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AI Use Cases

A collection of over 250 uses for artificial intelligence

A continually updated list exploring how different types of AI are used across various industries and AI disciplines,including generative AI use cases, banking AI use cases, AI use cases in healthcare, AI use cases in government, AI use cases in insurance, and more

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Email campaign optimization

Introduction

It is therefore important to recognize the fact that the marketing industry has gone through a great change in the recent few decades especially with the integration of digital technologies. This has also affected the area of email marketing because what used to be a time consuming process is now being done with the help of technologies such as Generative Artificial Intelligence (Gen AI) and Machine Learning (ML) AI wherein work is done more efficiently and with better output. These AI technologies have provided the marketers with a way to reach their audiences in a more targeted manner, create content that is relevant to their audience and assess the effectiveness of their campaigns to an unprecedented level.

Challenges

Although there are many advantages of using email marketing, there are certain challenges that prevent its optimization. Some of the challenges are how to create personalized content in large quantities, how to comprehend and forecast the customers’ behavior, how to get high open rates of the emails, how to work with massive volumes of data, and how to measure the campaigns effectively. The conventional approaches do not always help in solving these problems thereby making the campaigns less effective and revenue generation being missed. For example, companies such as JP Morgan Chase & Co. struggled with creating personalized emails for its millions of customers globally.

AI Solutions

With the challenges that come with email marketing, Gen AI and ML AI offer automation and enhancement for various aspects of the marketing strategy. Personalization has become a mainstay in modern marketing and AI makes it efficient on a large scale. AI algorithms are capable of processing large volumes of data to generate a rich understanding of the individual consumer, which in turn enables creation of highly relevant content. For instance, Starbucks employs AI to send tailored emails to its customers containing offers relevant to them. Predictive analytics, which is also an AI application, can also help in shaping the customer behaviour by analysing the customer’s future behaviour. Also, AI tools can help in determining the best time to send emails and get the highest response rate, a concept that HubSpot among other companies adopt. It also has measures for determining the effectiveness of a campaign through AI. These analytics can measure aspects such as open rates, click-through rates and conversion rates hence enabling marketers to make necessary adjustments.

Benefits

There are a variety of ways that AI can be used to optimize email campaigns, each of which provides numerous benefits. More personalized content increases customer engagement, which in turns builds loyalty and leads to more sales. Predictive analytics helps in creating proactive strategies thus improving the chances of campaign success. This is because properly timed emails are delivered at times that the recipient is most likely to open them, thus increasing the open rates of the campaigns. As a result, detailed performance analytics offer valuable insights that can be acted upon to ensure that campaigns are always being improved. Essentially, AI allows marketers to enhance and leverage their email marketing efforts while at the same time increasing their productivity.

Return on Investment

There are numerous benefits that can be derived from the application of AI in email marketing and the ROI is quite impressive. A research done by the McKinsey Global Institute stated that organizations that utilize AI in their marketing processes can boost their revenues by 15-50%. Some large companies such as Sephora have also seen a high rise in their email open rates and conversion rates after incorporating AI-based email marketing strategies. Although there is a considerable cost in integrating AI, the high returns on revenue and reduced costs are attractive to many organizations.

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