AI and Personalization Demand Connection
Exploring the profound insights gained from firsthand experiences in the dynamic intersection of AI and Marketing, where true personalization unfolds.
My Interesting Conversations
5 Things To Share
Insights Video - Demystifying AI for Executives: Prioritizing Strategic Opportunities
Free Webinar Invitation: Beyond the Hype: Applying AI to Personalize Marketing
1. My Interesting Conversations
Personalization requires a pipeline that can feed ongoing information, or at least as much as possible, and as relevant as possible, directly from the customer.
That's why heavily used apps, such as Spotify, Uber, Google, etc., can build up their information arsenals so quickly. Their volume of interaction with each customer is enormous. So, the battle is on for more companies, especially service-based ones, to create more "tethers" to their customers.
For most sectors, this is not easy.
This week I had a couple of discussions with Property and Casualty insurance companies in different stages of pursuing their personalization strategies.
One has tried to get customers to put a gizmo in their cars to track their driving so they can get lower rates. Those who have enrolled not only provide a rich feed of driving, location, and other telematic information to the insurer, but they also track their activity on an app, often turning it into a gamified experience. Sometimes competing with family members for the best scores (implying safest driving and lowest rates).
The use of the app also provides a way to reach those customers, as they get notifications, which could include special offers for partner services and other engagement stimuli, which especially ramp up as it gets closer to their renewal date.
Another has built a partnership with a home security company where the insurer resells their services for an insurance discount, but the customer agrees to let the insurer have access to the information.
This is not as thick a tether as the car tracker, but it does provide information on how the customer is managing home security and deals with incidents as they arise. They learn the presence of pets and third-parties who may work in the house.
It gives the insurer the opportunity to send personalized tips and offers for services that can improve readiness, especially for weather events, and for buy-ups on cyber security, for example.
While all of this comes with a dash of potential creepiness, both companies have negligible unsubscribe rates, and hardly any calls to inquire about "how they knew" something. Cross-sell rates continue to grow, and renewal rates have run higher than before.
The added services, which drive more preventive behavior, have allowed them to keep rates down for those customers in an environment of escalating claims costs.
What's clear to me is not only that one can create deeper connections to customers, even in seemingly low involvement categories such as insurance, but also the need to think about personalization potential in tiers.
There will be those who engage, go all in, and heavily share information. And then those at varying levels below that. So a personalization strategy not only depends on what you know about someone but also the degree of knowledge and connection you have.
Both companies have separate "pods" who focus just on those highly engaged customers, managing them for maximum connection and growth. For less engaged segments, it's more business-as-usual, but always trying to find new customers who might engage or to test other ways of getting new connections.
These are strategies built on a desire for connection, engagement, and personalization.
What's yours?
2. 5 Things To Share
Looking back at the social role played by data before the digital revolution can help organizations understand how data is revolutionizing work. Here is an interesting read from Fast Company(tag) on how digital technology transforms the constitutive links between data and society and more: https://tinyurl.com/mtn2rsxm #Data #DigitalTransformation
Brands that have successfully adapted to a cookie-less future have seen their #digital #marketing performance improve by 10% in the case of mature enterprises and up to 100% for small and medium-sized businesses. Boston Consulting Group (BCG)(tag) shares a massive opportunity for leaders: https://tinyurl.com/437sumts
Adopting a hybrid edge-to-cloud approach and optimizing resources appropriately can help clinicians provide exceptional patient care. How to maximize #AI deployment value in #healthcare via HealthTech(tag): https://tinyurl.com/3tb2m93u #HealthTech
In case you missed it: subscribe to my new newsletter Personalize! Prompts from the Frontlines on Substack(tag) here:
AI's potential in customer service extends far beyond basic automation—from creating training modules to internal tech support and more, here are practical applications for business leaders to consider, via Forbes(tag): https://tinyurl.com/2racypwb #CX
3. Insights Video: How Executives Can Really Bring AI Into Their Businesses
4. Free Webinar Invitation: Beyond the Hype: Applying AI to Personalize Marketing
Next Friday, I’m excited to invite you to a special free webinar celebrating the launch of Personalize Academy.
What You’ll Learn:
AI-Driven Personalization: How AI can unlock growth opportunities and drive personalization in your business.
Real-World Applications: Case studies of AI-driven marketing personalization
Strategic Insights: How to redesign your marketing strategy to stay ahead of competitors and create a strategic advantage.
I’ll walk you through the methodology that underpins the Academy, and then we’ll have a live Q&A session, to help answer your questions on how to get started and implement these strategies in your own business.
Don’t miss this chance to learn from the best and revolutionize your marketing approach. Secure your spot now and stay ahead in the game!
12 noon Eastern, 21st June 2024
Register here: https://event.webinarjam.com/register/2/roz4kf8
So that's my third email!
You can reach out to me directly on the detail below, and I look forward to how we can learn together!
Thanks,
Dave
Contact Me:
I work with a range of companies, from large $5+bn enterprises who are trying to grasp the opportunities that AI offers, to marketing businesses who are bringing exciting innovative solutions to market.
You can reach me here:
LinkedIn: https://www.linkedin.com/in/daveedelman
Website: https://www.edelmanadvisoryservices.com/
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