BY ROBIN GHOSH,
ECONOMIST AND BUSINESS MENTOR
KOLKATA, 15 FEBRUARY 2024:
If you are in business, and in particular in small business or you are a student of business management – it is time to understand how AI can help you to acquire customers.
Customer acquisition is the most important activity for any business unit. And customer acquisition is riddled with a host of barricades .Multidimensional challenges. If you are a small business owner, the challenges are insurmountable Himalayan challenges.
Having been mentoring MSME units over more than thirty years, I have figured out the category of challenges. Briefly, the problem areas are:
1. High Advertising Expense. Cost of advertising in print, television and radio is very steep. Positive result is not guaranteed.
2. Most of the time, marketing campaigns, and marketing events bring sub- optimal results, limited prospects and low conversions.
3. Over pouring of data due to digital platforms leading to confusion. Not knowing advance analytics MSME units unable to design actionable marketing strategy.
4. Lack of manpower required to execute diversified and multilevel customers acquisition strategies.
The next question that arises in our mind is: how do we know that data- driven customer acquisition is more effective?
Studies conducted by consulting companies reveal that data- driven advertising is 23 times more effective to attract customers and 6 times more powerful to retain them.
So, we have to transform our advertising bucket to AI ignited targeted advertising. To do this, we have to utilize real time data and machine learning.
This will enable us to precisely identify audience segments and a batch of high potential customers.
Use of AI tools to acquire customers has many advantages. Look at the advantages:
Tasks, Lead Generation, E-mail Marketing, Customer follow up can be seamlessly automated. This will enable us to have a cohesive and efficient customer acquisition package.
Apart from this, AI Power system will also help to create personalized communication packages and enhance customer’s experience. It will also be possible to predict customer’s behavior in advance. All in all AI driven models are a very powerful tool to ensure in optimizing marketing and sales strategies.
Once MSME Units adopt automated marketing processes, it will lead to higher conversion rate compared to non-automated marketing initiatives. MSME must realize that the choice is limited. It is an essential tool to develop a sustainable business model. MSME units have to adopt new edge tools. There is no option.
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