Table Of ContentTrimSize:6inx9in (cid:2) Sterne ffirs.tex V1-07/19/2017 7:25am Pagei
Artificial Intelligence
for Marketing
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Wiley & SAS Business
Series
TheWiley&SASBusinessSeriespresentsbooksthathelpsenior-level
managerswiththeircriticalmanagementdecisions.
TitlesintheWiley&SASBusinessSeriesinclude:
AnalyticsinaBigDataWorld:TheEssentialGuidetoDataScienceandIts
ApplicationsbyBartBaesens
APracticalGuidetoAnalyticsforGovernments:UsingBigDataforGood
byMarieLowman
Bank Fraud: Using Technology to Combat Losses by Revathi
Subramanian
BigDataAnalytics:TurningBigDataintoBigMoneybyFrankOhlhorst
Big Data, Big Innovation: Enabling Competitive Differentiation through
BusinessAnalyticsbyEvanStubbs
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BusinessAnalyticsforCustomerIntelligencebyGertLaursen
BusinessIntelligenceApplied:ImplementinganEffectiveInformationand
CommunicationsTechnologyInfrastructurebyMichaelGendron
Business Intelligence and the Cloud: Strategic Implementation Guide by
MichaelS.Gendron
Business Transformation: A Roadmap for Maximizing Organizational
InsightsbyAimanZeid
ConnectingOrganizationalSilos:TakingKnowledgeFlowManagementto
theNextLevelwithSocialMediabyFrankLeistner
Data-Driven Healthcare: How Analytics and BI Are Transforming the
IndustrybyLauraMadsen
Delivering Business Analytics: Practical Guidelines for Best Practice by
EvanStubbs
Demand-DrivenForecasting:AStructuredApproachtoForecasting,Second
EditionbyCharlesChase
Demand-Driven Inventory Optimization and Replenishment: Creating a
MoreEfficientSupplyChainbyRobertA.Davis
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Developing Human Capital: Using Analytics to Plan and Optimize Your
Learning and Development Investments by Gene Pease, Barbara
Beresford,andLewWalker
The Executive’s Guide to Enterprise Social Media Strategy: How Social
NetworksAreRadicallyTransformingYourBusiness by David Thomas
andMikeBarlow
EconomicandBusinessForecasting:AnalyzingandInterpretingEconomet-
ric Results by John Silvia, Azhar Iqbal, Kaylyn Swankoski, Sarah
Watt,andSamBullard
Economic Modeling in the Post–Great Recession Era: Incomplete Data,
Imperfect Markets by John Silvia, Azhar Iqbal, and Sarah Watt
House
ForeignCurrencyFinancialReportingfromEurostoYentoYuan:AGuide
toFundamentalConceptsandPracticalApplicationsbyRobertRowan
HarnessOilandGasBigDatawithAnalytics:OptimizeExplorationand
ProductionwithData-DrivenModelsbyKeithHoldaway
(cid:2) HealthAnalytics:GainingtheInsightstoTransformHealthCarebyJason (cid:2)
Burke
Heuristics in Analytics: A Practical Perspective of What Influences Our
AnalyticalWorldbyCarlosAndreReisPinheiroandFionaMcNeill
HumanCapitalAnalytics:HowtoHarnessthePotentialofYourOrgani-
zation’sGreatestAssetbyGenePease,BoyceByerly,andJacFitz-enz
Implement,ImproveandExpandYourStatewideLongitudinalDataSys-
tem:CreatingaCultureofDatainEducationbyJamieMcQuigganand
ArmisteadSapp
Intelligent Credit Scoring: Building and Implementing Better Credit Risk
Scorecards,SecondEditionbyNaeemSiddiqi
KillerAnalytics:Top20MetricsMissingfromYourBalanceSheetbyMark
Brown
ArtificialIntelligenceforMarketing:PracticalApplicationsbyJimSterne
On-Camera Coach: Tools and Techniques for Business Professionals in a
Video-DrivenWorldbyKarinReed
Predictive Analytics for Human Resources by Jac Fitz-enz and John
MattoxII
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Predictive Business Analytics: Forward-Looking Capabilities to Improve
BusinessPerformancebyLawrenceMaiselandGaryCokins
RetailAnalytics:TheSecretWeaponbyEmmettCox
Social Network Analysis in Telecommunications by Carlos Andre Reis
Pinheiro
StatisticalThinking:ImprovingBusinessPerformance,SecondEdition by
RogerW.HoerlandRonaldD.Snee
StrategiesinBiomedicalDataScience:DrivingForceforInnovationbyJay
Etchings
Style&Statistic:TheArtofRetailAnalyticsbyBrittanyBullard
Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data
StreamswithAdvancedAnalyticsbyBillFranks
TooBigtoIgnore:TheBusinessCaseforBigDatabyPhilSimon
TheAnalyticHospitalityExecutivebyKellyA.McGuire
The Value of Business Analytics: Identifying the Path to Profitability by
EvanStubbs
(cid:2) (cid:2)
TheVisualOrganization:DataVisualization,BigData,andtheQuestfor
BetterDecisionsbyPhilSimon
Using Big Data Analytics: Turning Big Data into Big Money by Jared
Dean
WinwithAdvancedBusinessAnalytics:CreatingBusinessValuefromYour
DatabyJeanPaulIssonandJesseHarriott
For more information on any of the above titles, please visit
www.wiley.com.
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Artificial
Intelligence
for Marketing
Practical Applications
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Jim Sterne
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ThisbookisdedicatedtoColleen.
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Contents
ForewordbyTomDavenport xiii
Preface xvii
Acknowledgments xix
Chapter1 WelcometotheFuture 1
WelcometoAutonomicMarketing 3
WelcometoArtificialIntelligenceforMarketers 3
WhomIsThisBookFor? 5
TheBright,BrightFuture 6
IsAISoGreatifIt’sSoExpensive? 7
What’sAllThisAIThen? 9
TheAIUmbrella 9
TheMachinethatLearns 10
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AreWeThereYet? 14
AI-pocalypse 15
MachineLearning’sBiggestRoadblock 23
MachineLearning’sGreatestAsset 24
AreWeReallyCalculable? 56
Chapter2 IntroductiontoMachineLearning 59
ThreeReasonsDataScientistsShouldReadThisChapter 59
EveryReasonMarketingProfessionalsShouldRead
ThisChapter 60
WeThinkWe’reSoSmart 60
DefineYourTerms 61
AllModelsAreWrong 62
UsefulModels 64
TooMuchtoThinkAbout 66
MachinesAreBigBabies 68
WhereMachinesShine 69
StrongversusWeakAI 71
TheRightToolfortheRightJob 72
MakeUpYourMind 88
OneAlgorithmtoRuleThemAll? 89
AcceptingRandomness 92
ix
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x CONTENTS
WhichTechIsBest? 94
FortheMoreStatisticallyMinded 94
WhatDidWeLearn? 101
Chapter3 SolvingtheMarketingProblem 103
One-to-OneMarketing 105
One-to-ManyAdvertising 107
TheFourPs 108
WhatKeepsaMarketingProfessionalAwake? 109
TheCustomerJourney 111
WeWillNeverReallyKnow 111
HowDoIConnect?LetMeCounttheWays 114
WhyDoIConnect?Branding 117
MarketingMixModeling 119
Econometrics 121
CustomerLifetimeValue 121
One-to-OneMarketing—TheMeme 122
Seat-of-the-PantsMarketing 123
MarketinginaNutshell 124
WhatSeemstoBetheProblem? 126
(cid:2) Chapter4 UsingAItoGetTheirAttention 128 (cid:2)
MarketResearch:WhomAreWeAfter? 128
MarketplaceSegmentation 131
RaisingAwareness 141
SocialMediaEngagement 155
InRealLife 158
TheB2BWorld 158
Chapter5 UsingAItoPersuade 165
TheIn-StoreExperience 168
OnthePhone 178
TheOnsiteExperience—WebAnalytics 179
Merchandising 186
ClosingtheDeal 188
BacktotheBeginning:Attribution 193
Chapter6 UsingAIforRetention 200
GrowingCustomerExpectations 200
RetentionandChurn 202
ManyUnhappyReturns 204
CustomerSentiment 208
CustomerService 209
PredictiveCustomerService 216
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CONTENTS xi
Chapter7 TheAIMarketingPlatform 218
SupplementalAI 218
MarketingToolsfromScratch 221
AWordaboutWatson 224
BuildingYourOwn 230
Chapter8 WhereMachinesFail 232
AHammerIsNotaCarpenter 232
MachineMistakes 235
HumanMistakes 241
TheEthicsofAI 247
Solution? 258
WhatMachinesHaven’tLearnedYet 260
Chapter9 YourStrategicRoleinOnboardingAI 262
GettingStarted,LookingForward 264
AItoLeverageHumans 272
CollaborationatWork 274
YourRoleasManager 276
KnowYourPlace 282
AIforBestPractices 286
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Chapter10 MentoringtheMachine 289
HowtoTrainaDragon 290
WhatProblemAreYouTryingtoSolve? 291
WhatMakesaGoodHypothesis? 294
TheHumanAdvantage 297
Chapter11 WhatTomorrowMayBring 305
ThePathtotheFuture 307
Machine,TrainThyself 308
IntellectualCapacityasaService 308
DataasaCompetitiveAdvantage 310
HowFarWillMachinesGo? 316
YourBotIsYourBrand 319
MyAIWillCallYourAI 321
ComputingTomorrow 325
AbouttheAuthor 327
Index 329
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