The impact of AI in the communication between Brands and Consumers

The fast-changing environment of technology has made the world of brand management increasingly complex. To survive, brands need to raise the stakes, develop sharper strategies, provide holistic experiences, and gain a better understanding of their customers. Artificial intelligence (AI) is a field within technology that exhibits and imitates human intelligence and can assist with the challenges faced by brand managers.

In this article we will review how seven AI applications can contribute to different components within Brand Management.

Automated Customer Service

Customer service is a vital component of every business, and it’s a key factor in determining your customer satisfaction and loyalty. Companies who don’t invest in their customer service risk being seen as companies who don’t care about their customers' experience.

As artificial intelligence becomes more advanced, customer service tasks that once required human personnel are now being automated in order to increase efficiency, save costs as well as enhance the customer experience.

Chatbots are a great way to automate responses and provide customers with the requested information as well as respond to customer inquiries quickly and in real-time.

Automated Customer Service can improve your image in the eyes of consumers, as it conveys a high-tech image and improves the company's reputation.

Intelligent Advertisements

Intelligent advertisements use artificial intelligence to, in real-time, predict consumers’ behavioral patterns, interests, and touchpoints. This allows advertisers to deliver personalized messages that consumers actually want to hear.

Intelligent advertisements can also evaluate the effectiveness of the advertisements by collecting data regarding the audience’s response.

Recommendation Systems

Artificial intelligence can provide brand managers with suggestions to offer customers. The suggestions may be based on consumers’ search information, interests, and preferences. This technique allows customers to receive customized, relevant recommendations from AI systems that can help them find the products and services they want.

Recommendation systems can help to boost sales by providing shoppers with suggestions for additional products, or by allowing them to filter search results. Recommendations can also be influenced by time of day, season and public holidays.

Consumers are looking for personalized experiences with brands. Given this, Recommendation Systems may be an effective tool to build Customer Relationships.

Customer Segmentation Systems

Segmentation is often an important part of branding strategies and is used in differentiating one’s brand on the market. The digital era has made it possible to obtain a more detailed level of information based on customers’ online behavior, providing brand managers with new possibilities for identifying customer segments.

Brands can use artificial intelligence algorithms to identify patterns and natural groupings of customers within extensive data sets. This enables brands to target the right customers with relevant brand communications, increasing brand awareness among the appropriate segment.

Conversion Rate Optimization Systems

In order to convert users from browsing a website to taking an action on the website, businesses must make purchasing easy, registration simple and the overall user experience pleasant.

Conversion Rate Optimization Systems can evaluate the effectiveness of design options in real-time. This provides brands with an opportunity to improve their websites by identifying the version that best addresses consumer needs and makes it easy for them to convert.

By creating a better online experience, companies can increase customer satisfaction, which will have a positive effect on the company's brand image and the relationship between the company and its customers.

Dynamic Pricing

When consumers are making choices about which products to buy, they often consider price, among other things. Artificial intelligence makes it possible for brands to automatically adjust prices based on data regarding demand, consumer behavior, seasonality and competitors, optimizing value for customers.

Closing

It is critical that brand managers understand the importance of technological development and not be ignorant of its enormous potential. By implementing AI, brands become considered up-to-date, creating a positive effect on consumers' perception of the brand.

Brands need to implement artificial intelligence carefully and accurately in order to enhance rather than harm their brand management. Before a brand implements AI, it should first position itself in the market and build relationships with consumers. This will allow the brand to gather more extensive data while still maintaining trust and loyalty.