Behavioral Data & Artificial Intelligence: The Keys to Marketing Personalization appeared in Digital Dealer Magazine. Below is an excerpt. You can access the full article here.
It’s simple. Without good sources of data, you can’t have artificial intelligence (AI). In fact, 97% of Fortune 1000 executives from companies such as Ford, American Express, and Verizon responded to a recent survey that they are investing in or launching big data and AI initiatives; reinforcement that data and AI are inextricably intertwined. AI simply can’t find and respond to profitable patterns unless it has good data in the first place.
Behavioral data is so important because, unlike demographics, behavior changes all the time. Understanding behavior allows marketers to respond to actual intent, rather than rely solely on educated guesses based on demographic segmentation. I promise you, in real time, Amazon cares far less about your identity than it cares that you are suddenly showing a lot more interest in pet supplies. Because with that information, they can start targeting you for recurring subscriptions to dog food and puppy treats since your behavior indicates that you are a new pet owner. Nothing about your identity told them that. By understanding your shopping journey, Amazon is able to place the things you are more likely to buy into your path at the right time and sell you more.
Behavior becomes even more important when it comes to major-life purchase journeys, or shopping processes that are usually less impulsive and more thoughtful and time-consuming. Auto and home shopping falls into this category. According to a recent Google study, car shoppers spend 16-17 weeks shopping predominantly online prior to selecting and buying a car.
That’s a lot of consideration, and auto marketers who have a view into behavioral data will have a distinct competitive advantage in the marketplace. Imagine knowing when and how frequently a shopper visited a certain category of websites, and how long they spent researching a particular vehicle. With this information, marketers will be able to have a more meaningful and fruitful engagement with shoppers and will be more likely to turn them into customers.