How AI Is Poised To Drive Digital Transformation For Marketers
by Gary Drenik · ForbesThe State of AI Today
With the rapidly advancing AI landscape, organizations everywhere are implementing new AI technologies and developing AI products that are poised to significantly transform their businesses and give them an edge against competitors. In fact, it’s been estimated that gen AI could contribute up to $4.4 trillion in annual global productivity, according to a recent McKinsey report.
As we wrap 2024 and head into 2025, the priority will be how we build consumer trust and confidence in AI as it continues to become mainstream and what type of regulation is necessary at the federal level. According to a survey conducted by Prosper Insight & Analytics, 1 in 3 respondents (36.9%) believe recent developments in AI need human oversight and 1 in 4 believe recent developments in AI need to be regulated by the government.
The Rise in Autonomous Marketing
One of the biggest shifts in the marketing sector in particular is the rise of autonomous marketing, which relies on AI to transform how traditional marketing has been done previously. Deloitte describes autonomous marketing as the ability to leverage “predictive capabilities to personalize customer relationships in real time with content, recommendations, fulfillment, and even purchase follow-up that anticipate people’s needs.”
Autonomous marketing represents a significant shift from traditional methods. For instance, Constellation, a first-of-its-kind SaaS platform, leverages AI in addition to its proprietary data to empower highly regulated and complex industries such as pharma with the insights and content they need to fuel their business and scale ad content. They use AI to analyze large quantities of data to deliver highly personalized content and experiences to individual customers, leading to increased engagement and conversion rates. This not only reduces the need for manual labor but also results in significant cost savings and higher ROI, which can be a game-changer for marketers.
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How Marketers Can Adopt AI to Personalize Customer Experiences and Drive Impact
To remain competitive, marketers can adopt AI for various use cases and incorporate advanced data analytics and social listening into their strategies. For example, by gaining a deeper understanding of customer behavior and having a holistic view of customer data as a whole, businesses can improve the customer journey and experience and make more informed decisions. Chatbots and message automation has been used widely with great success for years.
Monitoring online conversations about brands, industries, and competitors is also crucial for staying ahead. This kind of insight helps marketers adapt their strategies and respond to new trends. Regularly tracking key performance indicators (KPIs) and using data-driven insights to refine strategies ensures continuous improvement and better campaign outcomes.
Constellation’s solution exemplifies how advanced data analysis can transform marketing strategies. For example, by deploying Constellation's software, Michelle Pfeiffer’s Henry Rose saw a 32.8% increase in return on ad spend (ROAS). In such a saturated market, standing out as a leading fragrance brand on TikTok can be challenging. Henry Rose partnered with Constellation to help their campaigns perform at their best, combining creative assets with TikTok tools to effectively communicate their brand’s message. This collaboration led to a 15.4% decrease in cost per action and a 26.6% increase in conversion rate. Overall, Henry Rose was able to generate 600+ conversions and 1.9M impressions.
Benefits of AI in the Marketing Organization
The use of AI-driven tools in marketing enhances productivity in ways that may otherwise be difficult to achieve through traditional methods. Marketers benefit from having a more accurate and holistic view of customer data to inform decision-making. Automated data analysis delivers accurate insights quickly, saving time and providing valuable intelligence. Predictive analytics allows marketers to predict customer behavior and proactively adjust strategies, leading to improved conversion.
They can also leverage the insights to create personalized UX experiences tailored to customers’ behaviors and reduce friction. According to a survey from Prosper Insight & Analytics, 1 in 4 respondents (26%) would prefer to communicate with AI if they need assistance with online shopping/purchases. That Prosper Insight & Analytics survey figure is only expected to grow. Social media monitoring tools and online platforms offer feedback on social sentiment in real-time, helping marketers address issues and capitalize on positive trends. Businesses can also monitor emerging negative trends that could impact their performance. This capability is essential for staying competitive in a constantly evolving market.
The Opportunity
As technology continues to develop, businesses that integrate AI-driven tools into their marketing strategies are likely to see improved customer engagement and ROI. As noted above, 1 in 4 respondents (26%) would prefer to communicate with AI if they need assistance with online shopping/purchases and this number is only expected to grow as AI adoption continues.
According to Diana Lee, founder and CEO of Constellation, companies can remain innovative and competitive in today’s vastly evolving digital world only by combining advanced technology with human creativity.