More and more small business owners are using artificial intelligence.
Marketing experts Ming-Hui Huang and Roland Last wrote an influential article titled “Artificial Intelligence in Services,” in which they argued that the intelligence required to perform service tasks requires , theorized that there are four types of intelligence: mechanical, analytical, intuitive, and empathetic. A key point related to this theory is that to perform more sophisticated service tasks, artificial intelligence applications need to be able to go beyond mere mechanical and analytical capabilities and develop capabilities that require intuition and empathy. There is a need for that type of intelligence to play a role. The role of allocating tasks between machines or AI technology and human labor. This theory makes a lot of sense because, as most people who have dealt with chatbots for customer service issues know, human intuition and empathy are more difficult to emulate in AI. I am.
It can be argued that Huang and Rust's theory can be applied to marketing operations other than customer service. For example, in the field of advertising, Amazon and Google have mastered superior targeting through effective mechanical and analytical intelligence, and AI has made significant contributions to the targeting of social media ads. However, more intuitive and empathetic applications could improve the way customers respond to ads by responding to the emotions they are experiencing and the intuitive patterns associated with their purchasing behavior. It may lead to different areas.
Only time will tell how advanced AI will be in the area of “emotion” and related functions, but there is little doubt that more AI applications will be used effectively in many companies, including small and medium-sized enterprises. There is no room for. According to the U.S. Chamber of Commerce, America's 33.5 million small businesses (defined as businesses with 500 or fewer employees) make up 99.9% of all businesses, 4% of employment, and 43.5% of GDP. Therefore, it is important to consider whether small businesses are effectively leveraging AI.
A study conducted by Constant Contact, a digital marketing and automation company specializing in small businesses, in collaboration with market research firm Ascend2, on the use of AI by small businesses makes clear that AI is no longer just for large enterprises. is shown.Results are reported in the company's report Current status of small and medium-sized enterprises report 91% of small businesses using AI indicate that it makes their business more successful. Additionally, the study found a strong correlation between small businesses using AI and their overall success.
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Russ Morton, chief product office at Constant Contact, says advances in technology have enabled small businesses to use AI effectively. “You can't talk about AI without recognizing the technological advances in natural language processing and large-scale language models late last year that started almost overnight, allowing two-way interaction with algorithms.” The way we use technology to process data and create content is changing dramatically. This has led to increased attention to AI as a whole, and it has become a focus for business leaders across all industries. We are more than halfway through 2023, and the paradigm shift is only accelerating. ”
The biggest benefits of using AI reported by small business owners using AI include using the technology to save time that can be used for other tasks and reducing manual errors. the ability to grow more quickly. Additionally, 28% of respondents using AI said they expected to save at least $5,000 over the next 12 months because of AI. Notably, while only 26% of small businesses say they have already invested in AI, a further 44% say they want to start using it right away, a number that indicates AI is ready for growth. This suggests that this is a field where The biggest hurdle for those interested in using AI but not currently using it is that only beginners understand the benefits, data security, perceived costs, and learning curve of AI technology. All these obstacles seem surmountable if the business is successful. You will receive appropriate guidance.
This study reveals that small business owners place a high value on saving time. Research also shows that AI is helping many people fulfill orders more efficiently, streamline bookkeeping, interact with customers, manage staff, and more. When asked what they would do with the extra hour saved by AI, 37% said they would use the time to plan next for their business, and 31% said they would fine-tune their overall strategy. 30% said they would make adjustments and 30% said they would improve the product. or service. Notably, only 22% say they take time for themselves, demonstrating the degree to which these individuals are motivated to run a successful business.
Another key finding of Constant Contact's research is that small business owners report that customer acquisition is their biggest challenge. In fact, 60% of small businesses say acquiring new customers is the biggest challenge currently facing their business, followed by marketing to audiences (39%) and converting leads into sales ( 35%). These challenges demonstrate how AI can help marketers.
Pointing to the potential of AI to help solve marketing challenges, Morton said:
“Most small businesses are just marketers by necessity and are busy running the show, so finding the time to create and manage marketing campaigns can feel overwhelming. That’s where AI and automation come in. Here comes Social media, content, and email campaign creation are the most common areas where we often see SMBs using these technologies.
Automation allows you to autopilot some of the most common marketing tasks, such as sending welcome emails, reminder texts, social media posts, and campaigns. This frees up valuable time to focus on all other aspects of running your business. With a little more sophistication, you can use automation to send personalized campaigns that are more likely to increase customer engagement and drive sales. But automation becomes even more powerful when combined with AI.
AI is smart enough to understand what each individual customer wants and recommends the best content, channel, and time to send a message based on customer behavior and preferences. For small business owners, this type of personalization and recommendation engine is invaluable. This allows you to send the right message to the right person at the right time, on the right channel. AI can also draft that message and send it automatically using tools like Constant Contact. “
As for Constant Contact's business model, the company has developed programs for subject line testing, spam filers, automatic welcome email triggers, and abandoned cart reminders. In response to advances in technology, the company expanded its use of these technologies this year to better meet the needs of its customers. “Think about the work it takes to create an email campaign. Sometimes our customers get stuck at the content creation stage. That’s why we create special content for small businesses and non-profits. We launched the first multichannel AI content generator built,” said Morton. Now our customers can create entire email templates in seconds, adding their own tone and voice, and can be customized for each customer. ”
Constant Contact has also created a new automation that leverages dozens of different inputs to help small businesses decide the best time and channel to send messages to customers. Both of these innovations can help alleviate some of the biggest marketing hurdles for small businesses and help them understand their message end-to-end.
In terms of whether companies' concerns about data security, cost and learning curves are justified, Morton said these issues are not new and are largely due to lack of experience with these technologies, especially when many suggests that this is a first for small and medium-sized enterprises. In fact, the survey found that the more time small businesses spend on AI and automation and the more sophisticated their marketing strategies become, the more they begin to see the benefits and want to extend this technology to other areas of their business. I understand.
It's clear that more small and medium-sized businesses will be able to leverage artificial intelligence for multiple purposes, and the potential for more efficient marketing is one of the biggest opportunities.
