As I have written in this column earlier this year, the adoption of Artificial Intelligence (AI) tools in marketing has been growing rapidly over the past few years, and while many large companies have been at the forefront of this trend, small and medium-size enterprises (SMEs) have been hesitant in testing the waters. But should they not start to see the benefits of using AI tools to enhance their marketing efforts?
I guess the larger question in the minds of most SME owners is this: “Will we find AI tools for marketing cost-effective for our size?”
First, it's important to understand what AI tools can do for marketing. AI-powered tools can help SMEs to automate and optimise the marketing processes – from creating and distributing content to analysing data and improving customer engagement. This will lead to significant cost savings for bootstrapped businesses, as they can reduce the time and resources needed to carry out these tasks manually. For example, there are AI tools that can analyse data from various sources and provide insights that would have otherwise required a team of analysts to compile.
Customer data analysis, costs
Additionally, AI tools can help to personalise the marketing efforts, which can lead to higher engagement and conversion rates. By analysing customer data, an AI tool can create targeted marketing campaigns that are tailored to an individual customer's needs and preferences, making what management consulting firm Peppers and Rogers has been advocating for ages on one-to-one marketing. This opens up possibilities for more effective marketing and better return on marketing investment since SMEs can focus resources on the customers who are most likely to convert.
However, the cost of implementing AI tools could be the bigger concern for SME owners, as these tools may be expensive to develop and implement. Additionally, many SMEs may not have the expertise or talent needed to manage and maintain AI tools. Nevertheless, there are several options available for those who are interested in using AI tools for marketing.
Another option is to use off-the-shelf AI tools that are designed specifically for marketing. These tools are typically less costly than custom-built solutions and can be integrated into existing marketing systems with relative ease. Many off-the-shelf AI tools are designed with SMEs in mind too, and may offer pricing plans that are tailored to the needs and budgets of smaller businesses.
Third-party providers
SMEs can also work with third-party providers who specialise in AI-powered marketing solutions. They can help to develop and implement tools that are tailored to specific needs, and can provide ongoing support and maintenance. While this option may be more expensive than using off-the-shelf solutions, it can be a more cost-effective option than developing and maintaining custom-built solutions in-house.
As more companies adopt AI tools in their marketing processes, those who do not may fall behind in terms of efficiency, effectiveness, and Return on Investment (ROI). By embracing AI tools, marketers can gain a competitive advantage in their industries.
There are also some concerns about the use of AI in marketing. These include the potential for bias and the ethical implications of using AI to make decisions about individuals. AI tools can be biased if they are trained on biased data or if they are programmed with biased algorithms. This can lead to discriminatory marketing practices that unfairly target or exclude certain groups of people. The ethical implications of using AI to make decisions about individuals using their private data is a rising concern.
Practical applications
While AI tools can provide valuable insights, it can be challenging to interpret and apply these insights to real-world situations. This can lead to ineffective marketing strategies or misinterpretation of data.
Ultimately, whether or not AI tools are cost-effective will depend on a variety of factors including the specific needs and goals of the business, the available resources, and options. However, the benefits of using such tools in marketing (increased efficiency, improved customer engagement, and higher ROI, etc) suggest that SMEs should consider incorporating AI into their marketing.
In order to minimise the potential drawbacks of using AI tools in marketing, SME marketers should take the following key steps:
-Ensure that AI tools are trained on unbiased data and programmed with unbiased algorithms to avoid discriminatory marketing practices.
-Consider the ethical implications of using AI to make decisions about individuals and prioritize privacy and data protection.
-Work with a team of experts who can help interpret and apply the insights provided by AI tools to real-world situations.
-Evaluate the cost of implementing AI tools against the potential benefits and consider using off-the-shelf AI tools or working with third-party providers to reduce costs.
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