The Use of Explainable Artificial Intelligence (XAI) in Effective Marketing Campaigns

In today’s competitive environment, the outcomes of marketing efforts can directly determine a company’s success or failure. Understanding the variables influencing customer loyalty is crucial for businesses aiming to increase their sales.

Businesses must conduct comprehensive research and insight analysis of their customer data to achieve effective campaign targeting. By identifying what truly resonates with customers, they can adapt their strategies to meet and exceed expectations, gaining a competitive advantage in a rapidly evolving market.

Artificial intelligence has become integral to nearly every aspect of sales and marketing processes in businesses today. Explainable AI (XAI) transforms how companies analyze their marketing activities, offering numerous new opportunities by distinguishing itself from traditional AI.

XAI includes powerful tools like SHAP, LIME, and ELI5, which help unravel AI models' decision-making mechanisms.

These approaches transform complex data into easily accessible explanations, providing clear and understandable insights into why customers react to certain ads.

This enables businesses to illuminate the inner workings of AI, bridging the gap between machine learning and human understanding, enhancing trust and facilitating smarter, data-driven decisions.

At Next4biz, we emphasize the importance of using XAI to enhance the performance of marketing campaigns. By utilizing XAI, businesses that use the Next4biz CRM product can refine their targeting tactics by analyzing customer interactions and identifying key features such as email content, demographic information, and purchase history.

This improves the efficiency of marketing campaigns and boosts customer satisfaction.

By leveraging XAI, businesses can create personalized experiences that deeply resonate with their target audiences, leading to higher engagement rates and increased sales. Understanding the underlying reasons behind customer behavior provides a significant advantage in achieving marketing success.

Click here for the full text of our scientific study titled “Enhancing Targeting in CRM Campaigns through Explainable AI,” presented at the International Intelligent and Fuzzy Systems INFUS 2024 Conference, held from July 16-19 at Çanakkale 18 Mart University.

Akhan Akbulut

Professor Doctor Akhan Akbulut worked in the Computer Engineering departments of Istanbul Kültür University and NC State University. He serves institutions such as TÜBİTAK, Ministry of Industry and Technology, TÜSEB, and KOSGEB. He researches Distributed Systems and Artificial Intelligence and has over 100 international journal articles and conference proceedings from his work.