5 Ways to Improve Customer Conversion Rates with AI
- Feb 7, 2023
- 7 min read
AI for business? Old news, right? Wrong! Get ready to have your mind blown by how AI can boost your customer conversion rates in ways you never even imagined.
With digital marketing spending projected to reach a whopping $692.3 billion globally by 2024, AI is no longer a good-to-have but a must-have technology. Sure, coupons and discounts are a classic way to boost sales, but AI offers a better way. It lets you target the right prospects with personalized promotions tailored to each customer's unique attributes and purchase history.
This article explains how and why companies should let AI take the reins for skyrocketing conversion rates.
The Fundamental Flaw With Traditional Marketing
If you are in Marketing, you know the drill. You take your customer list, divide them into groups based on where they live or their age, and then send the same old coupon to all of them to boost sales.
But let's be real; everyone is different, and what might be a sweet deal for one person might not even catch the eye of the next. AI is set to change it all. It can help you personalize such coupons for each customer, catering to their unique preferences and behaviors.
For example, Starbucks uses AI to suggest different types of coffee to customers based on their previous purchases, the weather, the time of day, and even their taste preferences. That is the level of personalization AI can offer to improve customer conversion rates.
AI-Powered Personalization: Targeting the Right Prospects
Let's face it, we all love a good deal, but what we love even more is when that deal is explicitly tailored to us. So, it is no surprise that according to Accenture's "Personalization Check" report, four out of five customers would instead shop with a brand that offers personalization and recognition than those that don't.
And, this is further corroborated in a recent study by Epsilon, which claims that a whopping 80% of people are more likely to purchase from brands that deliver personalized experiences. So, why promote generic deals when you can hyper-personalize offers with AI?
It is time to step up your game and let AI take the reins. Use machine learning to analyze each customer's unique characteristics and data so you can present them with offers they are sure to find irresistible.
Ditch the old-school market segmentation—with AI, you will find that customers who were grouped using traditional methods may look very different once you dive deeper. By leveraging datasets with demographic and transactional information, and product and marketing campaign details, you can train a model that will predict which customers will likely redeem a coupon and why.
But it is not just about predictions; you can also integrate with your marketing automation platform. Imagine automatically initiating offers within your set business rules or visualizing a BI dashboard for your marketing managers to access.
In short, AI can help you target the right prospects with sharper personalization, leading to better response rates and happier customers.
5 Ways AI Can Improve Customer Conversion Rates
Forget the crystal ball; we are laying out the five sure-fire ways to level up your AI game. We have covered everything from boosting conversion rates to driving business results.
Prioritize Leads That Matter
Do not waste your time on leads that are going nowhere. Conversational AI helps you quickly sift through potential customers and focus on those most likely to convert.
Imagine having a handy little helper that can ask all the right questions and give you a ranked list of the hottest leads. Now that is some way to improve conversions! By asking targeted questions and analyzing customer responses, conversational AI can quickly assess the quality of a lead and provide you with a ranked list of the most promising prospects.
Engage Unresponsive Leads
Keep unresponsive leads hooked and ready to reel in with AI. A potential customer may not be prepared for your services, but they might be in the future. And who wants to miss out on that?
That is where AI takes care of the follow-up, so you do not have to. No more repetitive, boring follow-up emails—AI can craft unique, human-like language and adjust its approach, ensuring your lead does not forget about you and your business.
So, let AI handle those unresponsive leads and turn into hot prospects eager to do business with you. It is a win-win situation—you save time, they do not feel spammed, and you maintain that valuable connection.
Ensure Accurate Forecasting
A key aspect of successful marketing is clearly understanding which prospects to focus on and when to reach out to them. While an experienced marketer's intuition can be valuable, it is only sometimes possible to know which leads are most likely to convert into sales.
AI can analyze data from past sales and marketing and generate mathematically-sound sales projections that can guide your marketing efforts toward the most promising leads. The AI system constantly learns and improves through its data analysis, making it better equipped to identify prospects likely to need your services and deals that are likely to succeed.
For example, let’s say you run a B2B software company specializing in project management. Based on your previous sales data, the marketing AI system determines that prospects in the construction industry are the most likely to purchase your software.
The system then generates a sales projection that prioritizes outreach efforts towards leads in this industry, helping your marketing team make the most of their time and resources.
Accurately Consolidate Data
A thorough understanding of your target audience is crucial to boosting conversion rates. Targeting individuals not interested in your product or service wastes valuable resources such as time and money.
AI can efficiently analyze and consolidate customer data from various sources to create a comprehensive customer profile. This process can bring forth hidden insights about your ideal customer, which might have gone unnoticed by human marketers due to inherent biases.
As AI operates without biases, it can accurately identify patterns and trends in customer data, providing a more thorough understanding of your target audience. By incorporating these insights, businesses can improve their marketing efforts, reach their desired audience, and increase conversion rates.
Ensure a Higher Retention Rate
Imagine having the power to predict which customers are at risk of leaving and being able to reach out to them before it is too late. With AI and its predictive analytics capabilities, you can do precisely that.
By analyzing how customers use your product, AI can uncover potential issues, show where customers seek more functionality, and even reveal what product elements are underutilized. This information equips you with the knowledge you need to offer personalized support and deals, ensuring that your customers stay happy and return for more.
Plus, you will know what aspects of your product to focus on in your research and development efforts to keep your customers happy and satisfied.
In conclusion, incorporating AI into your marketing strategy can be a game-changer in boosting customer conversion rates. With its ability to analyze customer behavior and provide personalized insights, you will be able to offer a seamless and satisfying customer experience that will keep them coming back for more.
To get started, contact Growth Natives today. Our industry experts can guide you and help you take advantage of the power of AI and boost your conversion rates.