Machine learning is all the rage but what does it actually look like in practice, as part of a digital marketing strategy?
You've encountered a machine learning strategy if you've used a website that recommends products based on previous purchases. Machine learning is a facet of artificial intelligence (AI) that uses algorithms to complete specific tasks, such as product recommendations.
It can achieve a multitude of functions for digital marketers, including:
- Forecast targeting.
- Customer segmentation.
- Lifetime value modeling.
- Customer journey optimization.
- Smart bidding.
Machine learning has been in digital marketing for years. In fact, you are using machine learning whenever you use search engines. While still a new strategy for most, many businesses have begun implementing this technology into their marketing campaigns.
The original article, which you can reach via the link above, features eight interesting examples of machine learning in digital marketing. Here, we'll look at the first three:
- Chase: In 2019, the banking giant, Chase Bank, partnered with Persado to help create marketing copy for its campaigns. They challenged the AI company to generate copy that yields more clicks -- which they did. Examples of the machine learning generated copy are Human copy: "Go paperless and earn $5 Cash Back," and Machine-generated copy: "Limited Time Offer: We'll reward you with $5 Cash Back when you go paperless."
- Starbucks: With stores worldwide, Starbucks obtains a lot of data. Starbucks can access purchase insights and turn this information into marketing collateral with the Starbucks loyalty card and mobile app. This strategy is called predictive analysis. For example, machine learning collects the drinks each customer buys, where they buy them, and when they buy them, and matches this with outside data such as weather and promotions to serve ultra-personalized ads to customers. One instance includes identifying the customer through Starbucks' point-of-sale system and providing the barista with their preferred order.
- eBay has millions of email subscribers. Each email needed engaging subject lines that would cause the customer to click. However, delivering over 100 million eye-catching subject lines proved overwhelming to human writers. Enter machine learning. eBay partnered with Phrasee to help generate engaging subject lines that didn't trigger spam filters. Additionally, the machine-generated copy aligned with eBay's brand voice. Their results show success, with a 15.8% increase in open rates, 31.2% increase in average clicks, and over 700,000 incremental opens per campaign with more than 56,000 incremental clicks per campaign.