With the rapid evolution of technology over the last decade, Artificial Intelligence (AI) has become a household name. It is used on our phones, in our homes, and more recently, in our marketing. Most of the world’s biggest brands have implemented AI into their marketing strategies and systems to improve customer experiences and data analysis.
Some examples of AI in marketing include streaming platforms using machine learning to provide personalised content recommendations, shopping brands gathering detailed insights on their customers to recommend products, or brands using voice activation to simplify the shopping process.
In this blog we highlight five examples of brands utilising AI technology in their marketing strategies.
1) Coca-Cola
Coke is the latest company to jump onto the AI trend with a new partnership between management consultancy Brain & Company and OpenAI. Using tools like ChatGPT and DALL.E, Coke will generate a digital image to enhance its marketing and improve operations. AI will create personalised advertising and unlock new operational efficiencies.
ChatGPT solutions can get a lot of things wrong as it can communicate misinformation confidently or behave in odd ways. Using AI Coca-Cola is using technology to produce their own unique purchasing experiences. In Japan, customers can now use their smartphones to access a vending machine loyalty scheme. By downloading the new Coke On app, customers can collect points every time they visit a machine by connecting their phones to it. In future purchases, they can redeem those points, giving customers more reason to use a Coca-Cola vending machine over competitors.
AI is being utilised as a different purchasing option throughout Australia, New Zealand and the United States, by allowing customers to pre-order two drinks at a time via the app, which then can be collected from the machine. These new advances in AI technology allows Coca-Cola to bank huge volumes of data which can be integrated to generate further marketing decisions while offering personalised and unique purchasing experiences for the customers.
AI used: ChatGPT and app ordering.
2) Amazon
Amazon became one of the first companies to use AI to enhance customer experiences with personalised shopping recommendations. Over the years, Amazon has reorganised the structure to integrate AI into every part of the company to become the biggest ecommerce website in the US.
Its main use of AI is to generate personalised product recommendations. This allows the algorithms to make suggestions based on the customers past purchases, but also other items that customers have purchased based on the searching and browsing behaviour. Due to this, Amazon can nudge customers into buying more items by predicting what each customer is likely to buy.
In 2014, Amazon debuted its Alexa-powered Amazon Echo devices; an AI assistant which is available in 15 languages and 80 countries. Alexa devices use voice-enabled ecommerce for customers to find products and complete purchases all via voice control, while creating the convenience for giving reminders and recommendations about their purchases.
AI used: personalised shopping recommendations, voice-enabled ecommerce, personalised product purchases, reminders and recommendations via voice control.
3) Nike
Nike is the world’s largest sports apparel company and with help from AI the brand continues to grow. Nike uses AI to engage customers by launching customisable experiences; Nike launched a system that allowed customers to design their own sneakers in store and online.
Customers can choose specific shoes, colours and designs to make sneakers compatible to lifestyles and personalities. Not only did this drive sales, but also collected data which is analysed through algorithms that can be used to design future products and deliver personalised recommendations for future needs.
AI used: customisable products.
4) Netflix
Netflix has always had a progressive approach to AI. Generating data collected by consumer, AI-driven machine learning technology can provide personalised content recommendations based on watchers’ preferences, and what they have watched and enjoyed in the past.
Data shows over 80% of the shows being watched are now based on personal recommendations. This algorithm is beneficial for Netflix, as well as e-commerce brands, as it has the potential to increase sales by offering personalised recommendations on content or products. AI is also incorporated to automatically adjust streaming quality to avoid buffering or quality issues.
AI used: personalised content recommendations
5) Sephora
Global beauty brand Sephora is paving the way for AI use in the beauty industry. By incorporating a wide range of AI technology across their stores and their app, Sephora has created a seamless shopping experience for their customers. Tools that have been incorporated include:
· ChatBots – 2 bots for messenger to enhance ways for customers to engage with Sephora by streamlining accessibility to relevant services and product information.
· Sephora Visual Artist – allows customers to have virtual makeovers, star in their own tutorials and share with friends more easily. It helps people find their personal shades whether that’s foundations, eyeshadows, or lip colours without stepping foot in a store.
· Colour IQ– A device that scans the surface of customers skin that assigns it Colour IQ number which provides scientifically precise foundation colour matching.
· Fragrance IQ- Sephora has partnered with Inhalio to provide a dry scent for customers to smell the fragrance of perfume without trying it on.
These developments in technologies are driving customer engagement and leading to increased purchases while providing quality shopping customer experiences.
AI used: ChatBots, virtual try-on assistance.
As we can see, big brands have been utilising AI for many years and have seen successful results. However, although AI has many benefits for both major brands and small businesses, if it is not integrated correctly, it can be harmful for your brand. It’s important not to purely rely on AI, and to always review any information generated from AI technologies.
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