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Artificial Intelligence in Marketing – How to Fully Utilize It

Artificial intelligence offers quick, intelligent solutions for enhancing marketing. At its best, leveraging artificial intelligence in marketing can help your company compete with others by increasing marketing effectiveness, reducing marketing costs, improving customer experience, and boosting revenue.

How can artificial intelligence be used in marketing?

In a company's marketing, artificial intelligence can be used for many different purposes, including customer segmentation, targeted advertising, data analysis and monitoring, marketing personalization, content creation, and implementing customer support.

In addition, artificial intelligence can and definitely should be utilized to enhance other business operations, such as in the inventory management of a company and online store, as well as in building automated, more efficient processes and business models.

In this article, however, we will first focus on the former, namely artificial intelligence and marketing. 

We have listed for you the 5 best ways to enhance marketing with AI right now:

1. Understanding the customer and the market 

The right, result-producing decisions in both marketing and other areas of business require a deep understanding of the company's customer base and changes occurring in the market – preferably sooner rather than later.

Artificial intelligence can process vast amounts of customer data cost-effectively, more affordably and efficiently than humans. It is also capable of identifying and predicting customers' thoughts and movements based on data, as well as emerging changes in trends, values, attitudes, consumption habits, and other market areas.

Additionally, it can identify different behavior patterns on your behalf, create customer profiles, and find the most potential ones. customer segments to which it is most profitable to market your product or service.

This information is needed to achieve a sustainable competitive advantage in constantly changing markets, which nowadays means almost every market. If you do not notice the signs of change and react in business in a timely manner, your company cannot remain competitive and relevant in the eyes of customers year after year.

2. Optimization of Advertising Campaigns

Artificial intelligence allows for the analysis of in-depth information on, among other things, customer segments, profiles, customer behavior, and the keywords used to search for your product or service.

This makes AI an effective tool for optimizing advertising campaigns.

With the help of artificial intelligence, it is possible to create highly accurate customer profiles and target advertising solely to these users.

Advertisements are displayed at more relevant times to the most potential groups, which naturally increases the effectiveness of marketing.

In marketing, artificial intelligence can also reduce costs by, for example, finding the most effective keywords, determining the most successful strategies, and managing ad purchases on your behalf, allowing you to allocate even limited resources to the right places and further enhance the effectiveness of campaigns.

In 2023, the ad creation feature is still in its infancy, but in the future, AI might very well produce unique, extremely effective text, image, and video ads created in real-time based on user history.

3. Intelligent Data Monitoring and Analysis

Also, intelligent data tracking and analysis can be entirely entrusted to AI.

We already mentioned in the section Understanding the Customer and the Market why tracking data plays a critical role in today's business and in staying competitive.

Often in a company, the opportunities brought by data may still not be understood, the right data may not be tracked, or information may not be compiled into an easily comprehensible form from which business-supporting and promoting decisions can be made.

Analyzing small amounts of data is generally not considered problematic, but as the amount of data collected increases and comes from multiple sources, the monitoring and analysis work becomes significantly more challenging expert work and, of course, time-consuming.

However, artificial intelligence can complete in just a few hours a task that would normally take a person weeks to accomplish, and for which the necessary expertise may not even be available within the company.

With the help of artificial intelligence, marketing can easily track and analyze data almost in real-time. Valuable data to be analyzed includes clicks, time spent on websites and different sections of pages, bounce rates, conversions, and historical customer behavior.

With the current and, above all, reliable information obtained from these, it will be easier for your company to, for example, develop its products, services, and brand in the right direction and allocate resources where they will yield the greatest benefit.

4. AI-Personalized Marketing

As everyone surely knows, it is cheaper, easier, and even 50% more likely to get an old customer to buy again than to acquire new ones.

Personalization of marketing, whether done by AI or humans, helps improve customer satisfaction, increase customer loyalty, and enhance loyalty towards your brand.

Personalization also makes the customer feel valued, even if they know that a machine sent and personalized the message.

Since artificial intelligence learns from our preferences faster than we (humans) do and can process vast amounts of data almost in real-time, advertising can be personalized very accurately and timely, allowing the right customers to be reached with the right message at the right time.

The most common form of personalization appears as a shopping cart abandonment message that arrives in your email or, for example, as a personal discount code sent in honor of a special occasion.

Artificial intelligence takes marketing personalization to the next level, for example, by showing an online store customer primarily those categories and products in the search function or on product pages that, based on the customer's user history, interest them the most.

5. Production of Marketing Content with AI

Artificial intelligence can easily create blog articles, social media posts, product descriptions, product images, product videos, and animations in an instant.

AI-assisted content creation tools significantly reduce the resources required for content production, as the planning, creation, and implementation of marketing content is accelerated and the marketer's productivity increases.

Creating text content in Finnish, English, and most languages can be done instantly with tools like Jasper, Copy.Ai, and ChatGPT. Creating and editing images is conveniently done with tools like Canva, Adobe FireFly, or the upcoming Microsoft Designer.

However, at the moment, texts produced by artificial intelligence are easily identifiable by their errors, inadequate grammar, and distinctive tone.

Additionally, the outputs of artificial intelligence are often similar, as it is unable to produce unique text, tell stories, or share human emotions or experiences.

Errors may also appear in images, such as missing or extra fingers.

Content created for marketing with artificial intelligence should therefore always be reviewed and edited to fit the brand's voice. In other words, human input is (still) needed in content production.

However, AI accelerates the content production process so significantly that it is not reasonable to avoid utilizing it in a company. For example, the draft version of this blog article was created with AI, saving a couple of hours of time.

Artificial intelligence can indeed be taught to produce brand-compliant content. This requires some effort on your part and is not possible with every tool, but we believe this issue and other shortcomings will be resolved in the near future.

5. Interactive 24/7 customer support

Also, customer support is marketing.

With AI-assisted customer support, you can enhance the customer experience on your website, streamline your customer service, reduce the need for customer support, and increase productivity elsewhere in the company.

Conversational chat bot on the online store and also on the homepage offers round-the-clock assistance in solving customer issues when a customer service representative is not available. 

In addition, the bot facilitates the customer's experience by helping to find information about the product or service.

The customer may even find it easier to approach the company through a chat bot, as there is no need to leave the website. And when interacting with customers more frequently, potential problems can be prevented, and customer satisfaction can be kept high, which is the best marketing.

An AI-assisted bot can also be utilized for lead collection, allowing your company to retain customer information for future contact.

At the same time, you receive more analyzable information about the customer's issues and needs, which you can use, for example, in the development of customer service, websites, and the product or service. 

The Benefits of Artificial Intelligence in Company Marketing

In marketing, artificial intelligence can be utilized, among other things, to create personalized customer experiences based on user data, which increases the efficiency and impact of marketing.

Since a large portion of manual work can be delegated to AI or fully automated, such as data tracking and analysis, marketing can be executed more cost-effectively, more efficiently, and results can be obtained faster.

In practice, this AI achieves this by collecting real-time data, which makes it possible, among other things, to identify customer segments, understand customers more deeply and serve them better, personalize and enhance advertising, anticipate changes in consumers and markets, and develop business by making data-driven decisions.

Even a small company can achieve significant competitive advantage over established competitors, even with limited resources. 

Where should artificial intelligence be used and where not

Artificial intelligence can and should be utilized as a competitive tool in marketing, for example, to streamline processes, improve customer experience, and increase cost savings.

The role of artificial intelligence in marketing is rapidly increasing, and its broader utilization in companies will likely soon become essential for every business of tomorrow that wants to compete against other companies.

However, artificial intelligence also has its own limitations.

For example, in content production, AI can only combine information from different sources, not create new content. It also lacks your brand's voice and your customer's emotions.

Search engines have also reacted to AI, and Google has announced that it will penalize websites for low-quality or useless content, which AI-generated outputs can easily be (if unedited). However, valuable content is rewarded with visibility, whether it is produced by a human or AI.

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