Banks and their need for personalized marketing
When you think of digital marketing, you immediately think of pay-per-click (PPC) campaigns for Google Adwords and Facebook that are managed with an in-house marketing team or external agency. What do these two things have in common?
According to Business Insider Intelligence, artificial intelligence in front office banking has the potential to save $199 billion dollars. While AI is most commonly linked to conversational banking, personal insights, and AI biometrics technology, its core beneficiary is essentially linked to marketing. The most common uses include real-time personalization, data analysis, automated decision making, and natural language processing.
AI leveraged digital marketing
Artificial intelligence is helpful in supporting relationship banking with customers, but it can also be used to generate leads for your financial institution. AI marketing is a form of marketing that leverages artificial intelligence to create automated decisions based on data collection, data analysis, and other additional information that impacts decision-making. In other words, AI marketing has the potential to replace digital marketing in the near future.
According to Reportlinker, the Digital Advertising and Marketing market in the United States is an estimated $87.1B in 2020. This industry deals with tens of billions of dollars on paid campaigns and is optimized solely by humans. However, the adaption of machine-learning algorithms can push your company over the edge by taking advantage of new optimizations with bidding, copywriting, and targeting.
No more impersonalized ad campaigns and thoughtless segmentations. No more human error. Optimize your target audiences more efficiently with artificial intelligence. Big data allows AI marketing tools to group audiences and create personalized advertisements. Are you a student? Fresh college grad? Stay at home mom? Entrepreneur? Narrow down your audience and recommend products based on the demographic’s needs.
The streamlined process of chatbots
According to Mobile Marketer, 40% of millennials claim to engage with bots on a daily basis. As we covered in a previous article, millennials and Gen Z customers are now the majority of the job market. Financial institutions are targeting younger audiences by converting their traditional banking techniques to more digital-friendly ways by going digital-first and implementing chatbots.
Basic tasks such as loan inquiries, account statements and details, and balance inquiries are efficiently handled by bots. However, great potential also lies with smart chatbots. Different from regular chatbots, smart chatbots will be able to create leads, engage with prospective sales, and create originally generated responses for customer service.
Behavior and predictive analysis for customer insights
Humans often make decisions based on behavioral patterns, which means their actions in the future can be predicted. The capabilities that artificial intelligence holds is moving far beyond historical data. Predictive analysis is creating useful insights that offer suggestions on how to improve customer relations. Innovative algorithms with artificial intelligence in banking are bringing the best decisions to the table.
Data scientists joining marketing divisions are becoming much more common because big data is being tied together with marketing. The sheer amount of data collected that can be analyzed sets human limitations. Artificial intelligence uses big data analysis and machine learning to overcome human limitations and provide companies insights into their customers.