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Companies Using AI For Marketing

Data-driven marketing has been the trend for decades now. While AI tools have been used to peruse datasets for a long time, now they offer the growing potential to execute marketing strategies independently.

Metrics such as customer behavior, customer satisfaction, and purchasing habits can all be measured and understood by machine learning systems. By integrating this understanding with automated marketing techniques, AI is reducing workloads and increasing efficiency for companies worldwide.

As ever, the industry giants lead the way. The big tech companies are predictable pioneers, but businesses industries from automobile manufacturers to fashion brands want a piece of the action.

Let’s consider how some of the world’s leading corporations are adapting AI into their marketing practices – and where things might go from here.

BMW

BMW is one of the top car manufacturers worldwide. It’s also one of the leading companies using AI for marketing.

BMW has integrated AI into its data collection methods for customer experience and behavior. This data may then be implemented by AI systems to improve that experience and tailor a vehicle to a driver’s preferences.

Perhaps the best example is the BMW Connected Package. This technology collects data about customers and the cars they drive to provide a more personalized experience, with features such as:

  • Superior interconnectivity between in-car apps
  • Remote access via the customer’s smartphone
  • Speech recognition
  • Relevant information is instantly available while the customer is driving

The Connected service gives the customer access to upgrades from the company’s ConnectedDrive store, which offers high-class upgrades that also help BMW to understand its customers better. It’s what marketers know as a virtuous circle, and AI is at its core.

BMW also has an AI-enhanced sports car that automatically adjusts the car settings and system to suit a particular owner. The intelligent personal assistant is another case of AI incorporation to help smooth the user’s experience. The insights collected through these tools help the company’s marketing team customize its customers’ cars.

Amazon

It’s no surprise that Amazon is one of the top companies using AI for marketing. The company has been using machine-learning algorithms for decades to offer recommendations to its customers and improve their shopping experience.

The same technology has been extended to AWS (Amazon Web Service) customers through the Amazon Personalize feature. Sellers on the platform can now offer better recommendations and create personalized combinations for their customers.

Amazon has claimed that recommendations made via Personalize are around 50% more relevant and accurate than previously. This could be a game-changer for early adopters.

Amazon also uses AI for dynamic pricing, where prices reduce or increase as needed. Retail markets move fast, and Amazon is clearly keen to keep its sellers up-to-speed.

The check-out-free physical stores are also powered by AI, making it easy for customers to shop for their favorite products without the inconvenience of long queues and processes – and you know that all that customer data just goes towards further improving Amazon’s formidable marketing strategies.

Google

Hands up – who’s surprised to see Google on a list of companies using AI for marketing? Nope, nor us. It’s AI across the board for the search giant, collecting and utilizing marketable data in niches as diverse as:

  • Self-driving cars
  • Voice recognition technology
  • Watch time for YouTube videos
  • Google Translate

Of course, Google Ads also benefit significantly from improved machine learning. Google will be looking to AI to deliver superior results and pricing for its essential Ad service.

Despite the muted reception Bard received compared to the fireworks surrounding ChatGPT, it’s rarely wise to bet against the search giant. You can be sure that behind the scenes, the long-time master of data marketing is putting AI to work.

Sephora

Sephora is an internationally recognized beauty brand that uses chatbots to offer beauty and product advice to its customers. With many customers unable to go to the physical stores for testing, Sephora uses an innovative automated testing system to help its customers make the right purchase online.

The chatbots request relevant data from the client and use it to generate appropriate solutions. Any retailer that relies on physical metrics (scent, clothing size, etc.) loses HUGE volumes of checkout-ready sales that customers have second thoughts about – this personalized service can cut those losses.

Furthermore, using chatbots has allowed Sephora to offer around-the-clock assistance (and thus achieve round-the-clock sales), hugely improving its online profit margins.

Alibaba

The Chinese retail giant Alibaba is adopting AI-driven marketing strategies to drive sales and increase customer loyalty. It recently opened a FashionAI store in Hong Kong where products have intelligent tags.

These tags detect the customer’s touch and display the item information, and even recommend other items that would go well with the item. While it’ll likely be a while before these physical stores become a common sight, it shows that digital retailers see physical space as another valuable resource for data collection and improved marketing.

And, of course, sales opportunities!

Starbucks

Predictive analytics is being used by Starbucks to improve customer satisfaction and boost sales. Café chains have long understood the importance of customer data. Starbucks uses a mobile app and loyalty card to collect and analyze customer data for more accurate recommendations.

The loyalty card is one of the oldest examples of non-tech companies using AI for marketing and data collection. Machine learning systems analyze a huge body of data and recommend new products, stores, and offers to customers based on what they like or purchase regularly.

Netflix

“What shall we watch tonight?” is the question Netflix sought to solve when it introduced the trend of making all your favorite shows available all at once. Did it work? Kind of. We really are spoiled for choice.

While other big players have entered the streaming space, Netflix is a pioneer in helping its users with that problem through AI-powered recommendations.

The platform uses AI to gather data on what viewers like and watch and then recommends similar shows and movies. Viewers will always have something keeping them glued to the screen and a great reason to keep subscribing to the platform.

The platform’s recommendations system is responsible for over 80% of the shows its users watch. Regardless of the current competition, there’s no doubt that Netflix has been one of the greatest recent success stories in achieving the marketer’s dream – delivering a fully curated customer experience. And AI has let it achieve this with minimal effort.

Nike

Nike is a mega sports brand that invests heavily in innovation in marketing and, in turn, registers very high returns. With its fitness tracking devices and AI marketing tools, Nike provides its users with personalized experiences and sets a foundation for loyal and frequent customers.

One of the brand’s most impressive launches in the past has been the ‘design your own sneakers in store’ system that allowed customers to create their own designs. Besides driving up sales, that idea gave the company data it could use to create future designs that the clients would love.

Nike has also acquired the body scanning firm Invertex as wearable health technologies become an increasingly important part of sportswear. AI can analyze biometric data and offer bespoke recommendations.

Final Thoughts

It’s to be expected that the top companies using AI for marketing are industry leaders – but there’s nothing exclusive about this practice.

Commercial AI services are increasingly available to smaller and mid-range companies. Novel examples and success stories of companies hitting the big time through innovative AI-driven marketing strategies will emerge soon.

Watch this space!

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