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Newsletter position testing

10th May 2022 - 4 mins


By Andy Gilhooley

, Marketing Manager

Artificial Intelligence (AI) is one of those terms that’s often talked about, but not always understood.

The good news is that thanks to today’s automation platforms, marketers don’t require an in-depth knowledge of how artificial intelligence works, instead they can focus on the possibilities it presents.

The basics

At its most simple explanation, the term AI refers to software used by computers to help them mimic aspects of human intelligence. For example, a program that recommends your next book purchase, based on books you’ve previously bought.
This software uses sets of instructions – each set is known as an algorithm, which helps the computer navigate a series of decisions at lightning speed.
Man looking at Alexa Speaker

What it isn’t

AI has had a rough time in terms of image. For many people it conjures up images of robots going mad and taking over the world. This is pure science fiction. The reality is that AI can be pretty basic – a good example of an AI you use regularly without knowing is the spam filter in your email.
But AI, and the machines that use it, will only ever be able to operate within the scope of the task they’ve been trained in. To put it another way, a machine can’t decide it wants to learn a new skill and go off and teach itself.
So you can sleep easy tonight that your Alexa isn’t plotting to take over the world.

The benefits to marketers

Using AI means that marketers can scale the number of campaigns and journeys they create and deploy, but without making those decisions manually. AI takes care of defining which campaign to send to each customer next, based on the different scenarios it’s been trained to respond to.
AI models can quickly analyse customer behaviours and determine the next-best-action for them, optimising marketing automation.
And this is where ‘machine learning’ comes into play as AI can grow to become more accurate, the more data it has to learn from. In practical terms this is an impossible task to perform manually, so the implications for marketers are game changing.
Because the technology side has been taken care of, marketers can then concentrate on the thing that’s most important: communicating with customers and nurturing relationships.
Customer with lots of shopping bags

A crystal ball

By analysing thousands of customer journeys, RedEye’s platform uses AI to accurately predict key moments in the customer lifecycle.
For instance, if you’re a marketer who has organised your data and already offering personalised communications, AI and automation takes things to another level in helping to understand individual customer behaviours and, crucially, predict how they will act in the future.
But this is more than just a crystal ball for marketers. This is about predicting behaviour and then taking specific actions to nudge or support them through the next step.
Identifying VIPs is a good example. Using a predictive model means you can see who your next VIP customers might be.
A predictive model, like the ones we use at RedEye, picks up attributes or similar behaviours of those who are now VIPs and uses that information to predict those among the rest of your customer base who are likely to become a VIP.
Using personalised communications you can segment and nurture these customers into becoming VIPs quicker and easier.
Travis Perkins buiding yard

Using AI-Driven marketing automation to identify VIP customers and those likely to churn

Travis Perkins, a leading builders merchants, used AI and predictive analytics to increase its VIP customer segment by 65%. In this example, the VIP model searched for patterns of behaviour that reflected the behaviour of current VIPs.
This gave Travis Perkins the opportunity to use multi-channel communications to engage those customers, encouraging them to join this incredibly valuable customer segment.

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About the author

Andy Gilhooley
Andy Gilhooley Marketing Manager

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