The Benefits of Using AI for Small Business Marketing

April 24, 2023
7 min read

Written by Raluca

Content Writer

AI for small business is becoming increasingly popular as more businesses start to acknowledge the potential of this technology. This kind of marketing can help with your usual business processes and assist you in creating targeted campaigns that reach your customers more effectively.

If you’re looking to reduce the costs associated with traditional tools, make sure to implement AI. From increased customer segmentation to content generation, AI offers a wealth of advantages when it comes to engaging new audiences and creating lasting relationships with existing ones.

In this article, we’ll focus on the main benefits of using AI for small business marketing. Let’s start, shall we?

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What Does AI Technology Imply for Small Business Marketing?

Small businesses can greatly benefit from incorporating AI technology into their marketing strategies. AI-based marketing tools can streamline many digital campaign processes, including content creation, optimizations, and ad campaigns.

In particular, exploring multimodal AI can enhance small business marketing strategies by integrating various data types, such as text, image, and video, to create richer customer insights and more personalized interactions.

By utilizing AI, businesses can gain a deeper understanding of their target audience through the analysis of large data sets. This enables companies to create personalized messages that may resonate with new prospects.

Moreover, AI can help businesses discover new opportunities for customer engagement, such as by segmenting customers based on their interests and behaviors. Armed with this knowledge, businesses can make informed decisions about how best to reach out to their customers and build stronger relationships with them.

What Marketing Challenges Do Small Businesses Face?

Small and medium-sized businesses are always juggling multiple demands. This can be counterproductive, especially when you’re stuck with limited budgets. New technology, such as artificial intelligence, can be of great help in this scenario.

In fact, a study showed that 63% of small businesses are interested in using AI.

Here are the top five marketing challenges that small businesses face:

Inconsistent online presence
Budget and time limitations
Balancing marketing and business tasks
Difficulties delivering quick customer support
Trouble keeping up with competitors

1. Inconsistent Online Presence

Maintaining a regular and active online presence on various digital channels such as social media, search engines, and other online platforms can be a challenging task.

An inconsistent online presence can lead to reduced visibility, decreased traffic to the business’s website, reduced engagement with its target audience, and ultimately, fewer sales.

Solution: Streamline the Content Marketing Process

To simplify their content marketing process, small businesses can take advantage of several tools and resources, such as an AI-powered writing assistant, text-to-image and video generators, and social media post writers.

Social media post tools, for instance, enable them to create engaging content for their social media channels in a quick and straightforward manner.

These tools typically come with customizable and pre-made templates that businesses can modify to fit their unique brand and message.

Looking for an AI-powered social media tool? Look no further than SocialBee’s AI post generator!

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Here’s how you can use SocialBee’s AI post generator:

Sign up and link your social media accounts: To get started with SocialBee, create an account and connect all your social media channels to the platform. This will allow the app to automatically schedule and post content on your behalf.
Access the AI from the post creator: To use the artificial intelligence feature in the post creator, start by clicking the “Add Post” button located at the top of the screen. Once you’ve selected the social channels where you want to publish your post, click on the “AI” button located in the description box at the lower-right corner of the screen. From there, choose the “Generate captions” option to create suitable captions for your post.
Customize over 1,000 AI prompts: SocialBee provides a vast library of AI-generated prompts to help you create engaging content across various social media platforms and industries. The more information you provide, the better the results.
Choose your brand’s tone of voice: With SocialBee’s AI tool, you can select a tone of voice that matches your brand’s personality, from friendly and enthusiastic to witty and informative.
Specify the word count: SocialBee’s free AI post generator allows you to easily specify the number of words you need for your upcoming social media post.
Get hashtag and emoji suggestions: Activate the “Generate hashtags” and “Include emoji” buttons to simplify your research process and let the AI suggest the most relevant and engaging options.
Set the number of posts: Indicate the exact number of social media posts you want to generate.
Schedule your AI-generated content: Once you’ve created your posts, schedule them with SocialBee. You can also use the app’s advanced scheduling features to publish your content at optimal times.
Monitor your performance: With SocialBee’s analytics, you can gain insight into critical performance metrics, including engagement levels, reach, and audience expansion, as well as the top three post types and categories.

If you’re looking to streamline your social media marketing efforts and take advantage of the power of AI, try SocialBee’s 14-day free trial today!

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2. Budget and Time Limitations

Small businesses frequently have to work on a budget, on top of being limited by time. Smaller organizations typically face these two aforementioned challenges due to their constrained resources compared to larger organizations.

To make the most of their budget, they need to prioritize their spending and allocate their resources strategically. This often involves making difficult decisions between various marketing initiatives, such as investing in advertising, hiring new staff, or enhancing their website or social media presence. Moreover, it’s crucial for small businesses to establish financial organization by opening a separate business bank account. This not only streamlines financial management but also helps in tracking expenses and revenue more effectively.

In addition, small businesses often face time constraints since they usually work with a limited team and must manage multiple responsibilities simultaneously. Small business owners are typically involved in all aspects of their business, including marketing, sales, finance, and operations, which leaves them with little time for tasks like content creation, social media management, or other marketing activities.

Solution: Assist Human Marketers

Artificial intelligence can help small businesses stay on budget by providing data-driven insights and recommendations for optimizing marketing spend.

Here are some ways AI can help:

Predictive analytics: Through machine learning, artificial intelligence can forecast the results of future marketing campaigns. By doing so, small businesses can optimize the allocation of their marketing budget and prioritize the most promising marketing initiatives.
Real-time monitoring: Real-time monitoring of marketing performance using AI empowers small businesses to swiftly recognize and modify underperforming campaigns. This capability prevents overspending on ineffective marketing initiatives and helps businesses stick to their budget.
Cost optimization: Small businesses can leverage AI to optimize their marketing budget by identifying opportunities to reduce costs, such as more efficient advertising channels or targeting strategies. This approach helps businesses maximize their return on investment and remain within their budgetary limits.
Automate tasks: With artificial intelligence, small businesses can automate tasks like content creation without having to hire additional staff. That way, they can do more with less and prevent them from having to constantly hire new staff.

3. Balancing Marketing and Business Tasks

Small business owners wear many hats and are responsible for various aspects of their business, such as operations, finance, and customer service, in addition to marketing. This can make it challenging to devote enough time and resources to marketing efforts.

Solution: Lower Content Marketing Costs

Small businesses can benefit from artificial intelligence technologies to maximize the impact of their content marketing budget while minimizing effort and cost. AI has the potential to reduce content marketing expenses for small businesses in various ways.

Firstly, AI-powered content generators can create high-quality content quickly and affordably. Secondly, AI can optimize content for search engines, leading to higher visibility and lower advertising and promotional costs. Finally, AI can personalize content, leading to improved engagement and conversion rates.

4. Difficulties Delivering Quick Customer Support

Limited resources can present a challenge for small businesses, particularly when it comes to providing prompt customer support while managing other business tasks. Customers expect quick and responsive customer support, which can significantly impact their overall satisfaction with the business.

Additionally, small businesses may lack the necessary technology or staffing resources to handle customer support requests effectively. This may result in unanswered inquiries or longer resolution times, potentially leading to dissatisfied customers and negative reviews.

Solution: Boost Customer Experience

Small businesses can boost customer experience with chatbots, email marketing, and human resources in several ways, including:

Chatbots: Chatbots can be programmed to address frequently asked questions, offer product recommendations, and help with purchases. This way, the overall customer experience can be improved by simply providing timely and convenient support.
Email marketing: Small businesses can strengthen customer relationships by utilizing email marketing, which enables them to send personalized offers, promotions, and newsletters tailored to customers’ interests and preferences. This can keep customers informed and engaged with the business, resulting in improved customer retention and satisfaction.
Human resources: Small businesses can enhance the customer experience by prioritizing their human resources. By recruiting and training employees to use AI on a daily basis, small enterprises can offer exceptional customer service and develop robust customer relationships. Integrating small business HR software systems further strengthens this approach. These softwares enable streamlined recruitment processes, ensuring the hiring of talent for improved customer interactions.

5. Trouble Keeping Up with Competitors

Small businesses frequently struggle to keep up with their competitors who may have greater resources, bigger budgets, and advanced technologies that enable them to provide a wider range of products or services.

Moreover, they can encounter difficulties in setting themselves apart from their rivals, which can make it challenging to establish a distinctive presence in a competitive market.

Solution: Improve Your Products and Services

You can enhance your products and services by utilizing AI to offer personalized experiences, improve product quality, and optimize pricing strategies.

With the help of AI, small businesses can achieve a competitive edge and enhance customer satisfaction.

Process automation: By automating tasks such as data entry and customer service inquiries, AI can help small businesses free up their staff resources to focus on more critical tasks like product development and innovation.
Visual identity:AI art tools can aid small business owners in enhancing their visual identity by generating distinctive and captivating designs for their branding materials like logos, website graphics, and social media posts.
Pricing optimization: Small businesses can leverage AI to analyze market data and customer behavior and optimize their product pricing, which can help them stay competitive and maximize profits.

Frequently Asked Questions

1. What Should Small Businesses Look for in AI Tools?

Small businesses should look for several key features when evaluating AI tools, including:

Scalability: The AI tool must have the capability to scale and adapt to the evolving requirements of a growing business, including managing higher volumes of data processing or customer requests.
Customizability: The AI tool should be adaptable and configurable to meet the particular requirements of the business, such as analyzing industry-specific data or tracking customer behavior in a customized manner.
Integrations: The AI tool should be compatible with the business’s current systems and technologies, including e-commerce platforms and customer relationship management (CRM) software, to ensure smooth integration and efficient workflow.
Ease of use: The AI tool should have a user-friendly interface and be easily accessible to all staff members, regardless of their technical skills. This can help promote widespread adoption and ensure that the business can maximize its return on investment.
Cost-effectiveness: The AI tool’s return on investment should be reasonable and aligned with the business’s budgetary limitations.

2. How Expensive Is AI for Small Business Owners?

The cost of AI for small business owners has been decreasing as the technology has become more accessible and the competition has increased. Affordable pricing plans for AI tools and services are now available, which are designed to meet the needs and budget constraints of small businesses.

The prices can range from a few hundred dollars to thousands, depending on your needs.

3. How Can Small Business Owners Adopt AI Solutions with a Limited Budget?

In order to adopt AI solutions with a limited budget, start with implementing low-cost AI solutions that offer a high return on investment (ROI), such as chatbots or social media post generators. These tools can help automate repetitive tasks, enhance customer engagement, and reduce the workload for staff.

Another option is to consider using open-source AI tools that are freely available to the public. Numerous open-source AI tools are accessible for various business applications, including natural language processing, computer vision, and predictive analytics.

Leverage AI for More Efficient and Profitable Marketing Campaigns!

In summary, AI-powered marketing presents an opportunity for small business owners to reach their customers in a more efficient and effective manner. By leveraging AI-based marketing technologies, small businesses can gain a competitive advantage and increase their return on investment.

Therefore, AI-driven marketing is an indispensable tool for small businesses that aim to thrive in the digital age.

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