together of artificial intelligence and existing techniques used to analyse data and gain insights, in order to help marketers create effective and impactful marketing strategies.

Take Google Analytics, for example. It’s a platform that uses machine learning to give us information about website users, such as the number of visitors and entry points.

Traditionally, data analysts would take this information and report on what learnings can be taken from it and how it can be used to inform marketing strategies. AI analytics perform these tasks but at a speed, scale and accuracy that is a game-changer.

In short, where traditional analytic platforms present us with the ‘what’, AI analytics give us the ‘how’ and the ‘why’. It interprets the data. That makes it a powerful tool for marketers.

How are AI analytics used in marketing?

There are two types of AI analytics being used in marketing.

Predictive analytics use data about past performance to predict future outcomes, for example, that a certain style of boots is attracting a lot of interest in women who live in a certain area.

Prescriptive analytics, on the other hand, builds on that to encourage specific actions. For example, what we can do to encourage those with the boots in abandoned carts to move to purchase phase?

It does this by identifying patterns and trends about customer needs, preferences, and habits. Marketers use this information to create specific and targeted marketing campaigns.

Why use AI analytics? What are the benefits?

AI analytics can process data far quicker than a human ever could and can also analyse an amount of data so big, it’s eye-watering.

By analysing vast amounts of information and extracting valuable insights, AI analytics help identify trends, understand customer behaviour, and optimise strategies accordingly for maximum business success.

It also helps deepen personalisation. A recent Zendesk report revealed the level of personalisation expected by customers. In fact, 76 per cent of respondents said they expect some level of personalisation – and AI analytics allows businesses to tailor messaging, offers and experiences, resulting in improved targeting, higher engagement rates, and happier customers.

Are there any challenges with using AI analytics?

AI analytics is the new kid on the block and there are still some challenges to overcome.

AI analytics are formed based on historical data, and this means algorithms may contain biases or prejudices that exist within our society. Failure to negate these biases, can result in their perpetuation, leading to greater prejudice.

AI also doesn’t have human values, morals or compassion, and this can lead to unethical decisions. We see this already in things like fake reviews or social media bots.

One thing we have learned over the pandemic is that life can change dramatically, and very quickly. One day our biggest daily hassle is the commute, for example, then the next day it’s the furthest thing from our mind. On a smaller scale, trends change all the time. One day we’re all about the black pant suit, the next it’s all Barbie pink.

AI analytics aren’t always great at understanding sudden or unexpected life events that can be responsible for changed activity, and this could incorrectly interpret data.

Examples of tools for AI marketing analytics

Here’s some examples of AI analytic tools being used right now:

  • Dealtale is the platform used by those of us who aren’t data scientists. Its central dashboard lets you view all your metrics and build the ultimate customer journey with customised communication. It also presents the data in plain language.
  • Optimizely allows businesses to test multiple variations of different elements (e.g. A/B testing) simultaneously and identify the combinations that work the best. It also deepens engagement and conversions with website personalisation.
  • Google Analytics is probably the best known AI analytics tool, providing data and insights about who your website visitors are, where they come from, and how they interact with your product.
  • Adobe Analytics is popular among marketing professions because of its in-depth insights, which can be used to increase engagement, personalisation and conversion.

The future of AI analytics in marketing

AI isn’t going away, and is anticipated to play an increasingly important role in marketing, and most growth will be in AI analytics. Expect developments in what data is collected and how it intersects to create nuanced and detailed analytics.

Expect also, that it will never replace human marketers. While AI analytics may do the gathering and analysing, it will only ever be as effective as the human controlling and directing it.

The best thing you can do right now is to embrace AI analytics and learn as much about it as possible to ensure your future marketing will be adaptable.

Speak to the marketing experts

AI in marketing is a rapidly evolving space and marketing success depends on agencies understanding what advancements are being made and how they can best support marketing efforts.

Assemblo is a full-service marketing agency based in Melbourne and are experts in using AI analytics to develop marketing strategies that deliver real bottom-line results.

To find out how we can help your business, give us a call on (03) 9079 2555 or send us a note via the contact form below.

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