Diversify Small Business Income with AI in 2023

Diversify Small Business Income Using AI: 5 Easy Strategies for 2023

Ready to revolutionize your small business? 🚀 Discover how experts diversify small business income using AI, opening doors to limitless growth and success!

AI is everywhere and can support almost every function inside your business model today. 

From almost every process in marketing to deep operations analytics, you can leverage AI to completely transform how you engage with your customers starting today.

Statistic: Future areas in which AI will help e-commerce businesses according to decision makers in North America and Europe in 2021 | Statista
Find more statistics at Statista

As a seasoned marketing professional helping SaaS companies build valuable businesses, I initially hesitated when AI arrived.

“It requires more work,” I thought.

“I can do this faster,” I believed.

“Can this replace team members?” I pondered.

Before I truly understood the value, AI was already an instrumental team member in many parts of our organization: my blog, SaaS companies I’ve consulted for, and my Agency operations. How?

Transforming into the digital age has never been easier with these tools. Small businesses can leverage these tools to execute large enterprise-like systems and operations in just a few days.

The best part. It’s easier than you think. And you can be an entirely forward-thinking business by the end of this month – generating new revenue streams in just a few clicks. 

We’re exploring some of the ways we and other local business models are leveraging AI to diversify income streams in 2023.

What are the Best Ways to Diversify Small Business Income Using AI in 2023?

There are now hundreds of AI tools and applications transforming every aspect of the average business model: Sales, Marketing, Product, Customer Service, Finance, and Operations.

The AI applications for your small business will be near limitless by 2024. You’ll need a bit of testing and imagination to customize a solution that’s right for you and your team.

Aside from replacing team members and infusing AI directly into your customer service channels (Chatbots), there are more straightforward ways to get started and become comfortable with AI usage in steps.

Here are some of the most basic applications you can start ASAP.

Explore E-commerce Integrations that Diversify Revenue Streams in a Few Easy Steps

AI-powered e-commerce integrations are redefining the shopping experience yet again. 

The AI enabled Ecommerce market size is expected to grow by 15% or $16.8B by 2030.

App Futura benefits of AI in Ecommerce Diversify Small Business Income Using AI

AI-driven product recommendations ensure personalized journeys for every customer.

Real-time analytics, automated customer support, and streamlined inventory management can make your e-commerce store feel alive and unique for each user.

These are some of the most common AI applications for e-commerce that you can use to generate new revenue streams in 2023.

  • Chatbots and Virtual Assistants: AI-powered chatbots provide real-time customer support, answering queries, assisting with purchases, and resolving issues. They operate 24/7. This can also be a way to globalize operations overnight by appealing to overseas audiences.
  • Inventory Management and Demand Forecasting: AI inventory management tools like Remi enable businesses to maintain optimal inventory levels and manage pricing in real time.

Leverage AI-Enhanced Customer Insights to Identify New Offer Opportunities

AI-driven customer insights unlock a deep understanding of your audience.

These tools enable tailored customer communications at scale. 

By analyzing behavior patterns and preferences, businesses can deliver hyper-personalized experiences, driving customer loyalty and retention. 

These insights also empower data-backed decisions for marketing campaigns, product strategy, and sales growth.

Here are the best ways to leverage these tools to diversify your small business income stream this year.

  • Personalized Marketing Campaigns: Use AI-driven insights to create personalized marketing campaigns. Ai Tools like Meltwater can help you build tailored offers that convert through a personalized approach. It’s like showing a customer you’ve been paying attention. And that you care.
  • Product and Service Improvements: AI-enhanced customer insights can highlight areas where products or services need improvement. By analyzing feedback and behavior patterns, small businesses can identify opportunities for innovation. Become an innovative brand in your market by evolving alongside your customers. Use this as an opportunity to create something new.
  • Customer Retention Strategies: AI insights can aid in predicting customer churn by identifying signs of disengagement or dissatisfaction. Small businesses can leverage AI retention software to solve the following:
    • User onboarding and App Engagement
    • Product Analytics and User Engagement
    • Identifying Upsell and Expansion opportunities
    • Chatbot & Customer Support

Use AI-Driven Marketing Campaigns to Improve Targeting and Messaging

AI strategy for local and small businesses needs to focus on maximizing efficiency and then leveraging data to find new opportunities.

This alone has transformed the marketing industry into a complete 180. We used to go directly to consumers and ask questions. 

However, it found that behavioral patterns spoke loudly over time and often contradicted prompted feedback.

The traditional focus group began to diminish with the advent of modern marketing data sets and has empowered hypergrowth SaaS companies worldwide. 

The good news is that these SaaS companies have left evidence of the marketing tactics they’ve used to grow exponentially. And small businesses can now use that to transform their local marketing operations with less risk.

diversify small business income using AI in 2023 Ubbersuggest AI screenshot

Here are 3 simple ways to leverage AI to supercharge your small business marketing strategy with AI:

  • Local SEO Optimization: Use AI-powered small business SEO tools to identify keywords, highlight trends, write content, and optimize ranking in minutes. This process previously took days, but SEO agencies that leverage AI have found more efficiency in producing valuable content at scale for their clients using modern tech. 
  • Hyper-Targeted Advertising: Google Ads, Linkedin Ads, Facebook, and all the major media buying platforms have AI tools built into their advertising platforms and have been using these models long before ChatGPT. The key here is to build structured A/B testing programs, deep analytics architecture, and an optimization culture around these tools to get the most out of them over time. They are designed to learn from results. So, the more variables in results you provide, the smarter these platforms become at advising your ad strategy. 
  • Social Media Engagement: These AI tools can power your social media strategy to the next level overnight. From writing captions and hashtags to scheduling and recycling posts and generating AI prompt varieties, these tools are designed to transform your content from novice to pro in just a few clicks. 

Don’t Forget About Retention: AI-Powered Loyalty Programs

Loyalty programs foster enduring relationships with customers. For small businesses, these programs support your recurring revenue strategy.

The best programs incentivize repeat purchases and amplify brand loyalty.

By rewarding customers for their continued support, local businesses can drive sales and create a dedicated customer base that advocates for their brand in the communities they serve.

3 Ways Your Small Business Can Use AI Tools to Build Revenue Generating Loyalty Programs. 

  • Personalized Rewards and Offers: As discussed with Ecommerce, leverage AI customer personalization tools to create customized rewards and offers tailored to each customer in your database. Design a funnel to engage customers with your brand through content programs and deliver offers at scale to increase the likelihood of conversion.
  • Predictive Customer Engagement: AI can predict when customers will likely purchase based on their past behavior. Send timely and relevant offers or reminders to proactively engage customers. Promote content engagement, sharing, reviews, or even purchases, all of which can boost bottom-line revenue indirectly.
  • Referral and Advocacy Programs: AI-powered loyalty tools like Antavo streamline and power your loyalty programs. For small teams, tools like this can help you get a program up and running in just a few days. In time, you can focus on building a much more comprehensive program that meets your local market’s standards. 

Automated Financial Management

Remember the days when you needed to collect and save every receipt for years just in case the suits showed up to audit everything randomly – that fear you felt each time you categorized each transaction without the help of a CPA.

If you’re still doing this, you are now your business’s most significant risk. Congratulations!

Give up the hand-to-hand financial combat for automated tools and AI assistants.

The Quickbooks Self-Employed App has been one of my favorite small business financial management tools for the last three years. It’s reduced my accounting activities to a few Tinder-like swipes on my phone app from wherever I am.

The Best AI-powered automated financial management tools allow small businesses to:

  • Streamline financial management processes and reduce manual accounting errors for more complex operations. 
  • Provide real-time insights into cash flow, expenses, and budgeting when connected to a business bank account, and empower important financial decisions. 
  • Automate invoicing and expense tracking and allocate more resources to core operations and growth strategies.

The AI-Infused Local Business Model

Small businesses have been finding success in 2023 by leveraging AI to analyze CRM data and create customized marketing offers. 

The best applications of AI I’ve seen have been predictive analytics for personalized data sets. 

Most businesses don’t realize that the siloed data sets housed in the 5-10 tools your operation uses daily can be combined to tell an insightful story about your customers, product, market, and overall business.

Strengths, weaknesses, and opportunities can be harvested and weaponized for any small business model.

According to Forbes, segmenting customer lists by demographics and interests has helped small businesses position their campaigns for increased ROI.

Most small businesses should focus on tools that are easy and intuitive. 

As a rule of thumb, if you need to hire a new team member just to use one tool, you’re already in the hole regarding ROI. 

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