Potential applications of machine learning are very broad indeed. But, although AI conjures up images of robot butlers and promises big changes to customer experience, marketing teams who are already making use of AI-powered tech are doing so to sell.
Machine learning refers to statistical approaches to train models which incrementally improve the output of a system. This sort of predictive modelling is used to increase the likelihood that a customer will take a particular action – this could be opening an email, clicking an ad or viewing a recommended product.
Marketers are therefore mostly using machine learning in their push for personalisation – fuelled by a desire to improve sales. To put it simply, data scientists will use a variety of data – purchase history, demographics, browsing behaviour, etc – in order to predict a next best action such as what message to send, in what medium, at what time, and so on.
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