Data Management

6 reasons why a clean data foundation is crucial for AI marketing

Looking to integrate AI into your marketing strategy? The key lies in having top-notch data. Remember, AI’s effectiveness hinges on the quality of its input. If your data is chaotic, flawed, or filled with gaps, your AI endeavors could easily fall into the 85% of projects that don’t make the cut, according to Gartner.1 As they point out in the study, most AI initiatives stumble due to having a faulty data foundation.

Building an AI marketing strategy on clean data is crucial for several reasons:

1. Accurate insights

Clean data ensures that the insights generated by AI algorithms are accurate and reliable. When AI models are trained on clean, high-quality data, they can make more precise predictions and recommendations, leading to better decision-making in marketing campaigns.

2. Effective personalization

Personalization is a key driver of successful marketing campaigns. Clean data enables AI systems to segment audiences effectively and tailor content and messaging to individual preferences and behaviors. This leads to more relevant and engaging experiences for customers, increasing the likelihood of conversion and retention.

3. Improved ROI

Marketing campaigns built on clean data are more likely to deliver a higher return on investment (ROI). By targeting the right audience with the right message at the right time, companies can optimize their marketing spend and maximize the impact of their campaigns, leading to increased revenue and profitability.

4. Enhanced customer experience

Clean data enables AI-powered marketing systems to deliver seamless and consistent experiences across various touchpoints and channels. By understanding customer preferences and behaviors accurately, companies can anticipate their needs and deliver personalized interactions that resonate with customers, fostering loyalty and satisfaction.

5. Compliance and trust

With increasing regulations around data privacy and protection, using clean data ensures compliance with legal requirements such as GDPR and CCPA. By safeguarding customer data and respecting their privacy preferences, companies can build trust and credibility with their audience, enhancing their brand reputation.

6. Future-proofing

Clean data lays the foundation for scalable and sustainable AI marketing initiatives. By investing in data quality and integrity, companies can future-proof their marketing strategies and adapt to evolving market trends and consumer preferences with agility and confidence.

Good data in the wild

These companies are leveraging their clean data foundation to harness the power of AI and find success.

Netflix

Netflix has been a pioneer in using AI algorithms to personalize content recommendations for its users. Its recommendation system analyzes user behavior, viewing history, and preferences to suggest relevant movies and TV shows, thereby enhancing user engagement and retention.

   Netflix personalized content recommendations

 

Amazon

Amazon utilizes AI extensively for product recommendations, search optimization, and personalized marketing communications. Its AI-driven recommendation engine suggests products based on user browsing and purchase history, contributing significantly to its sales and customer satisfaction.

Amazon AI-driven product recommendations

 

Spotify

Spotify employs AI algorithms to curate personalized playlists and recommendations for its users. By analyzing listening habits, music preferences, and user-generated playlists, Spotify delivers tailored content that resonates with individual tastes, driving user engagement and loyalty.

Spotify uses AI to personalize playlists

 

Adobe

Adobe’s Sensei AI platform powers various marketing tools and solutions that enable marketers to optimize content creation, delivery, and customer experiences. From predictive analytics to content personalization, Adobe Sensei empowers marketers to make data-driven decisions and deliver impactful campaigns. 

Adobe Sensei AI platform

 

Unilever

Unilever leverages AI and machine learning to optimize its digital marketing efforts across multiple brands and channels. By analyzing consumer data and market trends, Unilever tailors its advertising messages and targeting strategies to maximize relevance and effectiveness, driving brand awareness and sales.

Achieving AI-ready data

As marketers, we know that a clean foundation is not easy. It must be clean, in a consistent format and accessible. Building an AI marketing strategy on clean data is essential for driving growth, fostering customer relationships, and maintaining a competitive edge. Having a good partner can help. Data Axle’s Audience360 ensures high quality data is clean and ready. It is a catalog of data management components that can be assembled uniquely based on client requirements and includes data, data hygiene, enhancement, ID resolution, golden record and data repository.

Have questions? Let’s talk about them.

 


1 https://www.gartner.com/en/newsroom/press-releases/2018-02-13-gartner-says-nearly-half-of-cios-are-planning-to-deploy-artificial-intelligence

Natasia Langfelder
Content Marketing Manager

As Content Marketing Manager, Natasia is responsible for helping strategize, produce and execute Data Axle's content. With a passion for writing and an enthusiasm for data management and technology, Natasia creates content that is designed to deliver nuggets of wisdom to help brands and individuals elevate their data governance policies. A native New Yorker, when Natasia is not at work she can be found enjoying New York’s food scene, at one of NYC’s many museums, or at one of the city’s many parks with her two teacup yorkies.