Example of AI Saving Time and Money in Customer Targeting

Let’s say an online clothing store wants to sell more winter jackets. Instead of running broad ads to everyone, they use AI customer targeting to focus on the best potential buyers.

Before AI: Manual Targeting (High Cost, Low Results)

• The store runs ads on Facebook and Google for all users aged 18-50.

• Many people see the ads, but only a few actually buy jackets.

• The business spends $10,000 on ads but gets only 50 sales at $100 each.

• Cost per sale: $200 (meaning they lose money).

After AI: Smart Targeting (Lower Cost, Higher Results)

• AI studies past customer data and finds who buys winter jackets the most.

• It learns that people in cold regions who recently searched for winter gear are the best buyers.

• The AI automatically adjusts ad targeting to show ads only to people living in snowy cities who have looked at winter clothes online.

• Now, they spend only $5,000 on ads but get 150 sales at $100 each.

• Cost per sale: $33 (huge profit increase!).

Why This Works

AI eliminates wasteful spending by finding the right audience and adjusting ads in real time. The store doesn’t waste money showing ads to people in warm climates or those uninterested in winter gear. Instead, it focuses every dollar on buyers who are ready to purchase.

That’s how AI customer targeting saves businesses time and money while increasing sales!