Machine Learning in Marketing
Artificial intelligence (A.I) is one of many technologies to have improved drastically over the past two decades. With A.I improving as fast as it is, machine learning is improving as well. Machine learning is when a computer is presented with data and algorithms, learns it, and then improves the algorithms based upon the data without being programmed to do so. Essentially, it means computers are learning for themselves, becoming more understanding of humanity and what we want.
So, what does this mean for marketing? Before the technology advancement, marketing was rarely personalized for each consumer. Before the Internet boom, consumer data was available to companies on a marginal basis. Since the Internet has taken over the world, more and more data has become available to businesses. With more data available than ever before, algorithms in A.I and machine learning have improved. Predictive analytics, Natural Language Processing, (NLP), and various other software programs have been developed to help companies reach the consumer in newer and better ways than ever before.
Predictive analytics is a type of program that machines use to learn, with data mining technology. It uses the company’s collective data, such as logs of customer purchases, demographics, or behaviors to build a predictive model specialized for your business. The ads on the side of your Facebook aren’t there randomly. They are there based on data companies have mined from your buying history, search history, and frequently broswed websites just to name a few. Data mining is allowing companies to reach out to specific niche consumers, rather than with just a blanket ad on a website or a commercial.
Natural Language Processing (NLP) is a program that improves content and query relevance, offering consumers a more accurate interpretation of their voice search. In layman’s terms, this means when a person does a search in colloquial terms, search engines won’t have much of an issue coming up with responses matching what you’re looking for. By using NLP, marketers can adapt and manage their SEO with an even broader range of terms to reach consumers, making it less frustrating for consumers and better business for companies.
Customer relationship management (CRM) software is another example of machine learning programming. CRM is a category of software that covers a broad set of applications designed to help a business manage customer data, customer interaction, automated sales, and access business information. Content management systems (CMS) are software applications used to create and manage digital content. Often, one or both of these programs are used by companies reaching out to customers through email, to grab attention to new sales or products being offered. Essentially, these programs help the computer constantly learn and digest information about a consumer and a company, storing it in a database to be referenced for future benefits.
All of these programs and more are heading in one direction, which is hyper personalized and predictive customer service. While some consumers may find this to be an immense invasion of privacy, machine learning and A.I only improves consumer experience and company business, making it better for everyone.