If you’ve been tuned into the marketing world lately, then you’ve probably heard about ChatGPT. An AI-generated chatbot, ChatGPT has gone viral for its ability to write stories, answer questions, compile information, and more. It’s also piqued the interest of entrepreneurs who want to know how small businesses can use ChatGPT.
While ChatGPT is still in its infancy and cannot yet function on the same level as human employees, it can still be a useful tool. Here’s how small businesses can use ChatGPT.
ChatGPT has a fantastic engine for running calculations and will even give you a step-by-step guide on how to do them yourself. These calculations can be used for a variety of purposes, including business. You can use ChatGPT to calculate your average customer’s lifetime value, acquisition costs, and more if you have the necessary numbers.
For example, I gave ChatGPT the following query:
“I have 6,598 customers. On average, each one spends $210 with my business annually. The cost to run my business is $40,000 annually. What are my estimated profits for Q1 of this year?”
This was its output:
“To estimate your profits for the first quarter of this year, we need to calculate your estimated revenue and subtract your estimated expenses.
- Average spending per customer annually: $210
- Total number of customers: 6,598
- Estimated revenue for the year: $210 x 6,598 = $1,378,380
- Estimated revenue for the first quarter: $1,378,380 / 4 = $344,595
- Total cost to run the business annually: $40,000
- Estimated expenses for the first quarter: $40,000 / 4 = $10,000
“Estimated profits for the first quarter:
- Estimated revenue for the first quarter: $344,595
- Estimated expenses for the first quarter: $10,000
- Estimated profits for the first quarter: $344,595 – $10,000 = $334,595
“So, based on this calculation, your estimated profits for the first quarter of this year would be $334,595. However, it’s important to note that this is just an estimate and actual profits may differ based on various factors such as fluctuations in customer spending, unexpected expenses, and changes in the business’s operating costs.”
That’s pretty impressive and can be helpful if you struggle to calculate your business metrics. It can also be a great training tool if you’re trying to explain step-by-step equations to your team.
Writing Basic Content
While it still has many flaws, ChatGPT can still be used to create basic text for content.
To demonstrate this, I gave ChatGPT the following query:
“Write a 5-paragraph blog on how to improve social media marketing.”
And it gave me this output:
“Social media marketing is an important aspect of any business’s marketing strategy, as it helps to reach a wider audience and increase brand awareness. With the ever-evolving world of technology, it’s crucial for businesses to keep up with the latest trends and tactics to improve their social media marketing.
“Here are five ways to improve your social media marketing:
“Define your target audience: One of the most important steps in social media marketing is to identify and understand your target audience. Knowing your target audience will help you determine the type of content that will resonate with them as well as the social media platforms they are most active on. This information will also help you create a strategy that is tailored to your specific audience, ensuring your efforts are more effective and efficient.
“Create high-quality content: High-quality content is essential for any successful social media marketing campaign. This includes eye-catching visuals, engaging captions, and relevant hashtags. Additionally, it’s important to ensure your content is consistent in both tone and style, as this will help to build your brand’s reputation and establish a strong online presence.
“Engage with your audience: Engagement is key when it comes to social media marketing. By regularly interacting with your followers and responding to their comments and messages, you can establish a strong relationship with your audience and increase their loyalty to your brand. Additionally, you can use engagement as a way to gather feedback from your audience and make improvements to your marketing strategy.
“Utilize social media advertising: While organic reach on social media can be limited, social media advertising can help to reach a wider audience and drive more traffic to your website. Platforms such as Facebook and Instagram offer a variety of advertising options, such as sponsored posts and influencer marketing, that can help you reach your target audience and increase conversions.
“Track your results: Finally, it’s important to track your results and analyze the data to determine what’s working and what’s not. This can be done through various analytics tools, such as Google Analytics and Facebook Insights, which can provide valuable insights into your audience’s behavior and the effectiveness of your social media marketing efforts. By regularly monitoring your results, you can make data-driven decisions and continually improve your social media marketing strategy.
“In conclusion, social media marketing is a powerful tool for businesses of all sizes, but it’s important to approach it with a strategic plan in mind. By following these five tips, you can improve your social media marketing efforts and achieve better results for your business.”
While this piece has some flaws, it can create a great starting point for a writer. A human would simply need to come in, clean up the copy, improve the word choice, and edit out redundancies. However, as of right now, ChatGPT’s writing abilities still are not yet on par with a human’s.
Small businesses can also use ChatGPT to gather helpful information. It can summarize movies, TV shows, books, and even complicated theories like quantum computing in seconds. This information can be used for a variety of purposes in academia and also in business.
For example, I gave ChatGPT the following query:
“Can you explain how to start an LLC?”
In response, it gave me the following output:
“Sure, here are some general steps for starting an LLC:
- Choose a name for your LLC that complies with your state’s naming rules and is not already in use by another business.
- File articles of organization with your state’s secretary of state office, which typically requires the name of your LLC, the name and address of your registered agent, and the names of the LLC’s members.
- Obtain any necessary licenses and permits required for your specific type of business and location.
- Create an operating agreement, which outlines the ownership structure and management of your LLC as well as the roles and responsibilities of its members.
- Obtain an Employer Identification Number (EIN) from the IRS, which is necessary for tax purposes and can be obtained online.
- Open a business bank account and obtain any necessary business insurance.
- Comply with any other state and federal tax requirements, such as registering for sales tax if you plan to sell products or services.
“The specific steps and requirements for starting an LLC can vary by state, so it’s important to consult with a lawyer or accountant for advice tailored to your specific situation. Additionally, there may be ongoing requirements, such as annual reports and taxes, that you need to comply with to maintain your LLC’s good standing.”
It can also respond to requests to summarize the content of many related resources and answer business questions about accounting, starting a business, and more.
But where does ChatGPT get its information?
I asked it, and it gave me the following output:
“As an AI language model, my knowledge comes from the text that I was trained on, which includes a wide range of sources such as books, articles, and web pages. The training data is curated by OpenAI and consists of text from various domains and genres, such as news articles, academic papers, and online forums. Additionally, I can also access external knowledge sources and databases through APIs to answer questions and provide information.”
If that sounds vague, it is, which is why businesses should carefully review any information they receive from ChatGPT. It sometimes makes errors.
But, in general, ChatGPT can still be used to investigate basic information in business.
Helping With Brainstorming
Perhaps the most useful tool ChatGPT offers from a business perspective is its ability to brainstorm. It can compile lists on various topics, including blog titles, business names, and ideas for starting a company.
To demonstrate this ability, I gave ChatGPT the following query:
“Brainstorm 20 email subject lines for a 20% off promotion at a bookstore. Make it exciting.”
In return, it gave me the following output:
- “Get Your Reading Fix: 20% OFF All Books!”
- “Turn the Page on Savings: 20% Off!”
- “Book Worms Rejoice: 20% Discount!”
- “Literary Treat: 20% Off Storewide!”
- “Books Galore: 20% Off!”
- “Stack Up on Savings: 20% Off All Books!”
- “Bibliophile’s Bonus: 20% Off!”
- “The Ultimate Reader’s Sale: 20% Off!”
- “Page-Turning Savings: 20% Off All Books!”
- “A Storybook Deal: 20% Off!”
- “Lost in a Good Book? 20% Off All Books!”
- “In the Mood for a Good Read? 20% Off!”
- “Turn the Corner on Savings: 20% Off!”
- “Book Lovers Unite: 20% Off!”
- “20% Off All Books — Your Next Adventure Awaits!”
- “Books, Books, Books: 20% Off!”
- “20% Off — A Chapter in Savings!”
- “A Sale for the Ages: 20% Off All Books!”
- “Read Your Way to Savings: 20% Off!”
- “20% Off — A Book Lover’s Dream Come True!”
Pretty neat, right? ChatGPT can also brainstorm more abstract topics. I asked it to brainstorm a list of 20 product names for a “Star Wars”-themed hot chocolate brand, and it gave me the following output.
- Jedi Java
- Darth Delight
- The Dark Side Cocoa
- Galactic Gourmet
- Rebel Roast
- Empire Espresso
- Yoda’s Yum
- Sith Sipper
- Space Cocoa
- Jedi Jolt
- The Force Brew
- Hoth Hot Chocolate
- Wookiee Warmth
- The Last Jedi Latte
- Chewbacca Cider
- Princess Leia’s Cocoa
- The Millennium Mocha
- Death Star Delight
- Rebel’s Reserve
- Stormtrooper Spice
ChatGPT can be a great resource for getting unstuck if you’ve reached an impasse in your creative process. While some of its suggestions can be a little odd (please see “Wookiee Warmth” for an example), many of its suggestions can be quite useful if you are in a rut.
If you’re struggling to reword a paragraph or just want to draw inspiration from another perspective on a piece you are writing, ChatGPT can help. Its rewording feature can take original text and paraphrase it effectively.
I asked ChatGPT to reword the following paragraph from one of our blogs.
“What is the lifetime value of a customer — and how can you increase it? When entrepreneurs are just starting, they focus on acquiring customers to make a sale — period. But to grow your business and thrive in the long term, you need to set your sights past that first sale and far into the future; you need to start tracking your customers’ lifetime value (LTV) and determine what’s a good LTV for your business. If you don’t know how to get started, we’re here to help.”
In response, ChatGPT gave me the following output:
“Unlock the secret to skyrocket your business success by discovering the lifetime value of your customers! As a budding entrepreneur, it’s natural to focus solely on acquiring new customers and making that initial sale. But if you’re looking to scale and thrive long-term, it’s time to set your sights beyond that first transaction and delve deep into the future potential of each customer. The key to doing this lies in tracking their lifetime value (LTV) and determining what constitutes a winning LTV for your unique business. And the best part? We’re here to guide you every step of the way!”
I then asked ChatGPT to rewrite the same paragraph in a formal style and received this:
“The calculation of a customer’s lifetime value is a crucial aspect of running a successful business. While the primary objective for new entrepreneurs is often to simply acquire customers and make sales, it is important to consider the long-term prospects of the business. One effective way to achieve this is by tracking the lifetime value of each customer and determining what constitutes a favorable value for your specific business model. If you require assistance with this process, we are available to offer guidance and support.”
I was even able to ask it to rewrite the paragraph with a variety of other criteria. Among other things, I asked ChatGPT to rewrite the paragraph in Old English, to rewrite it using Southern idioms, and to rewrite it using British idioms. It completed these tasks with varying success levels, but I enjoyed playing around with it.
ChatGPT can benefit companies in many other ways. We encourage giving it some fun queries and objectives to learn more about it and how small businesses can use ChatGPT.
If you’re interested in hearing more of our business insights, you can fill out the form below to request your free copy of our founder’s book, “The Ultimate Guide to Newsletters.”