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AI in Marketing
by Andriy Kushnarov, Lean Startup HH
ABOUT ME
▰ Experience in IT: 18+ years (I wrote my first line of code when I was 15)
▰ Experience in Product: 6+ years
▰ Everyday job: IT and Product Consulting
▰ Hobby: Bicycle
▰ Goal for today: Inspire you to start using AI
2
HOW I STARTED WITH AI
▰ Chat bot 🤖
▰ Machine Learning in FinTech 💰
▻ Online credits: credit score based on the ML Models
▻ Credit consulting: ML Models suggest which bank will give a credit
with the best interest
3
AI IS NOT NEW
4
WHAT ELSE AI CAN DO FOR YOU
▰ Helps to save environment / ecology
▰ Helps to stay healthy / predict disease
▰ Helps to move
▰ Helps to improve relations in society
▰ Helps in sport
▰ Helps to study???
5
6
7
Artificial
Intelligence
Machine
Learning
8
Source: Machine Learning Marketing
Prospect
Visitor
Sale
CLTV
● Detailed targeting / ads personalisation
● Budgeting and bidding
● Content strategy
● Website personalisation
● Recommendations
● Upsale
● Reactivation, remarketing
● Assistance (e.g. voice / text chat)
● CLTV Prediction
● Churn prediction
● Customer feedback
● Errors recognition
● Plan demand
● Plan marketing budget
● Analysis / audiences building
Planing
9
AI IN SALES FUNNEL
PLAN DEMAND
▰ Alaska Airlines open new routes based on search data as a proxy of
demand
▰ Healthcare company monitors weather and epidemic data to manage
their bids based on geo location
▰ Demand prediction in supply chain planning (SCP) (link)
10
PLAN MARKETING BUDGETS
▰ Google Ads keyword planner
▰ Google trends
▰ Facebook Ads
▰ Cross-channel planning
11
12
Predictive Customer Lifetime
Value
SUCCESS STORY: PREDICTIVE CLTV
What was done:
▰ Predictive CLTV model was applied on 1P data
▰ Retargeting based on the built audience
Result:
▰ 40% increase in revenue
▰ 33% decrease in Cost Per Acquisition (for search)
▰ 37% decrease in Effective Revenue Share (for search)
13
Source
14
Common sources of 1st party data
Point-of-sale data Email lists CRM data Remarketing lists Analytics data
Opportunities
Use in-app browsing and
behaviour data from your
mobile apps
Mobile
app
Strengthen loyalty programs
that can attract new
consumers while increasing
consumer retention rate and
total transaction value
Loyalty
programmes
Leverage partnerships with
retailers (e.g. discount
stores, warehouse stores)
to acquire valuable,
transactional data
Partnerships
Establish a YouTube brand
channel to identify and target
consumers who directly
engage with your content
YouTube
channel
Create quality content that
pulls new consumers
towards your products
Blog / Newsletter
sign-ups
1P + 3P MARKETING DATA INTEGRATION
15
Campaign Cost
Campaign A €223
Campaign B €123
Campaign C €643
Campaign D €302
CLTV
€3600
€100
€480
€3200
3P Marketing data 1P CRM data
CRM
1) User browses
your site
2) After transaction,
track CRM ID
DATA ENRICHMENT
▰ 3d party data sources
▰ 1st party data sources
▰ … more data
16
Source
17
Personalisation
CHALLENGE YOUR MARKETING PERSONA
▰ Unsupervised Machine Learning: Clustering
18
Source
CLUSTER BASED PERSONALISATION
▰ Personalised ads
▰ Personalised website layout
▰ Personalised user experience
▰ Personal offers
▰ Personal up-sale / x-sell options
▰ Personal communication
19
Personalise for each audience
Personalisation in Ads:
- Connect audience to 3P marketing
tool (e.g Facebook, Google, etc.)
- Apply segmentation in E-Mail
Marketing
- Adjust UX based on the audience
(e.g. Google Optimize, Optimizely)
Manage your customer data
Companies use data warehouse
(data lake) to analyse their data,
e.g.: BigQuery, Snowflake, etc.
To visualise data: Tableau,
Looker, DataStudio, etc.
Web analytics: Google Analytics,
GA360, Adobe Analytics, etc.
Build audiences
Apply right machine learning
models to your data to predict:
- Propensity to convert
- CLTV
- Churn prediction
Tools: R, Tensor Flow,
PyTourch, AutoML, etc.
21
Predictive Marketing
PREDICT SUCCESS OF YOUR CREATIVES
▰ Computer vision can be used to analyse creatives
▰ Based on the conversion statistics predict success
22
Source
More creatives w/ attribute
Attribute
performing
better
Keep
it up!
Explore!
Avoid.
23
24
AI based assistance / loyalty
HOTELS CHAIN: BETTER UNDERSTANDING OF
THE CUSTOMER
With 4000+ hotels worldwide and a high end position brand, customer
experience and feedback are critical for their business. One of the
largest unused feedback sources was the 1.4 million reviews in
Google maps.
Company better understands drivers of satisfaction/ratings
leveraging machine learning to analyze guest reviews on Google My
Business/Maps.
AI Tools: Natural Language Processing, sentiment analysis.
25
FACIAL RECOGNITION TECHNOLOGY IN
MARKETING
App Facedeals aimed to target customers with special offers from
businesses they frequent by integrating facial recognition with their
Facebook profiles. Specifically, facial recognition cameras would be
installed at the business entrance which would recognize customers
as they enter. Simultaneously, the customer would receive a
notification of a customized deal to their smartphone based on his or
her Facebook “Like” history.
AI tools: Computer Vision, Facial recognition
Source
26
GOOGLE DUPLEX: AI DOES RESERVATIONS FOR
YOU
27
AMAZON SUMERIAN: AI BASED 3D
ASSISTANT/CONCIERGE
28
29
Part #2: AI adoption Strategy
and Mistakes
MISTAKE #1: TO START USING AI, I SHOULD BE
AN EXPERT IN AI
As a Business or Marketing person
you should know what AI can do
for you.
30
MISTAKE #2: AI IS SIMILAR TO IT, JUST PLUG
AND PLAY
AI = Software + Data + Intelligence
IT = Software technology
31
MISTAKE #3: PLAN AI PROJECTS LIKE IT
PROJECTS
32
Plan:
Problem Solution
Reality:
Problem Solution
MISTAKE #4: 100% DECISIONS ARE MADE BY
MACHINE
33
MISTAKE #5: WE CAN DO WITH CUSTOMER DATA
WHAT WE WANT
34
AI ADOPTION STRATEGY
▰ Make clear goals (short and long term ones)
▰ Set the right expectations (time + data + people)
▰ Choose the project, start small (start from one where you
know your data the best)
▰ Organise Cross-Functional team (data people and
subject-matter experts) 35
36
Open discussion:
▰ Your experience
▰ Your learnings
▰ Your mistakes
37
THANKS!
Any questions?
CONTACT INFORMATION:
Web: Meetup
Email: andriy@software-it-outsourcing.com

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Ai in marketing: How Business & Marketing can benefit from adopting AI & ML

  • 1. AI in Marketing by Andriy Kushnarov, Lean Startup HH
  • 2. ABOUT ME ▰ Experience in IT: 18+ years (I wrote my first line of code when I was 15) ▰ Experience in Product: 6+ years ▰ Everyday job: IT and Product Consulting ▰ Hobby: Bicycle ▰ Goal for today: Inspire you to start using AI 2
  • 3. HOW I STARTED WITH AI ▰ Chat bot 🤖 ▰ Machine Learning in FinTech 💰 ▻ Online credits: credit score based on the ML Models ▻ Credit consulting: ML Models suggest which bank will give a credit with the best interest 3
  • 4. AI IS NOT NEW 4
  • 5. WHAT ELSE AI CAN DO FOR YOU ▰ Helps to save environment / ecology ▰ Helps to stay healthy / predict disease ▰ Helps to move ▰ Helps to improve relations in society ▰ Helps in sport ▰ Helps to study??? 5
  • 6. 6
  • 9. Prospect Visitor Sale CLTV ● Detailed targeting / ads personalisation ● Budgeting and bidding ● Content strategy ● Website personalisation ● Recommendations ● Upsale ● Reactivation, remarketing ● Assistance (e.g. voice / text chat) ● CLTV Prediction ● Churn prediction ● Customer feedback ● Errors recognition ● Plan demand ● Plan marketing budget ● Analysis / audiences building Planing 9 AI IN SALES FUNNEL
  • 10. PLAN DEMAND ▰ Alaska Airlines open new routes based on search data as a proxy of demand ▰ Healthcare company monitors weather and epidemic data to manage their bids based on geo location ▰ Demand prediction in supply chain planning (SCP) (link) 10
  • 11. PLAN MARKETING BUDGETS ▰ Google Ads keyword planner ▰ Google trends ▰ Facebook Ads ▰ Cross-channel planning 11
  • 13. SUCCESS STORY: PREDICTIVE CLTV What was done: ▰ Predictive CLTV model was applied on 1P data ▰ Retargeting based on the built audience Result: ▰ 40% increase in revenue ▰ 33% decrease in Cost Per Acquisition (for search) ▰ 37% decrease in Effective Revenue Share (for search) 13 Source
  • 14. 14 Common sources of 1st party data Point-of-sale data Email lists CRM data Remarketing lists Analytics data Opportunities Use in-app browsing and behaviour data from your mobile apps Mobile app Strengthen loyalty programs that can attract new consumers while increasing consumer retention rate and total transaction value Loyalty programmes Leverage partnerships with retailers (e.g. discount stores, warehouse stores) to acquire valuable, transactional data Partnerships Establish a YouTube brand channel to identify and target consumers who directly engage with your content YouTube channel Create quality content that pulls new consumers towards your products Blog / Newsletter sign-ups
  • 15. 1P + 3P MARKETING DATA INTEGRATION 15 Campaign Cost Campaign A €223 Campaign B €123 Campaign C €643 Campaign D €302 CLTV €3600 €100 €480 €3200 3P Marketing data 1P CRM data CRM 1) User browses your site 2) After transaction, track CRM ID
  • 16. DATA ENRICHMENT ▰ 3d party data sources ▰ 1st party data sources ▰ … more data 16 Source
  • 18. CHALLENGE YOUR MARKETING PERSONA ▰ Unsupervised Machine Learning: Clustering 18 Source
  • 19. CLUSTER BASED PERSONALISATION ▰ Personalised ads ▰ Personalised website layout ▰ Personalised user experience ▰ Personal offers ▰ Personal up-sale / x-sell options ▰ Personal communication 19
  • 20. Personalise for each audience Personalisation in Ads: - Connect audience to 3P marketing tool (e.g Facebook, Google, etc.) - Apply segmentation in E-Mail Marketing - Adjust UX based on the audience (e.g. Google Optimize, Optimizely) Manage your customer data Companies use data warehouse (data lake) to analyse their data, e.g.: BigQuery, Snowflake, etc. To visualise data: Tableau, Looker, DataStudio, etc. Web analytics: Google Analytics, GA360, Adobe Analytics, etc. Build audiences Apply right machine learning models to your data to predict: - Propensity to convert - CLTV - Churn prediction Tools: R, Tensor Flow, PyTourch, AutoML, etc.
  • 22. PREDICT SUCCESS OF YOUR CREATIVES ▰ Computer vision can be used to analyse creatives ▰ Based on the conversion statistics predict success 22 Source
  • 23. More creatives w/ attribute Attribute performing better Keep it up! Explore! Avoid. 23
  • 25. HOTELS CHAIN: BETTER UNDERSTANDING OF THE CUSTOMER With 4000+ hotels worldwide and a high end position brand, customer experience and feedback are critical for their business. One of the largest unused feedback sources was the 1.4 million reviews in Google maps. Company better understands drivers of satisfaction/ratings leveraging machine learning to analyze guest reviews on Google My Business/Maps. AI Tools: Natural Language Processing, sentiment analysis. 25
  • 26. FACIAL RECOGNITION TECHNOLOGY IN MARKETING App Facedeals aimed to target customers with special offers from businesses they frequent by integrating facial recognition with their Facebook profiles. Specifically, facial recognition cameras would be installed at the business entrance which would recognize customers as they enter. Simultaneously, the customer would receive a notification of a customized deal to their smartphone based on his or her Facebook “Like” history. AI tools: Computer Vision, Facial recognition Source 26
  • 27. GOOGLE DUPLEX: AI DOES RESERVATIONS FOR YOU 27
  • 28. AMAZON SUMERIAN: AI BASED 3D ASSISTANT/CONCIERGE 28
  • 29. 29 Part #2: AI adoption Strategy and Mistakes
  • 30. MISTAKE #1: TO START USING AI, I SHOULD BE AN EXPERT IN AI As a Business or Marketing person you should know what AI can do for you. 30
  • 31. MISTAKE #2: AI IS SIMILAR TO IT, JUST PLUG AND PLAY AI = Software + Data + Intelligence IT = Software technology 31
  • 32. MISTAKE #3: PLAN AI PROJECTS LIKE IT PROJECTS 32 Plan: Problem Solution Reality: Problem Solution
  • 33. MISTAKE #4: 100% DECISIONS ARE MADE BY MACHINE 33
  • 34. MISTAKE #5: WE CAN DO WITH CUSTOMER DATA WHAT WE WANT 34
  • 35. AI ADOPTION STRATEGY ▰ Make clear goals (short and long term ones) ▰ Set the right expectations (time + data + people) ▰ Choose the project, start small (start from one where you know your data the best) ▰ Organise Cross-Functional team (data people and subject-matter experts) 35
  • 36. 36 Open discussion: ▰ Your experience ▰ Your learnings ▰ Your mistakes
  • 37. 37 THANKS! Any questions? CONTACT INFORMATION: Web: Meetup Email: andriy@software-it-outsourcing.com