AI and marketing automation: A dream duo

In the CEX Trendradar 2024, we predicted robust growth for marketing automation and Artificial Intelligence (AI). AI is and will be present in almost all systems. Six months later and after a preliminary evaluation, we have to revise the forecast even further upwards. Two major driving forces are responsible for this development. The desire of customers for a personalized approach encounters a technology – or, more precisely, the use of AI in various corporate systems – which facilitates such a targeted approach very efficiently and in near-real time based on analyses.

First, a brief explanation of the terms. AI and automation are often used interchangeably, and sometimes the two terms are confused. Artificial Intelligence means that machines imitate human intelligence to perform tasks that would normally require human skills. AI technology uses algorithms, deep learning, and neural networks to analyze, interpret, and learn from data.

Automation, on the other hand, uses machines and software to automate tasks that would normally require human intervention. The main goal of automation is to increase efficiency, reduce errors, and increase productivity.

Artificial Intelligence (AI) plays a critical role in marketing automation and customer relationship management (CRM). Here are some specific application examples:

Marketing automation with AI

• Personalized recommendations: AI can analyze vast amounts of your customer data to create personalized product or service recommendations based on individual preferences and buying habits. Especially when prompt action is key, AI is all-important.
• Dynamic content adaptation: Websites can dynamically adapt their content based on a visitor’s browsing behavior. AI recognizes patterns and preferences and can customize content that is pertinent and appealing to individual users.
• Efficient campaign creation: Within your existing target group, AI can help identify new target groups or subgroups that are particularly responsive to specific forms of communication and engagement.
• Campaign orchestration: Companies can use AI to scale the number of their campaigns without having to worry about deciding which campaign to deliver next. AI models quickly identify all campaigns that are available for every customer and determine the next best action for them, thereby optimizing marketing automation.

Even in the reactive customer service space, a wide array of AI applications are feasible. This is easy to demonstrate with the image below. Generative AI analyzes the 360° customer view in the BSI Customer Suite and generates a suitable image that reflects your customer's life situation. As a result, your customer reps can quickly see at a glance who they are about to engage with.

AI does not equal AI

Although we speak of AI in general terms, it is important to distinguish between different forms of AI for different application areas in your company. Or, to put it simply: AI does not equal AI. For instance, you need different AI features for the analysis of vast amounts of data than for the creation of content (generative AI), or the use of AI in chat or voice bots in customer service (conversational AI). Two things are crucial for expert users in marketing and sales: One is the integration of the relevant AI systems/models into the features without the users themselves having to have the expertise to select the suitable AI system or model. And the second one is the context-related support in your daily work in marketing and sales. Today, AI as a “Companion” means that it assists your expert users with context-related information. Examples are recommendations for the next step in engaging with a customer based on an analysis with the appropriate pattern identifier and a forecast of the probability of a sale of a specific product or service.

These examples demonstrate how AI can improve efficiency, personalization, and differentiation in marketing automation and CRM by facilitating real-time, data-driven decisions and optimizing your customers’ experience.

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Author

Harald Henn is a CEX expert and managing partner at Marketing Resultant GmbH in Mainz, Germany. He has guided and supported companies with their customer experience and digital customer service projects since 2004. Together with the economist Prof. Dr. Nils Hafner, he annually develops the CEX Trend Radar, an overview of all important CEX trends from the people, process, and technology areas.