Can AI Disrupt the Traditional Market Segmentation in Digital Marketing?

Artificial Intelligence (AI) is rapidly becoming more central to the digital world, and the marketing and advertising world is no exception. Some of the opportunities which AI is enabling in the field of digital marketing are predictive analytics, superior customer experiences, enhanced lead generation and targeted marketing that will offer a better ROI to customers.

What’s the Relationship Between Digital Marketing and AI?

AI has the ability to make marketing more precise and targeted to a company’s customer base by finding patterns in customer buying behavior. One of the cornerstones of marketing is producing content that is relevant and attractive to its target customer base, and in the past, this has been done by using market segmentation.

What’s Wrong with Current Segmentation Practices?

Market segmentation is vital for an effective marketing campaign. Segmentation allows for more targeted messaging towards a specific customer group that shares needs.

1. Segments are too broad/generic: Without AI, currently the creation market segments to develop content for a customer group isn’t as specific as it could be. Generally, market segments created by humans tend to be more generic, broad, and limited by number. Generic and irrelevant content is more likely to turn away customers rather than attract them.

2. Rapid responses: Another challenge facing marketing teams is the difficulty of being able to scale and being responsive to provide targeted recommendations quickly. Marketing content informed by previous segmentation becomes more effective and useful the more specific and the smaller the market segments are.

How can AI help?

With the use of AI, marketing teams will be more informed than ever before about what segments in their customer base are looking for.

1. Identifying hidden patterns: AI/ML can identify key differences and patterns between customers and develop an unlimited number of segments. It has the power to analyze large sets of data for patterns without bias that may not have been apparent to human marketing teams.

2. Personalization: AI can develop more specific segmentations and inform more personalized marketing content for campaigns.

3. Relevance: By better understanding more specific customer bases, AI can help marketing teams develop more relevant content. Increased content relevance increases campaign efficiency, ROI and improves customer response.

4. Improves with feedback: AI/ML can continually improve based on feedback and can also keep up with changing customer behavior and shifting segments.

Conclusion

AI driven market segmentation has the potential to completely revolutionize how marketing campaigns are approached. There are countless benefits to the use of AI not only for the brand but also the customer. AI driven market segmentation makes digital marketing powerful and efficient, while also solving company and customer pain points. The good news is, there’s a variety of easy to implement solutions which are also competitive and can handle the dynamic changes to the digital marketing landscape.

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