In the last week of February, the fast-food chain Wendy’s had a real PR problem on its hands. Their new CEO, Kirk Tanner, announced in an earnings call that one of the initiatives Wendy’s was planning to implement would be dynamic pricing. He promoted that new menu boards in Wendy’s restaurants would adjust prices automatically – based on a set of factors that he didn’t define very well – during the call.
Word spread. And a backlash ensued. Audiences everywhere from Main Street to Congress took dynamic pricing to mean surge pricing… as practiced by ride sharing brands like Uber to raise prices.
Within days, Wendy’s released a series of press releases and interviews to stem the bad press. In a statement to NBC News’ Today Show, a Wendy’s representative tried to explain, “… Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn’t use that phrase, nor do we plan to implement that practice.”
“We said these menu boards would give us more flexibility to change the display of featured items. Any features we may test in the future would be designed to benefit our customers and restaurant crew members. Digital menu boards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day.”
“As we’ve previously shared, we are making a significant investment to accelerate our digital business. Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menu boards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather.”
What jumped out at us more than anything else in that fiasco was in the last sentence. AI-enabled.
There’s that phrase again.
Yes, artificial Intelligence is top-of-mind for both business and culture. Generating opportunity. And as well, contributing to fear.
Let’s pause for just a moment.. and imagine what AI means to building materials marketing.
Marketing has always been a dynamic field. The widespread availability of generative artificial intelligence in just the last year… has helped to make it even more so. Staying on top of technological developments has never been more pressing. New AI tools can be formidable. Developed to empower business models.
To enhance efficiency. And drive growth.
Cutting-edge AI expands upon the existing novelty of having a conversation with voice-activated tools like Alexa or Siri. Now, it’s designed to perform better predictive analytics. And even deliver personalized customer experiences. Yes, AI offers an enormous number of tools to harness for marketing to home builders.
AI in Building Materials Marketing
AI is not merely a buzzword – it’s a transformative force reshaping industries worldwide – and the building materials industry is no exception. By utilizing AI-powered solutions, marketers can analyze vast amounts of data. Streamline operations. And deliver hyper-targeted campaigns. From optimizing pricing strategies to predicting market trends… AI empowers marketers to make data-driven decisions with unparalleled accuracy. And increased efficiency.
Best Practices for Leveraging AI in Building Materials Marketing
Data Mining and Analysis Begin by sifting existing databases to extract valuable insights. Utilize AI algorithms to analyze customer behavior – determine market trends – and review competitor strategies. By understanding patterns and correlations within current data, it’s possible to uncover actionable insights to better inform (and align) future marketing and sales strategies.
Predictive Analytics Leverage AI-driven predictive analytics to help forecast market trends and anticipate audience behavior. By identifying patterns – and extrapolating trends from historical data – these tools can foreshadow market shifts. Optimize inventory management. And tailor marketing efforts.
Personalized Marketing Campaigns Embrace AI-powered personalization to create unique experiences for target audiences. Utilize machine learning algorithms to segment audiences… based on demographics, preferences and purchase history. By delivering personalized content and recommendations, forward-facing teams can better drive customer engagement. And increase conversion rates.
Dynamic Pricing Strategies Leverage AI-driven dynamic pricing strategies – to optimize revenue – and maximize profitability. Not to be confused with surge pricing, dynamic pricing allows algorithms to analyze market demand, inventory management and competitor pricing. To adjust opportunities (like offering value-added cost bundles) in real time.
Chatbots and Virtual Assistants Integrate AI-powered chatbots and virtual assistants into customer service ecosystems. These intelligent conversational agents can provide instant support – answering queries and assisting with selections – throughout the purchasing journey. These tools add to a brand’s ability to offer seamless and efficient customer service… enhancing satisfaction. And creating loyalty.
Content Generation and Optimization AI-driven content generation tools streamline messaging. From generating product descriptions – to optimizing SEO keywords – AI can automate repetitive content tasks. To better maintain consistent publishing schedules. And drive organic web traffic.
Marketing Automation Embrace AI-powered marketing automation platforms to streamline marketing workflows. And optimize campaign performance… including lead nurturing. By leveraging AI-driven automation, Building Product brands can unleash valuable time and resources to better focus on strategic innovation.
AI presents a wealth of opportunities in marketing for construction to revolutionize strategies and drive business growth. By leveraging data-driven insights – predictive analytics and personalized experiences – marketers can stay ahead in increasingly competitive landscapes. From optimizing pricing strategies to enhancing customer engagement… AI empowers marketers to unlock paths with less friction. And more success.
If you’re interested in exploring how to expand your array of marketing tools, we’re here to help. Send an email to Steve at sk@kleberandassociates.com to get the conversation started.
