Abstract
In the business world, the digital transformation has ushered in an era of unprecedented change. The explosive growth of digital technology over the past three decades has profoundly changed how businesses operate, compete, and engage with their customers. Businesses across industries have been forced to navigate this constantly changing environment due to the adoption of cloud computing, data analytics, the growth of e-commerce, and the rise of artificial intelligence. Organizations are forced to reconsider their strategies, operations, and consumer engagement models as a result of this significant instability. This chapter discusses the role of artificial intelligence in aiding customised and personalized marketing strategies, acknowledging the diverse preferences and behaviour of consumers. It shares insights on branding and customer management in an AI-driven environment. It also emphasises on online and technology-mediated customer engagement.
Top2. Background To The Study
The CE (customer engagement) can be defined as “A consumer's positively valenced brand-related cognitive, emotional, and behavioral activity during or related to focal consumer/brand interactions”. Islam and Rahman (2016) have also similarly defined CE as “the customer's willingness to actively engage and communicate with the focal object (e.g., brand, organization, community, website, or organizational activity), [which] varies in magnitude (high/low) and direction (positive/negative) based on the type of customer interaction with various touch-points (physical/virtual).” CE has acquired a central position in the recent marketing literature.
Customers now have nearly complete brand transparency as a result of the advent of the digital era. Customers are so empowered in this increasingly networked world that everything can be replaced for them, including functions, services, content, and products. This shift is being driven by the emergence of interactive Web 2.0 as well as technical developments like artificial intelligence (AI), big data, augmented reality (AR), and the Internet of Things (IoT). These innovations have become an essential part of consumers' lives, coupled with various social networking platforms. Today's tech-savvy consumers spend a significant amount of time online due to the increasingly interactive nature of the environment. To engage consumers with their businesses, marketers are consequently investing heavily in offering seamless digital experiences and quick, personalized solutions.
In the last several years, the online CE landscape has expanded quickly, and consumers have moved from being “passive information receivers” to active “value co-creators” who participate in the creation of new products and services. This participation of consumers would bring a paradigm shift in business operations shortly.
In the next paragraphs, we try to look into the importance of digital transformation in the current scenario of the business.
Key Terms in this Chapter
Business Models: A business model is a structure that describes how an organization generates, provides, and obtains value. It explains the fundamental components and strategies that a company uses to run, generate financial resources, and sustain its operations.
Predictive Analytics: In the field of data analytics, predictive analytics employs machine learning and statistical algorithms to find trends and forecast future results or events.
Artificial Intelligence: Refers to the replication of human intellect in machines, such as computers. It entails creating software and computer systems that are capable of carrying out operations that normally demand human intelligence. Problem-solving, learning, reasoning, understanding of language used in conversation, pattern recognition, and decision-making are some of these responsibilities.
Big Data: Large and complicated datasets that are difficult to handle, process, or analyze with conventional data processing methods are referred to as “big data. These datasets are characterized by their volume, velocity, variety, and often, their veracity.
Semantic Brand Score: It entails analyzing how a brand is mentioned, discussed, and seen in a variety of online sources, including social media, news stories, blogs, and customer reviews, using machine learning and natural language processing (NLP) techniques.
Artificial Neural Networks: They are an essential feature of artificial intelligence and machine learning, especially in the deep learning discipline.
Digital Transformation: It is the process of utilizing digital technologies to alter different parts of an organization or business in a meaningful and frequently fundamental way. It entails using digital tools and technologies to rethink and reengineer how a business runs, serves its clients and generates value.
Chatbots: Other names for chatbots include “virtual assistants” and “conversational agents.” They can communicate with people by text or speech, offering information, responding to queries, carrying out tasks, and even having casual conversations.