The Psychology Behind AI-Driven Marketing: How AI Understands Consumer Behavior

AI-driven marketing pulls out hidden data gems on the surface. Advertisers’ main task nowadays is to rapidly adapt to a new approach of analyzing their audience’s behavior and work with the data effectively to monetize it at the end of the day. 

AI has been transforming marketing (as well as every industry it touches) in a way we could only dream of before: now we can understand clients on a deeper level thanks to sentiment tracking, use personalized marketing through customized communication, and predict the behavior of specific audience’s portrait groups based on consumer psychology. AI marketing tools like Entyx significantly help to improve the interaction strategy because they know deep secrets of users’ personalities like phycologists: preferences, habits, schedules, ways of communication, degrees, motivations, triggers, and other secrets. 

In this article, we will discuss the psychology of customers and explore how Entyx assists advertisers in hitting the right buttons in their audiences' hearts. 

What Is AI-Driven Consumer Psychology?

That is the usage of AI to analyze what’s behind the consumer decision-making processes. AI analyzes big datasets to outline the key aspects of the consumers’ behavior and finds what truly motivates the audience. It involves understanding and predicting consumer behaviors, investigating their main triggers, and what emotions influence their decisions. This powerful knowledge and deep connection with the audience can make any business owner a billionaire simply because it’s a well-known fact that marketing is founded on human psychology.

Those advertisers who investigate their target audience’s behaviors, preferences, and habits from various sources, such as their purchase histories, activity on social media, and interactions through AI-driven marketing tools, always get the best part of the cake. AI tools demonstrate a whole vibrant palette of the audience’s inner world that greatly helps businesses to create highly personalized advertisements, relevant marketing messages, and effective marketing strategies that press straight on the pain points of the customers. 

How To Use The Data To Develop Effective Marketing Strategies 

Understanding consumer behavior is key to developing successful marketing strategies. The best way to do it is through AI-powered predictive analytics, which can identify patterns in consumer behavior and predict future actions. For AI algorithms it is a basic task to analyze a consumer's browsing and purchasing history to predict what products they are likely to buy in the future. Three steps to succeed in developing effective marketing strategies: 

Step 1. Start from gathering and analyzing consumer data using AI-powered tools like predictive analytics and sentiment analysis. 

Step 2. Then, use that data to identify consumer segments and tailor marketing campaigns to their specific needs and preferences. 

Step 3. Continually monitor consumer behavior using AI-powered tools and adjust marketing strategies as needed. 

This can help businesses stay ahead of changing consumer trends and preferences and ensure that their marketing campaigns remain effective and always drive results. 

Personalization: The Key to Connecting with Consumers

How many times do we see a website that is just using stock images that are not related to it? For example, they might use an irrelevant image of a younger model who is not their target audience. 

According to a survey, 91% of consumers are more likely to buy from the brands that they recognize, remember, and provide clients with relevant offers and recommendations. 

Emotions are personal to humans, and that personal connection is something that savvy brands are leveraging via contextual marketing. In contrast, non-personalization is like one size fits all. A preference for personalized experiences helps customers to reduce their overload consumption of information. 

No one does personalization quite like streaming giant Netflix, and all because it is entirely data-driven. It is an approach that is paying off as Netflix is now the top choice for video streaming in all the global regions. It has become a fact that no two Netflix home pages look the same because of the tracking with algorithms. 80% of what people play on Netflix comes from the recommendation algorithm, so it's a really big lever for Netflix. It's a really important part of what we do. Netflix now serves hundreds of countries, lots of different cultures, and lots of different languages. 

To give you another example, Amazon uses machine learning and artificial intelligence to look for insights and to make personal product recommendations. This way, their customers have a better customer experience. And that's translating into more items in the cart and higher sales. During a six-week A-B split test, the average order value increased by just over $50 per order and had an increase in sales of 40.5% for customers who saw the Personalized recommendations.

AI helps advertisers create a personalized experience for their clients. Recommendations based on previous purchases, personalized marketing email campaigns, and targeted ads - all enormously increase consumer engagement.

It’s all possible thanks to AI personalized marketing tools that track, analyze, and share insights in real time. Entyx’s priority is to enable advertisers to be on the same page with their clients. 

Entyx Sentiment Tracking Makes AI Marketing Simple and Effective

AI-powered sentiment analysis can analyze social media and other online platforms to gauge consumer sentiment about a particular product or brand. This information can be used to identify areas of strength and weakness in a brand's reputation and inform marketing strategies to improve consumer perception. 

To be more specific, Entyx AI Sentiment Tracking tool analyses the tone and sentiment of influencers when mentioning your brand or specific keywords. This product identifies in real-time whether the sentiment is positive, negative, or neutral, helping you understand how influencers represent your brand and its impact on audience perception.

This way, brands can immediately react to negative feedback and make it up, working on improving the customer's experience. Also, having audience insights enables advertisers to create better quality content that awakens only the positive emotions of their target audience. 

When advertisers know the reaction of a specific audience group, they can better customize campaigns following their needs and preferences. 

Entyx AI marketing solutions provide immediate access to real-time analytics, engagement levels, brand mentions, ROI, and other metrics necessary to evaluate the success of any campaign. Using our platform, brands not only save time but optimize their budgets by focusing only on relevant and profitable approaches. 

To know more about it, please click here to read our blog post dedicated to the Entyx Sentiment Tracking product.

Final Word

Social prediction is relatively new, so we've all been using social listening for quite a while and it's been very helpful for us to understand what's the context of our world outside of just the sales data. What social prediction is, is now we have enough data, we're able to sort of forecast that forward. So instead of just looking at what's happening now and historically, we know enough about the patterns in social data that we can actually predict the future. And that's really what social prediction can do, is say look, this is where everyone is going, this is what people are going to be worried about, thinking about, excited about. And these are where the products you can create to make sure you capitalize on those new things. 

Machine learning and AI are completely changing the way we look at everything. If you look at it from how quickly our industry is moving, in reality, it's a tool. So in the same way as every new tool comes out, we get a bit over-excited. So our advice for marketers, technologists, and anyone trying to navigate this new future of artificial intelligence, is really just to spend a bit of time to understand what it's trying to achieve and what levers you can pull to your advantage because we're all trying to do the same thing. It's about learning these tools and learning what they're capable of and then bringing them into the creative process.

AI changes the approach to represent the products and solutions as it exposes psychological levers of better interaction with the target audience. Advertisers better understand their audiences and serve what the clients truly need. Such tools like Sentiment tracking, personalization, and data analytics are the key to success. Entyx offers a whole set of AI-driven marketing tools that are simple and effective, enabling businesses to stay ahead of their competitors. 

Try Entyx once and become a raving fan. Waiting for you in our progressive marketing community. See you in the next articles!