How SMEs are adopting AI tools to Boost Marketing Performance : Evidence from South Korean SMEs in Indian Market

Abstract

  This research examines the integration of Artificial Intelligence Marketing (AIM) by South Korean SMEs in the Indian market and its impact on marketing performance. AIM tools such as chatbots, predictive analytics, and personalized marketing techniques have enabled these firms to improve customer satisfaction, streamline operations, and achieve better targeting. The study is based on qualitative data collected from South Korean SMEs with sectors dealing in cosmetics, logistics, and healthcare, all expanding in India.

Key findings:

• AI Integration: 60% of the surveyed SMEs are in the planning or partial integration stages of AIM.


• Marketing Efficiency: 70% of SMEs reported increased marketing efficiency, including time savings and improved campaign management.


• Sales and ROI: AI integration resulted in a 10–20% sales increase for 40% of SMEs, with some reporting up to a 50% improvement in conversion rates.


• Customer Retention: 66% of SMEs experienced improved customer retention, while 50% reported increased customer engagement through digital platforms.


• Challenges: 66% of SMEs identified data accuracy as a major barrier, while 50% pointed to the complexity of AI system integration and high implementation costs.

These findings illustrate how AIM adoption is helping SMEs enter new markets, identify customer segments, and personalize their marketing strategies, enhancing both customer satisfaction and business performance. The findings reveal that AIM adoption significantly improves marketing precision and customer insights, providing a competitive edge in the rapidly growing Indian market. However, SMEs also face challenges such as high costs, data quality issues, and system integration complexities.