We’ve seen no shortage of impressive technological developments over the last few decades. However, few are more exciting or have more potential to transform life as we know it than machine learning (ML).
Machine learning is a branch of artificial intelligence that describes applications that learn and improve from experience without being explicitly programmed, and machine learning now accounts for the biggest share of AI funding.
Machines that get smarter over time might seem like science fiction, but it’s a reality. And in today’s fast-paced and fiercely competitive world, ML can be the difference between stagnating or racing ahead of competitors.
At FitPeo, we leverage machine learning throughout several areas of our business. Based on our experience, let’s look at how entrepreneurs can use machine learning to help their businesses as well.
1. Leveraging Consumer Data For Better Insights
Companies today collect vast amounts of customer data. This includes basic data like email addresses, IP addresses, age, gender and so on. But it also includes interaction data like website visits, user flow, engagement (post likes, shares, replies), click-through rate and conversions, as well as behavioral data like subscription details, previous purchases, devices and average order value.
Machine learning applications can analyze this data to find insights you can leverage for more targeted and compelling marketing campaigns and better product ideas. For example, you might find an entirely new group of consumers who use your product in a way you hadn’t anticipated. Armed with this information, you can begin to target this new customer segment.
2. AI-Driven Marketing
Marketing experts recommend that small businesses should spend 7%-8% of their gross revenue on marketing. That’s a significant chunk, and you want to ensure you spend that money wisely. Moreover, you don’t want your marketing obligations to take you away from other urgent or important tasks.
Automated marketing tools can do much of the heavy lifting by selecting and analyzing keywords, searching for suitable content topics, automatically publishing posts on social networks and sending regular emails. Some artificial intelligence tools can also create engaging ads for each individual user, so your content has a better chance of resonating and reaching the right people at the right time.
3. Enhanced Decision Making For Stronger Business Plans
Developing an effective business plan requires knowledge of current market trends and the customer segments you’re targeting as well as an in-depth understanding of the issues you want to solve with your product or service. Machine learning can speed up and simplify this research by analyzing the market and consumer data and providing the best recommendations for you to focus on.
4. Sentiment Analysis
Sentiment analysis is a powerful and increasingly popular marketing tool that enables companies to understand customer emotions. By understanding how your customers feel about your brand or product, you can enhance the customer experience and improve customer service.
Machine learning tools can analyze thousands of data points across your social media channels, reviews and content replies to gauge customers’ emotions. This allows you to respond quickly to customer needs, intents, and preferences and gain an edge over your competitors.
5. Automating Routine Tasks
Repetitive, rules-based tasks can eat up a considerable amount of time when done manually. These tasks include invoice creation and processing, backing up data and responding to simple customer queries. Luckily, most of this tedious work can be handled by smart bots today. And the intelligent ML-driven bots get better over time, finding new ways to improve efficiencies and decrease your workload.
6. Customer Service Chatbots
Gone are the days when chatbots were clunky, unresponsive and, quite honestly, not smart or helpful. Today, conversational AI chatbots can mimic human interactions to provide intelligent, helpful and natural-sounding responses. These conversational AI chatbots leverage machine learning and natural language processing (NLP) to facilitate fast and personalized customer service anytime and anywhere without the need to program responses.
7. Cybersecurity
We live in a world where one cyberattack happens every 39 seconds, and according to Cybersecurity Ventures, the annual damage from cybercrime is expected to reach $10.5 trillion by 2025. Many smaller businesses mistakenly think they’re too small to be on hackers’ radars, but this is false. Cybercriminals can make just as much money targeting many smaller businesses as one big business, and smaller companies tend to have weaker security defenses.
ML-driven cybersecurity apps can analyze patterns and find anomalies so you can catch cyberattacks before they become a problem. They can also automatically scan for updates and patches and install them to safeguard your systems from vulnerabilities.
8. Sales Forecasting
Sales forecasting is the process of estimating your sales revenue for a specific time period. It’s an essential activity for any entrepreneur because it helps you make informed decisions about everything from marketing efforts, staffing and inventory to new product lines.
The key to good sales forecasting is accuracy. Machine learning tools leverage historical and real-time data to make highly accurate predictions about consumer behavior. These tools can predict which days, weeks and months in the year will result in the highest sales. They can also analyze holiday effects (special days) for both positive and negative impacts.
9. Price Optimization
Determining how to price your products or services is one of the most important decisions entrepreneurs make, and it can be challenging. Entrepreneurs must be conscious of price sensitivity (how a price change would influence the customer’s decision).
Traditionally, businesses would have to rely on questionnaires to understand people’s willingness to pay in different ranges. Today, data-driven models can deliver dynamic smart pricing. These machine-learning algorithms ensure you’re always pricing your products appropriately for your target audience and market.
10. Wrapping Up
Machine learning tools are becoming more advanced and more affordable every year. Today, a simple Google search can find ML-powered tools for almost any business use case. However, it’s always a good idea to shop around and see which tools best meet your needs today and in the future.
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Article resource: https://www.forbes.com/sites/forbestechcouncil/2023/01/19/9-ways-entrepreneurs-can-leverage-machine-learning-to-elevate-their-business/?sh=634b98352ea1
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