⚡ Get All Content for 20% Off ⚡

Deep Learning and 'Hyper-Personalization' are the Future of Marketing Automation Taking a look at not only interactions, but intent.

By Reshu Rathi

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Hero Images | Getty Images

Marketing automation has come a long way -- from merely being a tool for marketers to automate repetitive tasks to becoming a fortune ball to understand the high demanding customers of today. The technology advancements in this field have empowered marketers to use customer data to unearth valuable insights and create highly personalized marketing communication, sent at the right time and in the right channel. No wonder it's slated to become a $5.5 billion industry by 2019.

Related: This Is How You Discern the Person in All That Customer Personalization Data

Here are three examples of how deep learning in marketing automation is making marketers' life easier.

1. Identifying deeper patterns in data for hyper-personalization.

"Personalization" is a widely used term, but it has started to wear down its significance. Don't get me wrong; I am not suggesting that you should stop personalizing your online shopping experience and marketing messages. What I am proposing is focusing on hyper-personalization.

Marketing automation with machine learning (ML) allows you to personalize customer experience based on their history of interactions, like purchasing habits, behavioral traits and digital preferences. But it does not take the intent of the customer into consideration.

Deep learning technology, on the other hand, will not just rely on the interaction history of the customer but will consider their intent. For example, a customer comes to your site and buys a dress. During their second visit, the same customer starts checking out footwear. In this scenario, the equation will not rely on transactional and interaction data to personalize the experience, but will consider the intent.

Deep learning is much better than other ML and AI techniques in understanding what customers want as it has the potential to find patterns inside of patterns. According to Michio Kaku, AI is only as smart as a "lobotomized, mentally challenged cockroach." Deep learning techniques identify and analyze patterns so it can predict real-life outcomes. But the technology is still in its infancy, and what it's capable of is yet to be seen.

Related: 3 Competitive Advantages of Deep Learning for Your Company

2. Use deep learning to drive customer retention.

Every business knows that retaining customers costs less than acquiring them. And, customer retention can increase company profit by manifolds. According to Bain and Co., a 5 percent increase in customer retention can increase a company's profitability by 75 percent. When it comes to improving customer retention, deep leaning can help. How? By giving customers what they need, when they need it. According to a Trendspotter report, 82 percent of people are likely to shop at a retailer that provides them with personalized offers.

Marketing automation powered with AI does the same thing by ensuring the right message gets to the right person at just the right time. But deep learning can take it a notch higher. It takes into account customer taste, personal preferences, spending patterns and even micro preferences combined with external factors, like weather, to send highly customized and more relevant suggestions to their customers.

Related: Think Twice About a Company When You Keep Hearing These 4 AI Buzzwords

3. Customer behavior is a science: Big data analytics and deep learning.

Prescriptive analytics is another technique that uses deep learning from customer data to predict future trends and behavior patterns. Marketing automation platforms have become powerful enough to anticipate predictions -- like when a customer will make his next purchase, what's the LTV of a customer, who are the most valuable customers, what time is a customer is most likely to buy, and what's the right discount to offer to a customer segment.

Deep learning has already been used in the advertising industry to make activities up to 50 percent more efficient. That's why many marketers are super excited about it. But, deep learning is not as easy as it sounds. Still as a marketer, it's important to know how it works and how you can use it to your advantage. Marketers who strive to be relevant to their consumer need to pay attention to this technology.

Reshu Rathi

Marketing Manager

Reshu Rathi is an online marketing and conversion rate enthusiast. She has been in the internet marketing industry for nearly ten years, specializing in content and product marketing, lead generation and engagement strategy. She provides thought leadership for a variety of global publications.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.