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Generative AI is revolutionizing the way we access information, providing an instant response to almost any query. But how useful is AI like ChatGPT when it comes to creating a solid marketing strategy?
I decided to test ChatGPT’s ability to craft a marketing plan by asking for strategies that could generate new leads and sales for a small business. The AI response offered helpful insights but overlooked some critical elements that have been key to my company’s success. Here’s a breakdown of my experience and what ChatGPT got right—and wrong.
ChatGPT’s Marketing Recommendations
Prompt: Recommend marketing strategies that will generate new leads and sales for a small business in 100 words or less.
ChatGPT’s response:
- Content marketing: Create valuable content (blogs, videos) that address customer pain points.
- Social media advertising: Targeted campaigns on platforms like Facebook and Instagram.
- Email marketing: Engage potential customers with personalized newsletters and offers.
- Referral programs: Incentivize current customers to refer others.
- SEO optimization: Improve search engine rankings with targeted keywords.
- Partnerships: Collaborate with complementary businesses for mutual promotion.
- Local events: Host or participate in community events to build local awareness.
Read: Best CRM of 2024: 8 Simple Tools for Your Business
What ChatGPT Got Right
The suggestions from ChatGPT were a solid starting point. Focusing on content marketing, SEO, and social media advertising is foundational to any successful strategy. Personalized email marketing and referral programs can also drive engagement and sales.
However, the AI’s advice, while good, lacked key insights that have proven instrumental in my company’s growth over 26 years at PostcardMania. Here are three crucial elements ChatGPT missed:
1. Reputation Management and Social Proof
93% of consumers check reviews before purchasing, yet ChatGPT didn’t mention this vital component of building trust with new leads. In today’s digital marketplace, managing online reviews is critical to securing new customers.
The simple act of asking for reviews can dramatically boost your online reputation. 70% of customers will leave a review if asked, and automating this process via platforms like Podium can make it even easier. Since implementing Podium, our review count skyrocketed by 250% from 2020 to 2022, a factor that’s been crucial in building credibility with potential clients.
2. Direct Mail Marketing
ChatGPT also failed to include direct mail marketing, one of the most effective strategies for generating leads. At PostcardMania, we’ve used direct mail since 1998, and we mail 232,000 postcards every week. The return on this investment is clear—our analysis of 114,373 leads in 2023 showed that direct mail leads generate 600% more revenue per lead compared to digital sources.
Direct mail allows businesses to create a lasting impression because of its tangible nature. Studies show people recall printed ads 70% better than digital ads, making it a powerful tool for building brand awareness and driving sales.
3. The Importance of Volume in Marketing
Perhaps the most significant oversight by ChatGPT was failing to advise how much marketing is enough. Many small businesses underestimate the amount of marketing necessary to succeed.
To truly thrive, businesses need to market aggressively and consistently. This involves allocating significant time, resources, and money to marketing efforts. At PostcardMania, we track how marketing volume correlates with revenue. From 2019 to 2023, as we increased our direct mail volume by 16%, our revenue grew by 15% annually.
Pro Tip: If your budget is tight, find areas where you can reallocate funds toward marketing without sacrificing jobs or operational efficiency.
Conclusion: AI is Helpful, But Not Infallible
While ChatGPT provided a reasonable marketing plan, it missed out on essential tactics like reputation management, direct mail, and the importance of scaling up marketing efforts. These strategies have been pivotal in my company’s growth to over $100 million in annual revenue.
If you’re looking to take your marketing to the next level, my advice is simple: Don’t underestimate the power of a comprehensive, aggressive, and multi-channel marketing approach.
