Why Machine Learning Should Be a Part of Your Marketing Strategy

Today’s strategic marketing departments are looking to do more with the data that’s available to them. But for anyone who has started down this journey, you soon realize that having a lot of data doesn’t automatically translate into having a lot of actionable information.

One technique to consider is leaning on machine learning technology to pull out some of that actionable information. That idea might have already crossed your mind; in fact, a joint study by Google and MIT found that 74% of the marketers surveyed believe their organization’s current goals would be better achieved with greater investment in machine learning and automation.

So what are some ways machine learning has helped forward-thinking companies deliver an impactful customer experience, and how can it tactfully help marketers do more with their data?

Personalized Content

Tech corporations like Amazon and Google have been using machine learning for a long time, and the results have elevated them to a level of success the world has never seen before. But machine learning is no longer just for large tech companies. Marketers are understanding that machine learning can be a secret weapon in delivering a personalized customer experience, and that means the gates are wide open for who should be leveraging this type of technology.

McDonald’s in 2019 paid $300 million to acquire an artificial intelligence startup to begin trying its hand at personalizing every step of the customer journey. As its CEO at the time of the acquisition, Steve Eastbrook put it this way: “How do you transition from mass marketing to mass personalization? To do that, you’ve really got to unlock the data within that ecosystem in a way that’s useful to a customer.”

One of McDonald’s first ideas to unlock and leverage this data is to personalize a restaurant’s digital drive-through menu boards, based on the customer’s previous orders and preferences. Recommending relevant up-sell items or deals can drive up the revenue per transaction, all while simplifying and speeding up the customer’s ordering process.

This acquisition also moves McDonald’s forward in being able to deliver personalized experiences through all of its digital channels, including its in-store kiosks and mobile app. All of these interactions can now become extremely relevant to the customer, while increasing sales and cutting waste for McDonald’s — win-win.

Execute A/B Testing

Gartner in 2011 predicted that 85% of a customer’s relationship with a business will be managed without human interaction by 2020. As marketers, we must develop hands-off ways to learn from how our brand is resonating with our customers and be agile enough to optimize our strategies and change course when necessary. Historically we’ve tried to do this through A/B testing; however, machine learning can take routine A/B testing to the next level. Just look at what Netflix does.

Netflix has a goal of keeping our attention for as long as possible. You can try to blame it on quarantine, but there is no denying that it is pretty good at it. One way Netflix utilizes machine learning is through the selection of the thumbnail image it uses to promote a particular show. You were probably already aware that the shows suggested to you are unique compared to other users, but it goes further than that.

A typical 1-hour Netflix episode consists of roughly 86,000 still video frames. Netflix has decided that those are 86,000 potential thumbnails that could capture a user’s attention, and it uses machine learning to analyze the metadata behind each of those images to identify the best ones to use as thumbnails on users’ screens.

But it also uses machine learning and A/B testing to determine which of the best identified thumbnails would resonate most with you. Are you more of a comedy fan? The image chosen will depict a lighter part of the show, perhaps with the main characters smiling or laughing. If you are more into thrillers the image might look more suspenseful. You’ll notice that even your individual thumbnails will change over time, all in an attempt to get you to click and watch.