CRM 3.0: Building an AI Driven Customer Datamart

Divertica can assit in building an AI-Driven Customer Datamart.

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Divertica’s leadership has worked with a broad range of marketing departments across many different industries.  A dynamic we have seen is that there is a consistent gap in the approach between Born-in-the-Cloud firms and other firms in terms of how they structure and use marketing analytics.  Many firms maintain a relatively static view of the customer with basic information such as demographics, psychographics, purchase history, …  The most advanced firm integrate large amounts of unstructured data and used advanced analytics to use this data to draw deeper predictive insights that drive real time action.

Divertica believes that Born in the Cloud companies are leaders in AI/ML driven customer datamarts for a reason: success in Digital requires individualized real-time interactions.  Examples of this include:

  • Facebook’s use of AI to understand unstructured data and user sentiment in order to tailor Newsfeeds to Individual users
  • Amazon running 400 Microservices as customers move from 1st to 2nd page of web site
  • Tesla’s self-driving car initiative
  • Alexa, Siri, Cortana
  • The graphic below shows a traditional view of the marketing datamart.  Most marketing datamarts combine internal information with demographic/psychographic information purchased from 3rd parties.  This yields a detailed but relatively static view of the customer.

The graphic below shows a traditional view of the marketing datamart.  Most marketing datamarts combine internal information with demographic/psychographic information purchased from 3rd parties.  This yields a detailed but relatively static view of the customer.

The graphic below shows the approach taken by advanced tech players.  The key difference is the use of real time unstructured information such as web traffic, web site interactions, etc.  Machine Learning and AI algorithms are used to convert this into analytically driven, predictive descriptors of the customer such as likelihood to buy in the next week.

 

The chart below shows how the difference in approach translates to actual marketing tactics. 

Tactic

Static Customer Datamart

AI-Driven Customer Datamart

Offers at Point of Sale

●    Based on segmentation into group derived from static variables and history

●    Top of mind offers from sales rep

●      Recommended based on real time assessment of customer including web traffic

●      Messaging can be tailored to customer specifics

Creative Approach

●      Versioning based on segmentation scheme

●      Micro-content assembled on demand to optimize for each individual customer

●      AI/ML provides deeper insight into key customer triggers

Direct Mail

●      Large mass mailings to drive top of the funnel

●      Use of Direct Mail in real time to drive close rate towards end buyer’s journey

Communications

●      Driven by large campaigns and segmentation

●      Tuned to individual customer behavior

Digital

●      Interaction driven by segmentation

●      Interaction driven by real-time customer analytics (Amazon runs 400 microservices going from 1st to 2nd page of website)

Divertica’s Methodology for Building an AI-Driven Customer Datamart

Divertica believes that Big Tech has already shown the power of Big Data and Analytics in terms of building competitive advantage.  This technology and approach can allow companies outside of tech to gain a first mover advantage over their competition.  The following is our approach:

  • Establish Key Business Objectives – Digital Conversion Rate, Preventative Maintenance, etc.
  • Identify existing data and data quality/reliability issues
  • Identify potential outside data sources to enrich existing data
  • Identify AI/ML approaches for producing actionable insight from data to achieve business objectives
  • Develop overall architectural approach
  • Develop execution plan and budget
  • Optional: run trial on limited scope (e.g. a single region(s), subsegment of customers, …)
  • Gain approval for full scale implementation

One of the key differences today is that a significant amount of heavy lifting has been done by cloud providers.  As a result, with our deep cloud expertise, Divertica can circumvent a significant amount of development that would have required a decade ago.

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