First things first. Lets break down what machine learning is before going further with the actual topic of the blog. If you are familiar with machine learning in marketing as a basic concept you can skip the next paragraph and come back if you are missing a point or leave a comment requesting further clarification. I believe with interaction we learn the best so looking forward to having discussions with you.
Machine Learning in Marketing
With machine learning marketing it is generally meant personalization with an algorithm that learns from user behavior by connecting dots. To put it simply. For example product recommendations on an ecommerce website to increase your order value. These are done with machine learning if you want them to be on 1-on-1 level and drive stronger results than human made suggestions which requires a lot of manual work also.
Necessity of Machine Learning
Complexity of marketing is increasing exponentially all the time and having to keep up with it is proving to be more and more difficult all the time. In marketing automation you can set certain rules to your software without machine learning but that isn’t anymore what consumers want. They want 1-on-1 communication with a brand and don’t care what challenges the brand has to achieve it.
If the brand is unable to achieve that consumer will just move to the next brand. Simple as that. Consumers want more without revealing more is where machine learning needs to step in so that you can be there offering what the consumer wants before they even know it.
In the above graph is a mention of May’s law which means that software efficiency halves every 18 months. Meaning if you have a marketing technology in use that hasn’t been developed in the past 18 months then it is only providing 50% of the performance its competitors are pushing today. As software’s get more efficient it also means the complexity of them is getting higher (not necessarily the user experience).
Meaning the data and rules you set are what sets the foundation for machine learning to develop it further and learn from your customers- What are their buying patters, who they are, what they’d need to buy with a certain product or service to get most out of it and what could be useful for them in the future. In the end better recommendations to your customers means more revenue – that is what every company is after.
Proving again why machine learning is a necessity and not a nice-to-have.
Personalization at Scale
Achieving personalization is crucial for customer experience which is the trending topic this year. Customer experience is what matters if you want to keep customers for longer time and to increase their customer life-time value.
To achieve personalization and be able to scale it up as your business grows or if you already have a substantial customer base is practically impossible resources wise unless you have a marketing cloud with machine learning integrated into it.
Think of it this way. You have 100 people in front of you and all of them have a different background, needs and wants. Normally you’d segment this group to have them in manageable sizes to align their needs in the bigger picture. With machine learning involved in your marketing you are can let it do the work and approach each person as an individual rather than as a segment 20 people from the whole group of 100 people.
When you onboard or enable your marketing cloud to “unleash” its full power with machine learning you are able to achieve personalization and true 1-on-1 communications which will create an amazing customer journey. With this customer experience, you are able to increase your sales and make your customers promoters of your brand.
Where Else It Can Help Marketing?
Where else machine intelligence can help you in your marketing. Sky is starting to be the limit and it is thought that it won’t be long until machines we build are smarter than us. In the following image you can see different aspects of your marketing where machine intelligence an squeeze more out of your marketing budget.
By 2020 its predicted that 50% of CMO’s budget will be technology and with the “rise of marketing technology” it is coming closer and closer to the reality.
Finding it challenging to embrace all the aspects of marketing technology? Worry not you aren’t alone and we are more than glad to help you navigate this jungle of machine learning and marketing technologies which amount at close to 5,000 these days.