It’s Time to Put AI Into Action

How predictive marketing is impacting three key sectors

There’s a statistic that gets shared frequently: Back in the 70’s, people were exposed to about 300-500 ads a day. That sounds like a lot, until you realize that today, it’s more like 5,000. And while those specific figures may be debatable, it speaks to an issue that’s critical to today’s marketers: the amount of noise that drowns out your message.

The promise of digital advertising has been to cut through that clutter. But at times, it’s just added to it. The era of predictive marketing—driven by the rise of artificial intelligence and machine learning—will finally deliver on that promise.

Over the course of this content series, we’ve looked at how AI is the connective technology that will let marketers leverage the value of the volumes of data they’re collecting. AI is the only way to create real-time predictive insights that anticipate and exceed customer expectations and deliver exciting, delightful experiences.

Earlier this year, Andrew Ng, the former chief scientist and AI lead at Baidu, referred to AI as “the new electricity,” noting how it would change life much like the power grid did a century ago. Like electricity, it’s gone through a bumpy beginning, but AI is now is at the point where it will be impacting businesses. We couldn’t agree more.

We recently released a series of studies exploring the ways marketers in different industries can gain a significant competitive advantage through predictive marketing. Let’s look at some highlights:

Banking and the rise of fin tech

By 2020, 95 percent of banking transactions will be digital, and innovative banks and other financial services companies are investing in ways to use these transaction moments to inform customized, cohesive and consistent customer experiences.

AI is an essential element to this kind of predictive banking. By identifying patterns in customer interactions, bank marketers will be able to deliver offers and services that meet contextual needs, something people truly want from their financial services providers.

What does that look like? Imagine you’re an existing mortgage customer looking at properties online. That could indicate you’re in the market for a new house. The bank can serve up messaging around its best mortgage rates, encourage pre-approval, and ensure the purchase of your new house goes smoothly. More square footage could then indicate that your family will be in the market for new furniture, so that can trigger an offer for a low-interest travel rewards card. Delivering offers when they’re needed reduces churn, pinpoints upsell opportunities, and identifies new high-value customers.

Retail knows what you want to buy

The modern shopping journey passes through so many different digital and real-world channels that it creates a deluge of data that marketers can use to predict what customers will do next with uncanny accuracy. The right product bundle for the right person can be in place before a customer even walks into the store. Sales associates—real people or even intelligent bots—can know your browsing and purchasing history and provide personalized recommendations.

AI and machine learning are already transforming the shopping experience. Amazon’s Alexa allows purchasing via natural language. At The North Face, an IBM Watson-enabled search engine helps you find the perfect jacket by analyzing the weather, your activity level, your gender, and whether you’re in a remote or urban location, from just a few pieces of information you provide.

The real power of AI will be to go beyond delivering experiences in reaction to customer input. The most successful retailer marketers will use AI modeling and machine learning intelligence to be truly predictive and responsive in real time. No more broad shopping segmentation, but a truly personalized, predictive experience.

Travel takes off

Speaking of journeys…

Travel and hospitality companies need a predictive marketing platform that can leverage the wealth of first-party data they have on customers and prospects. AI can process and learn from this data, giving companies the insights they need to predict preferences, anticipate needs, and make nearly every offer and gesture special and irresistible.

In the future, hotels and airlines will be able to deliver a seamless, start-to- finish travel experience for the customer. Every traveler wants a trip that’s unique and immersive. Travel brands need to provide emotional connections, and that’s taking place more and more via AI. For instance, AI will enhance the humanity of chatbots and assistants, making these technologies more intuitive guides to bolster customer experiences.

Machine learning and AI are just at the beginning of powering the next generation of innovation, totally changing how we approach audiences. More insights, better predictions and marketing that understands context and need all lead to the perfect customer experience. That’s the promise of the cognitive era.

About the Sponsor

Rocket Fuel’s been using AI in marketing for over 8 years. Explore the magic of predictive marketing at RocketFuel.com.