- Artificial Intelligence Marketing
Artificial Intelligence Marketing (AIM) is still at an early stage but the widespread of high performant and affordable technologies and the advance, documentation and approachability of
Artificial Intelligence mean that AI is now a more plausible solution to the pursuit of the one to one customer relationship. There is no doubt that this is a growing area and formalisation in this type of marketing activities will occurs in the coming years.AIM is a form of
Direct marketing leveragingDatabase marketing techniques as well as AI concept and model such asMachine Learning andBayesian Network . The main difference resides in the reasoning part which suggests it is performed by computer and algorithm instead of human.Behavioral Targeting
Artificial Intelligence Marketing provides a set of tools and techniques that enable
behavioral targeting .Collect, Reason, Act
Artificial Intelligence Marketing principle is based on the
Perception -Reasoning -action cycle you find inCognitive science . In marketing context this cycle is adapted to form the collect, reason and act cycle.Collect
This term relates to all activities which aims at capturing
customer or prospect data. Whether takenonline oroffline these data are then saved into customer or prospect databases.Reason
This is the part where data is transformed into information and eventually intelligence or
Insight . This is the section where Artificial Intelligence andMachine Learning in particularly have a key role to play.Act
With the intelligence gathered from the "reason" step above you can then "act". In Marketing context act would be some sort of communications that would attempt to influence a prospect or customer purchase decision using
incentive driven messageAgain Artificial Intelligence has a role to play in this stage as well. Ultimately in an unsupervised model the machine would take the decision and act accordingly to the information it receives at the "collect" stage.
Machine Learning
"
Machine Learning is concerned with the design and development ofalgorithm s and techniques that allow computers to "learn"."As defined above Machine Learning is one of the techniques that can be employed to enable more effective behavioral targeting
Concerns
As mentioned in the
behavioral targeting article :"Many online users & advocacy groups are concerned about
privacy issues around doing this type of targeting. This is an area that the behavioral targeting industry is trying to minimize through education, advocacy & product constraints to keep all information non-personally identifiable or to use opt-in and permission from end-users (permission marketing)."References
*Baesens Bart, Stijn Viaene, Dirk Van den Poel, Jan Vanthienen, and Guido Dedene.(2002), “ [http://econpapers.repec.org/paper/rugrugwps/02_2F154.htm Bayesian Neural Network Learning for Repeat Purchase Modelling in Direct Marketing] ”, "European Journal of Operational Research", 138 (1), 191-211.
*Lou Hirsh (2002), " [http://www.crm-daily.com/perl/story/18001.html How Artificial Intelligence Decodes Customer Behavior] ", "CRMDaily.com".
*Yahoo Research Center [http://research.yahoo.com/Machine_Learning Machine Learning] .
Wikimedia Foundation. 2010.