Can AI and Machine Learning Improve Franchise Marketing?

February 8, 2023
By   Alexandra Few
Category   Franchise Marketing

Artificial intelligence (AI) and machine learning are outstanding tools that many digital marketers use as a way to boost their efficiency and optimize their marketing strategy. In fact, 80% of experts in the industry implement AI in their online marketing.

It can feel like the world of AI is expanding by the second, especially with all of the ground-breaking technology emerging, which is why the AI market is expected to reach over $107.5 billion by 2028. However, as a franchise system, using this technology, even for what seems like small tasks, can make a significant difference in your online content. An example can be with the use of ChatGPT. This AI-powered chatbot can spue out answers to your prompts using human-like responses, which can provide an opportunity for you to boost your franchise marketing efforts with the ideas presented by this software.

Machine learning in the context of digital marketing is often used to help marketers analyze and identify patterns in large sets of data, while also allowing them to generate current and future insights based on the behaviours and preferences of consumers. Machine learning can essentially learn by itself through the data that gets fed into it – the more it receives, the more it learns and the more effective it becomes. It is because of this “learning” that it can make predictions based on its lean from the inputted data. It is through powerful learning algorithms that can control the search results you receive, the ads that are shown to you, the posts you engage with on social media, etc.

AI, on the other hand, can be used for automation purposes within digital marketing. Rather than “learning” based on the great amount of data it is given, like machine learning, AI has programs built into it to mimic human cognition. This can be extremely useful for marketers to dynamically generate personalized content and ads based on user characteristics and business objectives. A common example of AI and its useful automation is with email marketing. Utilizing this technology, various types emails can be sent out to segments of a brand’s target audience. From the subject line to the message in the email, AI can help tailor the content to the customer.

Combined, machine learning and AI are often used in the marketing channels you already turn to, such as Meta and Google. A/B tests on various creates and landing pages, creating audience segments and finding look-alike audiences based on your current customers, and dynamically creating ads are just some of the results you can get from using this technology.

The Benefits Of Using AI and Machine Learning in Digital Marketing

There are several benefits to using these technologies, but within digital marketing, they can help in four general areas:

  1. Personalization: When it comes to producing personalized content, offers, products, and ads, machine learning works by processing large amounts of data to ensure the consumer receives the personalized content that correlates to their behaviour and preferences. For example, their behaviour on a webpage can result in them receiving retargeted content, such as through a follow-up email.
  2. Audience segmentation: Reaching your target audience is key, and AI can help by analyzing the characteristics, behaviours, and other patterns of consumers to help you uncover new segments to target. From a content perspective, for example, AI can recognize what type of content can lead to greater interest and engagement from certain audience segments, thus ensuring the right type of content is reaching the right type of people.
  3. Cost efficiency: Through marketing automation, the time that is spent on analysis, optimization, and reporting is reduced.
  4. Optimize media mix: Using automation, advertising dollars can be allocated to different media platforms based on how well they are performing in the given moment. Knowing that this is going on in the background eliminates the need to constantly be checking on performance data, and can reassure you that money is being spent in the right places.

Creating Local Content Using AI and Machine Learning

Franchise systems and localization go hand-in-hand, especially since the franchisees in your network are local business owners in their community building relationships with local customers. As a result, implementing a localized in your digital marketing strategy can be an effective way to take part in the “buy local” trend evident among consumers.

Within content such as social media posts, landing pages, and ad copy, automation can be used to programmatically insert local terms. In other words, nationally created copy can be populated with local terms, such as the name of a particular city, for example, and that can be applied to as many franchise locations in your network (ex. “Calling all parents in (insert city) …”). This can be extremely cost-effective and saves a great deal of time, especially if you have a large number of franchise locations.

While the world of AI and machine learning is large, it doesn’t have to feel overwhelming. Utilizing the technology, even in small ways, can assist in your digital marketing strategy both for the franchise business in general and for each franchise location.

Top 5 franchise digital marketing trends for 2023


To read more about this and other trends franchise systems can look out for this year, check out our Top 5 Franchise Digital Marketing Trends for 2023 guidebook available for download here.



This article is part of a series. Check out our other articles below:



AI franchise Machine Learning


Alexandra Few

Alexandra is a Content Producer at Reshift Media. Her work in our social team includes creating and designing content for social media, as well as researching and developing blog posts, landing pages, and other forms of web content for several brands. She has completed certifications in digital marketing, professional writing, and digital strategy and communications management, and she has published work on topics that range from franchising and social media to music and wellness.

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