The Impact of Machine Learning on Mobile Marketing

Submitted By Rick Delgado March 21, 2014

The world of marketing is only growing more complex as a variety of platforms and technologies are giving customers more access to businesses and products than ever before. These new challenges are forcing many marketers to adopt some new technologies of their own as they seek to reach out more effectively to a wider audience. The key to these new strategies is that of machine learning, which is playing a pivotal role in this new revolution of marketing, particularly among mobile platforms.

To truly grasp the big change machine learning is making to mobile marketing, it’s important to understand the traditional way marketers determined an effective offer. It’s called A/B testing, and it works by presenting two different versions of an offer and seeing which one gets the most positive response from a group of customers. Once the preferred offer has been chosen, that message is sent to everyone.

It’s easy to see the drawbacks to this decades-old method. Only two possible offers are presented, and even once the best one is found, it is sent to people that might not respond favorably. A/B testing does not take into account all the many different factors involving an individual customer’s decision-making process. Those factors, however, make for a lot of data that can be collected and stored by businesses in today’s information age. Sorting through such an immense collection is beyond the realm of possibility for humans, but that’s where machine learning comes in.

Machine learning is an automated process, capable of recording feedback and behavior from customers. Through the collected data, machine learning can test all the different messages and offers and determine which one will be the most effective and relevant for an individual customer. Whereas a human cannot possibly test for each different variable at play, machine learning can determine the leading factors automatically and adjust the message accordingly. These factors can include a customer’s purchase history, location, age, financial situation, and education level. The message’s content can also be adjusted, allowing changes for its tone, placement, and even the time it is given. Often times it isn’t the highest value offer that attracts the customer, it’s the right offer. By matching the right offer to the right customer, better results should follow.

With mobile marketing expanding every year, this allows for an unprecedented level of access of customer information and collection of data. Through the faster processing times offered by flash storage, that data can be used by marketers to personalize the offers and messages. That same data collection and analysis is fine tuned over time, creating more and more effective messages. Ultimately, the more marketing data is being used, the better a marketing campaign will be. This in turn leads to shorter campaign cycle times.

The advantages machine learning brings for marketers are many. It allows them to get real-time data directly from customers and not be too reliant on inside or outside test groups. Machine learning also determines more effective messages and factors by eliminating any bias that a company or group may have. Since a computer is doing the calculations, all it has to work with is cold hard data. Machine learning also eliminates much of the guesswork involved in marketing campaigns, while giving marketers more freedom to be creative by focusing on the content of the message instead of how or when the message is delivered.

Machine learning isn’t just providing a major boost to marketers. Consumers can also see some notable advantages from these new targeted campaigns. Since businesses can better understand their customers, offers tend to be more personalized for the consumer, essentially giving them what they want, when they want. Customers are also more likely to stay with a company that engages with them on such a personal level, leading to greater satisfaction with each interaction.

This way of recording behaviors via mobile marketing is opening up a new range of possibilities for marketers. Machine learning in this manner is certainly getting results; mobile operators are already seeing a 10% or greater improvement in revenues and retention. As marketers become more familiar with the technology, consumers will see offers and campaigns directed more towards the individual and not a giant group of people.

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About this CMS Enthusiast

Rick Delgado

Rick Delgado

“I’ve been blessed to have a successful career and have recently taken a step back to pursue my passion of writing. I’ve started doing freelance writing and I love to write about Dell and how new technologies can help us and our planet.” – Rick DelGado
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