Using AI to attract customers on social media

DNHN - How to use artificial intelligence (AI) in social media marketing to increase sales and customer satisfaction? Senior lecturers in Digital Marketing from RMIT University share some insights.

Benefits of integrating AI on social media

The AI market in Vietnam is estimated to grow by 28.6% annually, with an expected value reaching 3.4 billion USD by 2030. The government has implemented a national AI strategy to position Vietnam as one of the leading countries in this field, especially in Southeast Asia.

According to Dr. Alrence Halibas, a senior lecturer at RMIT University, AI can improve user journeys and decisions, increasing the trend of using digital platforms to search for and purchase products.

She said: "One of the strengths of AI is its ability to provide personalized recommendations. AI uses content-based filters, such as suggesting products similar to those users have ‘liked’ in the past, and collaborative filtering, recommending products based on the preferences of similar users."

These strategies increase the likelihood of purchases by ensuring that the content and products displayed on users' pages align with their interests and needs.

Another example is chatbots and virtual assistants, using natural language processing (NLP) to interact with customers in real time on social media platforms.

She explained: “Chatbots answer questions, provide product information, and guide customers through the purchase process.”

Other advanced AI-based marketing techniques include:

- Predictive analytics: Analyzing historical social media data to predict customer needs and provide timely and appropriate products.

- Sentiment analysis: Reviewing social media posts and customer reviews to gauge their feelings towards products and brands, allowing marketing teams to adjust strategies accordingly.

- Dynamic pricing: Monitoring real-time prices based on demand, competition, and other market factors to ensure optimal pricing for maximizing sales and profits. Senior lecturer Umair Akram shared some successful AI deployment campaigns in Vietnam.

The VietJet campaign by PMAX in 2023 used a Customer Data Platform (CDP) to analyze over 150 million user records. This campaign created over 300 customer segments and deployed personalized advertising across more than 25 channels. VietJet achieved sales six times higher than the same period in 2022, recorded 1.7 million flight bookings, and increased monthly active users on the app by 75%.

The strategic use of AI for personalized advertising and real-time customer insights demonstrated the potential of this technology in transforming social media marketing.

Samsung’s campaign with the Galaxy Z Flip4 and Fold4 by Cheil Vietnam used an AI-driven CDP to analyze customer data and create over 300 segments. This enabled personalized advertising across multiple channels, including Instagram and TikTok, targeting Gen Z consumers.

Through the "Galaxy ME" creative platform and collaboration with fashion designers, this campaign achieved 96.4% buzz market share, 97% brand awareness, and significantly increased purchase intent and sales. The deployment of AI not only enhanced engagement but also reinforced Samsung’s leading position in the foldable smartphone market.

The future of AI in social media marketing

Dr. Akram emphasized the potential of AI-based systems in identifying products that attract customer engagement on social media. By analyzing customer interactions, businesses can determine which product attributes are most impactful. They can then deliver marketing messages to the right customer segments, increasing engagement.

He said: “Businesses need to consider the behavioral and social impacts of AI technology on customer behavior and experiences. This allows them to develop strategies for customer engagement and innovative user experiences, promoting sustainable growth and providing a competitive advantage.”

Dr. Halibas shared that emotionally engaged customers are more likely to experience higher satisfaction and have higher purchase intent.

To foster this, she recommended businesses support customers before and after purchase, proactively communicate, and provide personalized interactions.

RMIT experts believe AI technology will continue to offer detailed personalization, accurate personalized content, and advertising based on user profiles and real-time behavior.

Dr. Halibas said advancements in NLP and machine learning will make chatbots and virtual assistants more sophisticated, providing seamless and human-like customer interactions.

According to her, continuous advancements in augmented reality (AR) and AI will create immersive shopping experiences on social media, allowing users to virtually try the products before buying.

Ngoc Hoang (RMIT)