Increasing customer engagement can be a daunting and time-consuming task for businesses in today’s fast-paced digital landscape. Thankfully, Generative AI technologies offer a multitude of possibilities for marketers to establish meaningful connections with customers and build brand loyalty.
Instead of dedicating extensive hours to data analysis and segment definition, marketers now have the advantage of leveraging AI-driven tools to create personalized campaigns that boost customer engagement.
80% of banks are planning to increase investment in AI over the next 5 years. This shows that AI is not a passing trend, but rather an integral part of an organization’s growth trajectory. Therefore, marketers need to embrace it now to develop future-proof strategies.
To assist you, we’ll embark on a journey into the realm of Generative AI in this blog post. We’ll begin with the fundamentals, explore its benefits along the way, and delve into best practices.
Generative AI: Explanations, Tools, and Benefits
Generative AI is a type of artificial intelligence (AI) technology that can create various content such as text, images, audio, and synthetic data. Its origins can be traced back to the 1960s when it was first introduced in chatbots.
This AI technology is making waves nowadays, due to the emergence of generative adversarial networks (GANs). These algorithms leverage deep learning to generate new outputs that closely resemble the input data.
Generative AI has a wide range of applications in various fields. It is used for creating innovative product designs, optimizing business processes, empowering customer value management, and enhancing existing content, among other possibilities.
As a practical example, a telco operator launched an AI-powered customer value management initiative and achieved a reduction of more than 10% in customer churn, along with a 20% increase in cross-selling.
These AI and machine learning applications can be integrated into software products or accessed through tools such as ChatGPT, DALL-E, and Bard.
Creating conversational chatbot experiences, generating user-friendly interfaces, and offering more personalized assistance to customers are just a few of the many opportunities these applications provide for improving the customer experience.
Most Popular Tools to Be on the Lookout for
Numerous generative AI models and tools are available to assist marketers in crafting compelling marketing campaigns and messages. Here are the most essential tools that have garnered significant attention and gained popularity in the last few years:
- ChatGPT: Developed by OpenAI, ChatGPT is an AI chatbot that uses deep learning to generate human-like text based on user prompts. The platform interacts with users in a conversational way to provide them with answers or compose texts.
- DALL-E: DALL-E is an image tool that generates custom images based on natural language prompts. It is an effective tool that can produce compelling visuals for marketing campaigns, product showcases, and branding materials.
- Bard: Google’s experimental AI Chatbot Bard is developed to complement Google Search as a creative collaborator. It can enable marketers to write compelling content, brainstorm ideas, and pull information from the web through the “Google It” button.
These tools can provide a faster, better, and more scalable way to create content pieces that are more customer-centric and effective than traditional methods can
The Benefits of Generative AI
AI is specifically developed to enhance human capabilities by minimizing errors, automating repetitive tasks, assisting content marketers, and contributing to the betterment of society. In fact, research shows that AI can improve human productivity by 35%.
This technological advancement enables this level of productivity thanks to some of its following abilities:
- Enhanced Decision-Making: Generative AI assists in making well-informed decisions by analyzing vast amounts of data and generating valuable insights. This ability can be extremely beneficial for various sectors such as finance, healthcare, and business intelligence.
- Promotion of Exploration and Innovation: These tools open up diverse options and possibilities, encouraging exploration and pushing the boundaries of creativity and problem-solving.
- Improved Personalization: By understanding individual preferences and behaviors, generative AI creates personalized customer experiences and recommendations, resulting in enhanced user satisfaction.
- Streamlined Language Translation: Localization is an important aspect of creating engaging messages across channels. With its natural language processing and translation capabilities, generative AI tools can enable effective communication across different languages.
One example scenario for how banks could utilize these benefits is by implementing recommendation tools into banking apps. This way, the app can provide recommendations for products or campaigns based on the user’s past purchasing history, payment patterns, and location preferences.
Leveraging Generative AI to Increase Engagement
In today’s ever-changing marketing landscape, using a one-size-fits-all approach is no longer effective. Marketers are challenged with analyzing vast amounts of data and making sense of this data to deliver great customer experiences across all channels.
Generative AI can tackle this challenge. It can help create and target data-driven marketing campaigns tailored to customer demographics, interests, and purchase history.
What makes AI tools particularly remarkable is their ability to achieve this level of personalization in real time. Yet, many organizations struggle with how to use AI for customer engagement and incorporate it into their operations.
Let’s explore some best practices to understand how these technologies can be implemented.
Morgan Stanley, for instance, uses ChatGPT in an internal chatbot to assist employees in finding wealth management information quickly. The chatbot synthesizes and delivers answers to specific queries within seconds. This empowers employees to work efficiently and provide customers with personalized assistance at a faster pace.
Spotify has integrated this technology into its applications to offer personalized DJs for its listeners. By doing so, the app curates a customized listening experience that makes interactions more immersive and personal.
Ways to Utilize Generative AI to Enhance Customer Experience
There are several ways you can leverage the benefits generative AI can bring to your campaigns in order to improve customer experience and achieve the level of engagement you desire to have.
Create Segment-Driven Experiences
Generative AI can enhance the accuracy of data analysis, allowing you to extract more precise insights from your existing data. Moreover, it can identify patterns and trends, enabling you to make predictions about future customer behaviors.
By doing so, you can create more sophisticated customer segments, gain a deeper understanding of how each segment interacts with your brand, and tailor strategies more effectively to match customer preferences.
Break Down Language Barriers
AI has the power to overcome language barriers by using automated translation and localization. Customer service interactions, websites, and social media platforms can be equipped with chatbots to enable effective communication in multiple languages.
This can also be a valuable tool for marketers who’re in the process of localizing their content. By comprehending the cultural nuances and context, AI can help marketers adapt their messaging appropriately.
Generate Tailored Content
Social media channels, customer feedback, and market trends—all these sources are essential for marketers to gain actionable insights for content creation. AI can streamline this process by identifying patterns and performing sentiment analysis.
By feeding their inputs with these insights, marketers can create tailored content such as blogs, videos, social media posts, or ad texts that resonate with their target audience.
Streamline Customer Support
Embedded generative AI tools, such as chatbots, are not only beneficial for multilingual customer support, but also for providing 24/7 service. These smart chatbots can also respond to customers in a conversational and human-like manner.
For example, many banks use AI-powered chatbots that operate around the clock to answer customer questions, provide account information, and assist with transactions.
How Generative AI Can Empower Telcos & Banks
Nowadays, telcos face challenges such as market saturation, price wars, and alternative communication channels like messaging apps. These factors make it difficult for them to boost profitability and increase the average revenue per user (ARPU).
Similarly, banks operate in challenging markets where they are expected to function as full-time financial advisors to their customers.
While these industries have unique challenges, they also share some common characteristics. They possess vast amounts of customer data, and engagement is crucial for maintaining a competitive edge.
The players in these sectors can leverage AI tools to create successful scenarios that drive engagement and improve profitability.
Embedded generative AI algorithms can analyze the extensive customer data that telcos and banks possess, including demographics, usage patterns, transaction history, and communication preferences.
By understanding customer behavior and preferences, AI tools can assist telcos and banks in personalizing their scenarios and content strategies.
AI can also help telcos and banks brainstorm content ideas and write compelling content pieces. For example, a bank can provide inputs to ChatGPT, including information about their card products and pain points of customers, and ask it to create ad texts that address customers’ needs accordingly.
The Future is Promising with AI
As AI continues to evolve and become more sophisticated, its potential for the future of marketing becomes more promising.
We don’t know exactly what AI will evolve into, but we can estimate that as it becomes more advanced and accessible, it will unlock new levels of personalization, efficiency, and creativity for marketers to stay ahead of the game.