Machine Learning Reshapes the Marketing Landscape: EMERGING SOLUTIONS PROVIDE MARKETERS WITH INSIGHTS INTO PROGRAM EFFECTIVENESS, BUT THEY REQUIRE A HIGH DEGREE OF SKILL TO FINE-TUNE

By Korzeniowski, Paul | CRM Magazine, May 2018 | Go to article overview

Machine Learning Reshapes the Marketing Landscape: EMERGING SOLUTIONS PROVIDE MARKETERS WITH INSIGHTS INTO PROGRAM EFFECTIVENESS, BUT THEY REQUIRE A HIGH DEGREE OF SKILL TO FINE-TUNE


Korzeniowski, Paul, CRM Magazine


Marketing has been evolving from a discipline based on gut instincts to one relying on empirical data. In fact, marketing today is almost completely driven by data, and companies are collecting oceans of it, literally. By 2020, the world will have accumulated 44 zettabytes of information, up from 10 zettabytes in 2015, according to market research firm International Data Corp. (IDC). To put those numbers into context, one zettabyte of apples would fill the Pacific Ocean.

But collecting data is only the first step in the process. By itself, data does nothing. Its value only comes once corporations use it to garner insights that can then be used to improve the business. Given the sheer volumes of data available, that is no easy task. Using information to gain business insights is labor-intensive, requiring marketers to sift through reams of reports, correlate items in an ad hoc manner, make business decisions, and monitor their results.

Luckily, machine learning has finally reached a level of sophistication where it can help.

"Machine learning has become mainstream in marketing," says Colin Priest, director of product marketing at Data-Robot. "This is mainly due to increased competition, which forces innovative marketing teams to adopt new technologies that give them insights from data coming in from their multichannel touch points."

Machine learning, the next rung on the artificial intelligence ladder (see sidebar), turns information into action. It relies on algorithms to illustrate data point connections and generate reports. Since machine learning is a horizontal technology, marketers can apply it to any part of a customer engagement.

Companies can, for example, use the technology to measure marketing campaigns more granularly than in the past. With traditional newspapers, radio, and television, businesses blasted out advertisements and had no idea how they impacted customers. With search and social media enhanced by machine learning, they can now monitor where users click and gain more insight into the sales process.

Advertising is certainly one area where machine learning is widely used. "The most mature of the machine learning tools in marketing is programmatic advertising," says Andrew Frank, a vice president and distinguished analyst at Gartner. "Firms have been using sophisticated software for years now and know how to bid on real-time opportunities based on whether or not users are clicking on their ads."

Social media also generates oodles of information. Each day, more than 3.5 billion Snapchat videos are generated, and machine learning can also help marketers filter and use that content more effectively. "Machine learning tools enable companies to capture social sentiment and identify which customers are brand champions," says Gerry Murray, research director at IDC.

Customer service is another area of interest for machine learning, with 57 percent of executives believing its most significant benefit will be improving the customer experience, according to Forrester Research.

Rather than simply responding to random inquiries, companies can build models that anticipate what the consumer wants and respond proactively. For instance, if a customer picks up the phone after clicking through a website and ending up with an empty shopping cart, the representative who answers the call could deduce the customer was unable to find the specific product she wanted.

In addition, companies are relying on machine learning for segmentation analysis. They are trying to identify the high-value customers and determine how to serve them better, while at the same time trying to identify the low-value customers and limit the resources they consume.

MAKE IT PERSONAL

Personalization is one more area of emphasis. Marketers' ultimate goal is real-time personalized advertising that spans across all platforms and delivers optimized messaging to each customer. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Machine Learning Reshapes the Marketing Landscape: EMERGING SOLUTIONS PROVIDE MARKETERS WITH INSIGHTS INTO PROGRAM EFFECTIVENESS, BUT THEY REQUIRE A HIGH DEGREE OF SKILL TO FINE-TUNE
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.