The AI bandwagon keeps on going and it’s not likely to stop anytime soon.

Especially in marketing & e-commerce I see huge potential to gain an unfair advantage.

One of the most powerful ways to use AI is to understand and target your customers' psychological needs.

AI can help you identify customer pain points and desires, create personalized marketing campaigns, and track the results of your efforts.

In today’s issue we’ll dive into the benefits and possibilities of AI x Consumer Psychology.

Benefits of using AI to understand and target customer needs

The benefits of leveraging AI in e-commerce are endless, but in my opinion these three are the most valuable:

• Increased sales and conversions: When you understand your customers, you can create marketing campaigns that targets their pain points. Leading to more sales.

• Improved customer loyalty: When you deliver personalized marketing experiences, customers are more likely to feel valued and appreciated. And we all know that a loyal customers brings in more cash that a one-time-buyer.

• Reduced marketing costs: By using AI to target your marketing campaigns to the right people, you spend less on marketing and you’ll improve ROI (or ROAS). Besides that, AI skyrockets your time-to-market.

How to understand and target customers with AI

There are many ways to use AI to understand and target customer needs. Let’s take a look at the most common:

• Tracking customer behavior: AI can be used to track customer behavior on your website and social media. This data can be analyzed to identify trends and patterns in customer behavior. For example, you can use AI to see which products customers are most interested in, which pages they visit most often, and what keywords they are using to find your website.

• Understanding customer needs and desires: AI can be used to analyze customer data to identify their needs and desires. For example, you can use AI to analyze customer reviews, social media posts, and customer surveys to identify the biggest pain points and desires of your customers.

• Creating customer personas: AI can be used to create customer personas, which are fictional representations of your ideal customers. Customer personas can help you to better understand your customers' needs, wants, and motivations.

• Creating targeted marketing campaigns: AI can be used to segment your customer base and create targeted marketing campaigns for each segment. For example, you can use AI to target different marketing messages to customers who are interested in different products or who are at different stages in the buying funnel.

• Cross-Selling: All the data you gather with on your website is a goldmine for AI. Use AI to come up with personalized recommendations to boost AOV.

Case studies

Well, that all sounds nice. But are there any examples in real life?

Sure is.

And you are probably a part of it.

• Netflix: Netflix uses AI to recommend movies and TV shows. Ever seen the same home screen on Netflix for two days in a row?

• Amazon: Amazon uses AI to personalize its product recommendations. Amazon uses it to boost AOV by up to 20%.

• Spotify: Spotify uses AI to create personalized playlists for its users. Go to “search“ and you’ll find a “Made for you“ section. All AI-fueled.

TL;DR

AI is a powerful tool that can be used to understand and target your customers' psychological needs. By using AI, you can create more effective marketing campaigns that will resonate with your customers and lead to increased sales and conversions.

How to get started with using AI for marketing

If you're not sure where to start with using AI for marketing, there are a few things you can do:

• Identify your goals: What do you want to achieve with AI marketing? Do you want to increase sales, improve customer loyalty, or reduce marketing costs? Once you know your goals, you can start to identify the AI tools and resources that will help you achieve them.

• Do your research: There are many different AI tools and resources available. It's important to do your research and find the tools and resources that are right for your business and your budget.

• Start small: Don't try to do too much too soon. Start with a small project and see how it goes. Once you have a better understanding of how AI marketing works, you can start to implement it on a larger scale.

If you need help getting started with AI marketing, I’m happy to chat.

Have a great Sunday!
Erik

Whenever you’re ready, there are three ways I can help you.

1. Resource Library. Useful resources for every marketeer. Includes an E-Commerce Audit Report, Social Proof Playbook & Midjourney Masterclass.

2. Book a 1:1 Call. A No Bullshit 20 min Ask Me Anything call. If you’re facing challenges in online business, I’m happy to share my decade of experience.

3. Supercharge your Business with AI. Tailored consulting for marketing & operations to supercharge performance with AI.

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