The Global AI market is set to grow at 37.3% CAGR from 2023 to 2030. This leaves little doubt to the role that AI will come to play in revolutionizing industries, shaping economies, and transforming the way we live and work. From real-time language translation to autonomous drones, AI is everywhere and will continue to become ubiquitous in our day-to-day lives. This includes SMBs, OEMs and tech-savvy llamas, who are integrating AI at a rapid pace and will continue exploring AI’s economic potential.
What is interesting is that AI presents unique opportunities for small businesses looking to level the playing field with their monolith counterparts. Top business players have the industry experience, market share and the financial and technological resources to dominate the market.
Large Marketing Budgets = broader demographic reach, experiential marketing, and extensive ad spend.
However, with AI, small businesses can bridge the gap and compete on equal footing with data-driven insights, personalized customer experiences, and efficient decision-making.
Here are a few areas for AI usage that will give startups and SMBs a power boost:
Predictive Customer Churn
Use case: A small SaaS startup harnesses AI to predict customer churn, taking proactive measures to improve retention and reduce acquisition costs. By leveraging AI-driven insights, the startup enhances customer satisfaction, gaining a competitive edge in the market, and fueling its future-readiness.
AI acts as an early warning system for potential customer churn, giving small businesses time to proactively address internal issues and resolve customer concerns before they escalate. Top churn prediction software solutions available in 2023 include Akkio, Churnly Qualtrics XM and Fayrix.
Here are a few more ways that AI can help bring down churn –
Analyzing historical customer data to identify potential churn patterns.
Customer Segmentation with AI
Categorizing customers based on churn probability and building targeted retention strategies for high-risk clients.
AI-driven Predictive Analytics
Identifying upsell and cross-sell opportunities to increase customer lifetime value and reducing churn with AI-powered insights.
AI-Based Sales Forecasting
Use case: A B2B software provider employs AI to forecast sales trends. Accurate predictions help sales teams plan resources, set targets and identify potential growth opportunities more effectively.
Here are a few ways that AI can help with Sales Forecasting –
- Incorporating external data sources, such as market trends and economic indicators, to enhance forecasting accuracy.
- Automating sales data collection and analysis, saving time and resources for sales teams.
- Integrating AI-driven demand forecasting to manage inventory efficiently and avoiding stockouts.
- Utilizing AI-based predictive lead scoring to prioritize sales efforts and focusing on high-value prospects.
- Integrating AI-powered CRM systems to streamline sales processes and optimizing customer interactions.
Sales forecasting tools for SMBs in 2023 include Brevo, Pipedrive, Zoho and HubSpot.
Dynamic Pricing Optimization
Use case: A growing product-based startup uses AI algorithms to optimize pricing based on demand, competition, and customer behavior. The retailer offers competitive prices while maximizing profits.
Businesses can integrate AI with e-commerce platforms to dynamically adjust prices based on real-time demand and inventory levels. Other AI options include incorporating AI-driven price elasticity models to determine the optimal pricing points and analyzing real-time market data and customer behavior for dynamic pricing adjustments.
Best pricing optimization software for small businesses: mScanIt, Qualtrics CoreXM, Wheelhouse and Prisync.