Understand Customer Behaviour using Machine learning in 2023
If only there were a magic crystal ball that would offer businesses a sneak peek into the customer journey and grant insights into what goes into improving it! Well, if that is what you seek, machine learning is exactly the answer to this prayer! Here’s a look at real-world cases where businesses can use machine learning to understand customer behavior – in 2023 and beyond!
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Areas Where Machine Learning Can Help Understand Customer Behavior
Artificial intelligence has the potential to increase business profitability by an average of 38% by 2035. Such growth applies to businesses across all sectors. On that note, we have compiled some practical use cases of artificial intelligence and its subsets – machine learning, deep learning, etc. to decrypt customer behavior:
Machine Learning grants businesses a unique insight into every customer’s profile. By analyzing large volumes of data across different spheres – demographical, geographical, cultural, psychographic, etc., ML acts as a window to the customer psyche. Performing data analytics on such profiles can help identify patterns that predict purchase intent, cart abandonment, churn, etc. Such data-driven insights allow businesses to capitalize on ripe opportunities to win sales and even maximize profits through upselling and cross-selling!
As seen already, deep learning produces deep insights into every customer. As such, marketers can recalibrate their strategies to cater to specific customer requirements and curate bespoke customer journeys than clubbing several individuals together.
For instance, marketers can use promos, discounts, and deals to capture the interest of price-sensitive prospects. Similarly, they can handpick the right channels to deploy the right marketing strategies. In short, they would be appealing to prospects on familiar grounds using strategies that they value. What else can be a better recipe for success?
Content is an essential bridge between brands and consumers that features across all marketing cycles and sales funnels. As such, the content needs to align with customer requirements and preferences to maximize engagement and drive sales.
With artificial intelligence, it is not only possible to formulate laser-sharp and personalized strategies but also harness dynamic web elements to modify webpage layout and content. Testing out variations of your website and noting responses will help you create dedicated websites and storefronts for every user.
Custom Customer Journey
Everything discussed so far are different components of the customer journey – be it personalization, content, marketing strategy, etc. And while artificial intelligence, machine learning, and deep learning enhance individual segments, they also streamline the customer journey as a whole.
Making the entire process data-driven enables businesses to add value at every touchpoint. At the same time, it is possible to automate portions of the customer journey and make it as interactive as possible with overwhelming available resources.
Customer Lifetime Prediction
Machine learning engines can analyze customer sentiments during every interaction and even crawl across third-party platforms like social media and perform analytics to understand the same. While positive customer experiences are a good sign, the negative ones are indicators of impending customer churn.
At this stage, businesses can carry out timely interventions to win back the customer and extend their customer lifetime value. Artificial intelligence tools can also carry out data analytics to identify accounts that appear promising versus ones that are bound to leave no matter what.
Machine learning gets your business on the same page as the customer. Data-driven insights into their experiences, expectations, and emotions will help businesses in multivariate ways. Such knowledge can increase sales, average cart value, customer loyalty, and lifetime value – all of which will drive business growth, sustainability, and profitability. Locobuzz is a powerful customer experience platform powered by artificial intelligence, machine learning, and deep learning that you can leverage to benefit from.