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Smart I.R.
Rules-based analytics vs. AI-powered
Identify customers who are at risk of defecting:
Evaluate campaign effectiveness:
Find your best customers:
Select segments that will be the most responsive to upcoming campaigns:
Source: SAS.com
Goals for A.I. include:
“Decision fatigue and cognitive fatigue are the opposite of flow and seamlessness. We are making too many decisions that tax our cognitive bank account. We dole it out on important things and not on things that are already operating well.”
Source: Susan Menke, Humanizing Loyalty
26 September 2018
Customer
retention
Image classification
Meaningful compression
Structure discovery
Identify key patterns in purchasing
ML can spot credit card fraud while it is happening: ML can build predictive models of credit card transations based on their likelihood of being fraudulent and the system can compare real-time transactions against this model.
Classification
Dimensionality reduction
Feature Elicitation
Identity fraud detection
Big Data visualization
Advertizing popularity prediction
Supervised Learning
“Predicting customer’s future behaviors and needs often turns on the ability to parse their emotions, more than just their past purchases, and create a shared bond."
Transform Customer Experience by Harnessing the Power of AI in CRM
MIT Technology Review
"The wide range of machine-learning (ML) models learns from what is collected to unearth and match patterns, as well as act on correlations that would otherwise remain hidden. AI models embedded within the CRM system’s personalization engine take into account the catalog that any given shopper sees and the context on how the merchant is engaging with that shopper, and then ranks every product for that buyer in terms of relevance from search results, making the most targeted and personalized results ever.”
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Transform Customer Experience by Harnessing the Power of AI in CRM
MIT Technology Review
“Unlike traditional customer-facing platforms that deliver a fragmented view of the buyer, an intelligent platform presents a single aggregated view of customer data. The built-in intelligence layer helps businesses spot trends, anticipate needs, and respond more proactively. With that complete picture, for example, a business knows exactly when the customer last purchased a product, what that product was, whether he or she had a problem, and, if so, exactly how it was resolved.”
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Transform Customer Experience by Harnessing the Power of AI in CRM
MIT Technology Review
In 2015, Fanatics sent about 3.5 billion messages.
When a team wins the Super Bowl, Fanatics can have 350 products live with a press of a button three seconds after the game. Fanatics built scripts that search customer data to display a fan's favorite teams, pulling in real-time scores and stats from vendor feeds, and personalized branding using partner IDs.
Transform Customer Experience by Harnessing the Power of AI in CRM
MIT Technology Review
Recommender systems
Unsupervised Learning
Customer worth
Identify customers and their patron history that is contributing signficantly to accounts/businesses revenue.
Looks at the entire base of customers that you have and finds specific buckets that are drawn a specific way, that have certain characteristics in common - characteristics that could be considered a 'persona'.
Much more effective than telling the software to find a group of people or personas that have a certain characteristic in mind.
Regression
Clustering
Naive
Somewhat informed
Targeted marketing
A.I. powered
Data powered
I read an article somewhere that said Monday was the best time to get higher click-thru rates. Let's wait until then.
3 p.m., plenty of time to get it out.
We know the time zones of our subscribers. We'll send messages out during business hours for each individual.
Let the system decide what the best time for each individual based on all the data the IR has, i.e., let the A.I. software solve for the goal.
Market forecasting
Population growth prediction
Machine Learning
Cashier theft
Customer segmentation
Estimating life expectancy
Game A.I.
Real-time decisions
Reinforcement learning
Skill acquisition
Robot navigation
Learning tasks
What should happen?
PRESCRIPTIVE
ANALYTICS
Having discovered a segment that almost always responds to a particular campaign by adding an item to the basket but not buying it, prescriptive analytics would suggest the most likely way to nudge those visitors to take the next step. In some cases, this nudge could be done automatically--in real time.
A.I. can:
AI models can be used to build landscapes for each individual "bid unit", which could be a keyword. The AI will identify the point of diminishing returns and stay away from there.
Using algorithms to optimize such things as TGRO, room rates, labor optimization. AI can be used to recommend optimal marketing budgets.
What could happen?
Based on how customers have responded to a campaign, predictive analytics will identify segments that respond in like ways. It will identify what attributes are important in defining the segment, then recognize any visitor that matches this segment, as well as predict the outcome of that visitor's interactions.
Predictive analytics uses ML and other AI to recognize patterns, match events to the patterns and thereby predict the most likely next events.
PREDICTIVE
ANALYTICS
Using algorithms and data to
Predict which customers are most likely to use a particular marketing offer.
Why did it happen?
Questions like "Why is revenue so low this week?" leads to "Is it low for everyone or just some groups?", which might lead to "Has it been low all week or just for a few days?" and "Is it getting better or worse?"
DIAGNOSTIC
ANALYTICS
Mining data to determine what caused a spike in the casino's web traffic over the past month.
What happened?
DESCRIPTIVE
ANALYTICS
Using Google Analytics to track a casino's website traffic, such as page views and numbers of visitors.
A.I. leaders
As consumers scroll up and down the company’s shopping portal for their favourite products, Tmall Smart Selection, an AI-powered recommendation algorithm will, in no small measure, help buyers to make a decision.
Through parsing inputs ranging from brand reviews to buyers’ behaviour, Tmall Smart Selection predicts potential successful products and reminds retailers to increase inventory accordingly.
AI-powered customer service chatbot Dian Xiaomi can understand more than 90 per cent of customer enquiries and serve almost 3.5 million users a day.
In the more advanced “cloud” version made available this year, the service also features capability to understand customers’ emotion through text analysis and alert customer service staff for priority handling
A list of 2 billion people and what they like, what they think, and who they know.
Facebook uses deep neural networks to decide which ads to show to which users. Facebook tasks machines to find out as much as they can about us, and to cluster us together in the most insightful ways when serving us ads.
Facebook has even decided that the task of deciding which processes can be improved by AI and Deep Learning can be handled by machines. A system called Flow has been implemented which uses Deep Learning analysis to run simulations of 300,000 machine learning models every month, to allow engineers to test ideas and pinpoint opportunities for efficiency.
DeepText
A deep learning-based text understanding engine that can understand with near-human accuracy the textual content of several thousands of posts per second, in over 20 different languages.
Alibaba will spend more than US$15 billion to open seven research labs as part of the project. These will focus on areas that include machine learning, network security, visual computing and natural language processing.
Neural networks analyze the relationship between words to understand how their meaning changes depending on other words around them.
Alibaba’s City Brain AI can now see every car in the city of Hangzhou. The system also constantly monitors video footage of traffic, looking out for signs of collisions or accidents in order to alert the police
Google’s online real-time language translation service will now understand nuances of human speech in any language, allowing more accurate translation between human languages.
The new recommendation system is based on deep neural network technology, which means it can find patterns automatically and keep learning and improving as it goes.
The AI engaged in reinforcement learning, playing against itself until it could anticipate its own moves and how those moves would affect the game's outcome. In the first three days AlphaGo Zero played 4.9 million games against itself in quick succession. It appeared to develop the skills required to beat top humans within just a few days, whereas the earlier AlphaGo took months of training to achieve the same level.
A.I.-First
Core ML lets developers integrate a broad variety of ML models inside their apps, which means ML models can run on the device so data doesn't need to leave the device to be analyzed, which obviously makes an app much more functional for the user.
Taking personalization to the next level, AI also allows for predicting the kinds of purchases consumers are going to make before they even know it.
4 1
35%
With advanced recommendation-AI, Amazon creates more than 35% of its total revenues with personalized shopping recommendations.
Google home with voice assistant
Voice-to-visual
Create ML
Anticipatory shipping
Once users invoke the Kayak skill on Alexa devices (“Alexa ask Kayak . . .”), it walks you through a dialog wizard about location, dates, ratings and pricing. It can only discuss one hotel at a time and is best right now for booking specific hotels, rather than choosing a hotel from among many.
Duplex
A human-sounding robot having a conversation with a person who couldn’t even tell that they were talking to a robot.
The government announced that China’s first wave of open AI platforms will rely on Baidu for autonomous vehicles, Alibaba Cloud for smart cities, and Tencent for intelligent healthcare.
As part of the on-boarding process, Netflix asks new users to rate their interest in movie genres and rate any movies they’ve already seen. This helps users discover new movies and TV shows they’ll enjoy, which is integral to Netflix’s success.
It is better to have a simpler model running on a large set of data rather than a more sophisticated model utilizing a limited set of data.
Results
"I can resist everything, except temptation."
-Oscar Wilde
Predictive customer service
Chat bots
Mimic human intelligence by interpreting a consumer’s queries and potentially complete an order for them.
Re- targeting
Marketing automation
Web & App personalization
“Technology has changed marketing and market research into something less like golf and more like a multi-player first-person-shooter game. Crouched behind a hut, the stealthy marketers, dressed in business-casual camouflage, assess their weapons for sending outbound messages. Email campaigns, events, blogging, tweeting, PR, ebooks, white papers, apps, banner ads, Google Ad Words, social media outreach, search engine optimization. The brave marketers rise up and blast away, using weapons not to kill consumers but to attract them to their sites, to their offers, to their communities. If the weapons work, you get incoming traffic.”
Dan Woods
How Real-time Marketing Technology Can Transform Your Business
Lead scoring
Genting can use AI to test thousands or even millions of designs (be it text, icon, image or button color changes) and see a 40% to 50% increase in conversions.
Guliz Sicotte, head of product design and content for Magento, says to prompt a customer purchase, brands must create online experiences that focus on four principal characteristics—they must be personalized, reflective, transparent, and use pleasing aesthetics.
Chew, Christie. (2018). The Art and Science Behind Every “Add to Cart.”
Cognitive styles dimensions “might include impulsive (makes decisions quickly) versus deliberative (explores options in depth before making a decision), visual (prefers images) versus verbal (prefers text and numbers), or analytic (wants all details) versus holistic (just the bottom line).
AI is able to dynamically change the look and feel of a website in real time, as travelers engage with it, to dramatically boost conversions, whether it’s to sell a hotel room, an upgrade, a retail item, or a special offer. And it can do this where Genting needs it most -- for return visitors or customers enrolled in loyalty programs.
“’Morphing’ involves automatically matching the basic ‘look and feel’ of a website, not just the content, to cognitive styles.”
Chew, Christie. (2018). The Art and Science Behind Every “Add to Cart.”
Morphing is one of the ways a brand can hyper-personalize the customer shopping experience.
Chew, Christie. (2018). The Art and Science Behind Every “Add to Cart.”
1-1 dynamic content emails
Ad targeting
Dynamic pricing
AI-generated content
companies should have both a single view of their customer as well as a single view of their media.
“They’re also able to get more accurate data about an ad’s cost per impression (CPM, or the cost for each 1,000 people who see the ad), allowing for more relevant and cost-efficient targeting.”
Source: Allie Shaw, AI could save television advertising with advanced personalization
“Thanks to programmatic TV advertising, advertisers can know how many people have viewed their ads, where these viewers are located, and what their viewing history looks like—with information updating by the minute.”
Source: Allie Shaw, AI could save television advertising with advanced personalization
“Essentially, your TV can learn about your habits in the way your web browser already does, allowing advertisers to present you with ads based on that information—so you’ll see fewer repetitive ads that you don’t care about. This means you and your neighbors may all be watching the premiere of The Walking Dead but seeing different ads based on your unique interests."
Source: Allie Shaw, AI could save television advertising with advanced personalization
“In short, AI programs draw from data pools to make decisions about where and when to buy or sell ad space according to demographic and cost-versus-benefit information.
Source: Allie Shaw, AI could save television advertising with advanced personalization
AI can't write a political opinion column or a blog post on industry-specific best practice advice, but there are certain areas where AI generated content can be useful and help draw visitors to your site, says Huguesrey. AI content writing programs like Wordsmith can pick elements from a dataset and structure a “human sounding” article.
Predictive analytics
Programmatic media bidding
Propensity modeling
Machine learning algorithms can build propensity models that can predict the likelihood of a given customer to convert, the price at which a customer is likely to convert, and/or what customers are most likely to turn into repeat customers.
Source: Huguesrey A.I. for marketers across the customer lifecycle
POSITION
“Why?”
“Does”
“I”
“Make”
“Who?”
“New”,
Nearly 20% of all voice search queries are triggered by only 25 keywords
“Good”
“Free”
“Does”
“Types”
“Recipe”
“List”
“Homes”
“Define”
Source: seoClarity The Next Generation of Search: Voice
“When you type a query into a search engine, hundreds of options pop up. It’s different with voice. When people engage in a voice search using a digital assistant, roughly 40 percent of the spoken responses today (and some say as many as 80%) are derived from ‘featured snippet’ within the search results. In search speak, that’s position zero. When you are that featured snippet in an organic search, that’s what the assistant is going to default to as the spoken response. Siri, Google, Cortana and Alexa don’t respond with the other ten things that are a possibility on that search page. Just the one.”
Source: seoClarity
Source: seoClarity
Source: Voice search isn’t the next big disrupter, conversational AI Is
Voice search
In her article Voice search isn’t the next big disrupter, conversational AI Is, Christi Olson explains the importance of being what she calls ‘position zero’ in the search rankings.
“Not only is the Google Answer box at the very first spot, above standard organic results, but also has a unique presentation format that immediately sets it apart from the remainder of the page. This instantly increases the credibility and authority of the brand providing the answer to the user’s query. Consequently, Google’s Answer Box may be the only search result viewed by the user,” says seoClarity... Perhaps more importantly, it is the only answer read in response to a voice search."
Source: seoClarity The Next Generation of Search: Voice
“A brand that nails voice search can leverage big gains in organic traffic with high purchase intent thanks to increased voice search traffic due to AI driven virtual personal assistants."
Source: Huguesrey, A.I. for marketers across the customer lifecycle.
of creatives are using AI in photo + design retouching,
40%
Smart content creation
Source: The Magic of AI in a content-driven world. Using AI to create content faster.
Adobe Enterprise Content Team
Consumers expect personalized experiences
"An IDC survey cites that 85% of marketing professionals feel under pressure to create assets and deliver more campaigns, more quickly. In fact, over 2/3rds of respondents are creating over ten times more assets to support additional channels. This increased level of complexity is driving volume and associated costs.”
Source: The Magic of AI in a content-driven world. Using AI to create content faster .
Adobe Enterprise Content Team
“AI can help you create more relevant content and more engaging experiences across the customer journey at the speed your customers expect. On the creative side, AI can speed up all kinds of tedious tasks, from identifying and organizing assets to adjusting and refining for specific channels.”
Source: The Magic of AI in a content-driven world. Using AI to create content faster .
Adobe Enterprise Content Team
AI offers capabilities for marketers that range from choosing the best image for a campaign or optimizing the content in a creative based on real-time user interactions. For example, from a content creation perspective, this allows the ability to understand the focal—or sellable—point of hero images, and then to auto-crop them for best performance based on an understanding of millions of assets with similar meta-data.
According to IDC, marketers report that 1/3rd marketing assets go unused or underutilized.
Source: The Magic of AI in a content-driven world. Using AI to create content faster
Adobe Enterprise Content Team
Using AI, marketers could train the AI and ml models to create their own unique auto tags. This includes identifying brand characteristics like the company logo, so that designers adhere to specific brand standards, or training it to identify a company’s products so that they can be tagged in pictures on social media, which helps identify true reach.
A marketer might have a picture of a young girl on a beach under a clear blue sky, which could be tagged with keywords like 'green fields', 'girl', 'sundress', 'blue sky', or even a place.. The AI technology has learned to automatically identify what is in a photo. And not just an object like a car or a girl, but the concept of the photo, including context, quality, and style.
Advances in AI and machine learning are empowering marketing teams to streamline and accelerate video production workflows and create more targeted content, in less time and with fewer resources.
Editing via algorithm
“In this future of data-driven dynamic content, viewers' information is siphoned to AI that determines aspects of the video based on their data,”
Cimaglia sees advertising being tailored towards individuals. “The options for customization extend beyond user data, too. If it's raining outside, it could be raining in the video,” easily done by the agency plugging in a geolocating weather script.
Matt Cimaglia, The Future of Video Advertising is Artificial Intelligence
AI "algorithms can cut a different video ad in milliseconds. Instead of taking one day to edit one video, it could compile hundreds of videos, each slightly different and tailored to specific viewers based on their user data... As the video analytics flows in, the algorithm can edit the video in real-time, too—instead of waiting a week to analyze and act on viewer behavior, the algorithm can perform instantaneous A/B tests, optimizing the company's investment in a day."
Matt Cimaglia, The Future of Video Advertising is Artificial Intelligence
15 Applications of Artificial Intelligence in Marketing
Huguesrey .com
“Phil Gaughran, U.S. chief integration officer at agency McGarryBowen, made a bold prediction: By 2022, he said, 80% of the advertising process will be automated, ‘a threshold that will never be surpassed.’” “The remaining 20%, will comprise such elements as brand value, storytelling, and other more experiential tactics that will always need a human driver.”
Source: Future of Advertising: Automated, Personalized, and Measurable
New way
Old way
“Roku, the connected TV hardware company, is quietly building a large software business, driven mostly by advertising revenue... Roku typically doesn't sell advertising through an open exchange (open bidding system), like some of the big tech companies do, but it does use programmatic infrastructure to digitally target those ads—a tactic commonly referred to as ‘programmatic direct’ or ‘programmatic reserved.’”
Source: The Next Big TV Tech Platform: Roku
Marketers can now match their own audience data with Roku’s in a way that provides an unprecedented degree of targeting granularity for those eager to engage with the streaming provider’s 27 million viewers.”
News Corp has unveiled its latest digital offering News IQ, a ‘brand safe’ advertising platform boasting an audience of over 140 million in the US alone that features all its first-party data insights for the first time.
Source: News Corp debuts new ad platform News IQ promising premium first party data insights and brand safety assurances
“In short, the future of the advertising business is being moved to technology companies managing ad networks and media companies making branded content—that is, away from the ad agencies.”
Source: The Atlantic. Where Did All the Advertising Jobs Go?
NBC recently “made its full portfolio of broadcast and cable television available to advertisers through a DSP, essentially automating ad buying for its TV market.”
Source: CMO. Experts Weight in On the Future of Advertising.
Wanted criminals were arrested at the Qindao Beer Festival, after being pinned by facial recognition software checkpoints at entrances.
25
Attention Brow furrow Brow raise Chin raise Eye closure
Affectiva’s technology has the potential to monetize what being called an ‘Emotion Economy’. “Tech gurus have for some time been predicting the Internet of Things, the wiring together of all our devices to create ‘ambient intelligence’—an unseen fog of digital knowingness. Emotion could be a part of this IoT.
Raffi Khatchadourian
We Know How You Feel
Sony "researchers anticipated games that build emotional maps of players, combining data from sensors and from social media to create ‘almost dangerous kinds of interactivity,’” “There were patents for emotion-sensing vending machines, and for A.T.M.s that would understand if users were ‘in a relaxed mood,’ and receptive to advertising.”
Raffi Khatchadourian
We Know How You Feel
“Since the 1990s a small number of researchers have been working to give computers the capacity to read our feelings and react, in ways that have come to seem startlingly human." Researchers “have trained computers to identify deep patterns in vocal pitch, rhythm, and intensity; their software can scan a conversation between a woman and a child and determine if the woman is a mother, whether she is looking the child in the eye, whether she is angry or frustrated or joyful.”
Raffi Khatchadourian
We Know How You Feel,
Affectiva develops “cutting-edge AI technologies that apply machine learning, deep learning, and data science to bring new levels of emotional intelligence to AI.”
Raffi Khatchadourian
We Know How You Feel,
Inner brow raise Lip corner depressor Lip press Lip pucker Lip suck
Mouth open Nose wrinkle Smile Smirk Upper lip raise
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.
Capacity Planner enables you to optimize your current infrastructure as well as to model future change. Use powerful scenario modelling to correlate application and infrastructure data together. Learn which applications are driving your infrastructure versus which application processes are consuming too much capacity.
A smart city attempts to increase contact between its citizens and the government. A smart casino should be blostering communication between employer and employee.
Having determined the root cause of a problem, AI can then provide data-based recommendations on actions to boost employee engagement levels and retain them for good.
Recommendations
Multi-sensored smart devices can monitor perishable goods in storage and in transit and relay location, temperature, and humidity data to the cloud. This provides real-time information on the precise conditions of each unit of goods and thus enables corrective actions to reduce waste and save money.”
Shay Adar, Smart Food Management Utilizes IoT to reduce Cost, Waste and Pollution
Because cold chain monitoring occurs in real-time, corrective action can be taken immediately, which could, potentially, reduce spoilage and waste. Once an IR knows that the goods it is expecting will most likely arrive spoiled, the goods can be rejected and replacements can be found.
Shay Adar, Smart Food Management Utilizes IoT to reduce Cost, Waste and Pollution
The perishability of a product can also be tracked. A sensored cold chain adds precision into the supply chain. “By placing sensors on each pallet of food, the differences in environment conditions between pallets in the same shipment can be measured and collected. This data can then be used to calculate the remaining shelf-life of the product. With this information, the traditional FIFO (First In First Out) inventory system can be replaced with the more effective FEFO (First Expired First Out),”
Shay Adar, Smart Food Management Utilizes IoT to reduce Cost, Waste and Pollution
Image
Sound
Text
Labor
BI
CX