What Are AI And AR Technologies?
Artificial Intelligence (AI)
AI is defined as a collective set of multiple technologies that help computers in performing advanced functions by acting as a simulation of human intelligence. AI in marketing provides automated decisions that are based on collected data of the audience from their collective actions. In simple words, AI reduces human interaction or efforts by analyzing and observing customer profiles to serve marketers with tailored tactics.
Augmented Reality (AR)
Augmented Reality is the technique of creating an interactive environment that combines digital information and real-world content together. In terms of marketing, AR includes attractive visuals, audio, and other sensory information about real-world practices that enhances individual experiences. In short, AR allows individuals the convenience of getting immersed in the desired services and products using their mobile devices.
Market Predictions of AI & AR- Stats
The impact of both AI and AR is addressed closely by marketers across boundaries and almost every business is trying to leverage its excellent benefits. The recent revenue generation with AI integration in marketing was around 15.84 billion US dollars in 2021 which is expected to grow to the value of around 107.5 billion by the year 2028.
AR technology tools have also forayed the aspects of marketing. Now, around 66% of people wish to use AR technology tools while shopping for products. The future prediction depicts that around 71% of the population is likely to shop more with AR-integrated tools and platforms. And the total market revenue generation is expected to grow up to $50 billion by the year 2024.
How are AI and AR Used in Marketing?
Use Cases Of AI
1. Conduct Sales Forecasting
Planning your sales or marketing strategy as per the customer requirements/expectations is one of the best ways to achieve success in any business. And AI excellently helps in doing that.
The AI technology predicts customer expectations based on their previous purchase history and collected data. This technique helps marketers to promote particular products and services as per the market need that drives higher sales and supports in balancing inventory.
2. Allows Natural Language Processing
Natural language processing (NLP) is the technique that clearly understands the human voice to get deep insights into language. It basically understands the intentions of the audience and helps marketers in the creation of more efficient and smarter marketing strategies.
The technology aids in developing content, personal experiences, data analysis, competition tracking, and enhancing the experience of customer service bots for users.
3. Ensures Automated Image Recognition
Marketing strategies hit better when they are targeted to the desired customers. The use of AI tools helps in facial recognition which provides deep insights about individual profiles in a better way.
Some of the big brands like Amazon, Pinterest, and Facebook use AI face recognition tools to identify people, images, videos, and objects that help users in tagging and find their friends automatically.
Moreover, marketers can also use this technology to send real-time discounts, offers, and other sets of customized messages to customers individually.
4. Promotes Dynamic Pricing
Personalized pricing is one of the greatest strategies for managing customer loyalty. The AI technology is used to analyze the customer’s data and purchasing patterns including searches, history, cookies, and other activities, and based on this analysis, it suggests the pricing strategy.
One of the best examples of dynamic pricing is the ride-sharing app. These price fluctuations on such apps are decided on the demand and supply basis i.e. with an increase in demand the price rises and vice-versa.
5. Craft Personalized Customer Experience
Delivering personalized content and providing offers as per the customer’s needs helps in better customer retention. Marketers integrate AI-generated tools and techniques in their marketing strategies to understand individual customer needs.
AI tools excellently provide custom product recommendations based on past purchased items and suggest the best option that customers will definitely like. In this way, AI excellently improves the customer experience in real-time and drives more sales and engagement.
Use Cases Of AR
1. Allow Visit To The Virtual Shop
Heavy workloads, busy schedules, and an increase in poor human health are the factors abstaining people from visiting physical stores and malls. But with the use of AR, users have been given easy access to virtual stores. The users are now able to experience the products and services virtually using the app and even try the product for a better experience.
Recently, the Mercedes brand has launched the AR version of their store where customers are allowed to experience the features of the new automobiles. The integration of AR technology to highlight this feature can help the brand to build better customer connections and increase the overall sales ratio.
2. Ensures Better Brand Promotion
Virtual reality helps in creating a whole new connection between the brand and the customers by delivering a high-impact presentation of the products and services available. The brand promotion and display of deep research and information become easy. Recently, marketers have started placing QR codes in their product packaging that allows customers to fetch essential information and data instantly. Some of the well-known FMCG brands like Coke and Pepsi have created a strong market buzz in the market.
3. Improves B2B Market Strategy
The VR tools and technology help in simplifying the overall chain of sales by bridging the gap between customer expectations and suppliers’ ability to realistically offer the products and services. It is especially useful when the dealers have to deal across geographies.
Virtual reality eliminates the burden of taking thick and heavy brochures, flyers, and other promotional models used in traditional times. Now marketers and suppliers are able to present 360 degrees view of their offerings in an improved manner using Augmented reality tools. Thus, it can help in making the brand more favorable for the customers.
4. Offers Augmented Brochures and Catalogues
The brochures and catalogs can become more interesting by adding the virtual reality factor to the elements printed on the brochures. The AR will enable better interaction of the customers with the brand and help marketers in getting the desired marketing result. Also, the AR factor can let the customers jump on directly the website where they can find related information about the business. Thus, AR eliminates the extra space taken up on the brochures.
5. Boosts Sales by Offering Try Before Buy Feature
Purchase decisions of customers become more conscious when they are backed by known proof. The VR technology allows easy virtual trials of the products before the customers actually buy them. This technological advancement not only gives users a better perspective but allows them to explore multiple options without exposing themselves to unsafe public places.
The trend has got a higher boost, especially after the pandemic, and now helping both marketers and customers in enhancing the shopping experience. Now, with just a few clicks, customers can try clothes, accessories, and makeup, or can test cushions, bedsheets, furniture, and more.
Considering the mountains of customer data, your team wouldn’t have the time to wrestle every day, and to cope with such a situation, integrating technology in the organizations is the best way.
Always remember that even if you are adopting a small bit of AI & AR into your organization, every single step towards a tech-powered future will definitely boost your brand.
Upscale your marketing strategies to leverage abundant data points and optimize the measurement of the such framework as per decided targets and metrics of your business.
Now is the time to crush all your revenue goals and take yours ahead in this accelerating competitive world.
Get more insights and details about how AI and AR can be applied to the modern retail and e-commerce industry and how organizations can leverage the emerging tech trend to their benefit.