how A.I. is transforming the marketing Mix - Innovation assesment - Gartner Curve - ChatGPT - Open AI

1. (Open) A.I. & Marketing
From 4P’s to SAVEEE
Hugues L. Rey
14th of February 2023

2. How Marketing could exploit A.I. ?
G A R T N E R H Y P E C U R V E V S M A R K E T E E R N E E D S

3. Do you remember
Second Life ?

5. At its peak in 2006, Second Life had
a story on the cover of Business
Week, a 12-page spread in Wired,
and numerous blog posts about
brands like Coca-Cola, Scion and
even the NBA establishing in-
world presences.
Reuters, CNET, CNN and Wired also
set up virtual news bureaus, though
all …
but CNN killed off their in-
world coverage about a year
later.

8. Do you Zwift ?

9. Worldwide
Phygital
Integration

13. Open A.I.
Hype is
booming !

14. Get Out the
Hype
Mapping
Innovation
Through the
Gartner Curve
Gartner Hype Cycles are a graphic
representation of "the maturity and
adoption of technologies and
applications, and how they are
potentially relevant to solving real
business problems and exploiting new
opportunities"

15. From start up
to
mass adoption
Mapping
Innovation
Through the
Gartner Curve

16. Timing is everything

17. 2022 - Marketing & Advertising
Hype Curve

18. Multichannel
Marketing Hubs
(clouds) meet
Conversational
Marketing
(Plateau reached)
PLATEAU OF
PRODUCTIVITY

19. Influence,
Content
Creator,
and Advocacy
(Plateau < 2y)
SLOPE OF
ENLIGHTENMENT

20. Consumer
consent and
Preference
Management
(Plateau 2-5 y.)
TROUGH OF
DISILLUSIONMENT

21. Shoppable
Media
(Plateau 2-5 y.)
TROUGH OF
DISILLUSIONMENT

22. PEAK OF
INFLATED
EXPECTATIONS
Generative AI
(Plateau 2-5 y.)

23. Digital twin of a customer (DToC)
(Plateau 5-10 y.)
A digital twin of a
customer (DToC) is a
dynamic virtual
representation of a
customer that simulates
and learns to emulate and
anticipate behavior.
Customers can be
individuals, personas,
groups of people or
machines.
DToC gives marketers a
flexible approach to
anticipating a customer’s
state of mind
INNOVATION
TRIGGER

28. "Instead of using
technology to
automate
processes, think
about using
technology to
enhance human
interaction."
— Tony Zambito

29. Interacting With
Human
Acting as Human
Speech
Vision and Hearing
Natural Language
Processing
“Machine” Learning
- Recommendation

30. OpenAI is an AI
research and
deployment
company.
Our mission is to
ensure that
artificial general
intelligence
benefits all
of humanity

31. Why Marketing could need A.I. ?

34. The 5 “P” of A.I.
Helping to …
“Intelligent”
vs
Relevant
Planning: Building relevant strategies.
Production: Creating relevant content.
Personalization: Powering relevant consumer
experiences.
Promotion: Managing relevant cross-channel and cross-
device promotions.
Performance: Turning data into applicable insights

35. A.I. is everywhere …
But, what about consumer
perception ?

37. A.I. is moving
the 4P (Marketing Mix) to S.A.V.EEE

38. A.I. Is moving 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product Place
Price Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

39. A.I. Is moving Product to Service
in a Bespoke Offer
Product
Service x Product
= Bespoke Offer
1. Recommendation
2. New Features
3. Churn Prediction

40. Pivot 1

42. Pivot 2

44. A recommendation
system generates a
compiled list of items in
which a user might be
interested, in the
reciprocity of their
current selection of
item(s).
It expands users’
suggestions without any
disturbance or
monotony, and it does
not recommend items
that the user already
knows.
USE CASE 1

48. TensorFlow is an open-source deep- and machine-learning library with a Python API and backed by
Google. TensorFlow makes it easy for beginners and experts to create machine learning
models for desktop, mobile, web, and cloud.

49. USE CASE 2

50. By analyzing viewer
data – think 30
million “plays”, 4
million ratings, 3
million searches -
the company was
able to determine
that fans of the
original House of
Cards, which aired in
the UK, were also
watching movies
that starred Kevin
Spacey and were
directed by David
Fincher, who’s one
of the show’s
executive
producers.

51. Without seeing a single episode of House of Cards, Netflix
committed to two seasons of the show, or 26 episodes, bidding a
reported $100 million.
That’s $3.8 million per episode.
Give people what they want, when they want it, in the form they want it
in, at a reasonable price — and they'll more likely pay for it rather than
steal it."

52. Churn represents the percentage of lost customers in a given time range
Customer churn is a major threat to every streaming company.
Companies lose $1.6 trillion per year to churn1
USE CASE 3

53. Reach out in the
moment of max
impact to keep
customers hooked
and wanting more
/ Automate
resolutions to
customer service
issues / Engage in
an ongoing
conversation with
the customers
By analyzing churning customers, companies like
Netflix can start to pick up on profile attributes,
changes in viewing behavior, lifecycle, and customer
service contacts that are likely to lead to churn.
Companies can then preemptively intervene to try
and retain an at-risk customer who is demonstrating
similar behavior.
For instance, it could be a customer who has reached
out two times in a certain time frame with streaming
or downloading issues. Or, a person who has
abandoned all content that they have started in the
past four weeks without completing any title.

54. $6 billion on content this year
◦ If it just presented the most popular selections to everyone, many titles would remain unseen.
◦ Wasted content spend, Less time watching Netflix instead of other networks.
Take-rate on top personalized video recommendations was 3 to 4 times higher than the most popular
videos.
◦ Viewers were exposed to 4 times as many videos using personalized recommendations compared to a list of
the most popular titles.
Recommendations = surface niche titles that wouldn't find an audience on a traditional cable
network, but that its viewers love
◦ Save money on its content & maximize the value of inexpensive titles.
Recommendations lead to meaningful increases in overall engagement with the product (e.g.,
streaming hours) and lower subscription cancellations rates.
◦ Higher lifetime customer values and lower revenue volatility.
◦ Retention rates are already high enough that it takes a very meaningful improvement to make a retention
difference of even 0.1%.

56. Curated shopping is
one of the firm’s
most important
projects for the next
12 to 18 months, says
Zalando CEO Rubin
Ritter.
Hyper
Personalized
Relation

57. https://algorithms-tour.stitchfix.com/

58. https://avpwork.com/home/stitch-fix-data-science-keep-rates-retention-nps

61. A.I. Is moving Price to Value
Price
Value Based
Pricing
1. Dynamic Pricing
2. Yield Segmentation
3. Predictive &
Prescriptive buying
Paterns

62. Uber: Till 2017 - Prices go up to encourage more drivers to go
online. The increase in price is proportionate to demand

63. AI and machine learning are
helping pricing managers
capture more revenue and
profits by finding how what a
given customer is willing to
pay or optimizing price across
their customer and product
mix.

64. Fine-tuning price
segmentation
strategies with
insights gained from
AI is helping to
stabilize and
increase margins
and revenues today.

65. Surge Pricing Acceptation Rate
“One of the strongest predictors of whether or not you are going to
be sensitive to surge is how much battery you have left on your cell
phone,” Keith Chen, Uber’s head of economic research said.
In other words, you’re more likely to accept a surge-priced fare, regardless of the price, if your phone’s
about to die because you need a ride home immediately, and if your battery’s death is imminent, you
can’t afford to wait 15 minutes to see if the price drops down again.
Uber knows when its users’ phone batteries are running low because the app switches into power-saving
mode.
“And we absolutely don’t use that to kind of like push you a higher surge price, but it’s an interesting kind
of a psychological fact of human behavior,” Chen said.

67. AI is making it possible to create propensity models by persona, and they are invaluable for
predicting which customers will act on a bundling or pricing offer

68. AI is improving
Configure, Price,
Quote (CPQ)
effectiveness by
bringing greater
accuracy and control
to price
management and
price optimization,
which increases
margins, reduces
costs, and increases
profitable financial
performance.

70. Dynamic pricing: Retailers using artificial
intelligence to predict top price you'll pay
You could be paying more than others
Data used by pricing algorithms is gathered from seemingly benign sources such as loyalty cards and
even post codes. But it also increasingly incorporates prior behavior.
As with gambling, the house always wins
In the long run, consumers are likely to be the biggest losers, because dynamic pricing plays on our
desire to find that next bargain.
Moral and ethical questions
It has the potential to worsen social inequality, particularly as the determinations used by retail
algorithms are intentionally non-transparent
Algorithms to negotiate on your behalf
Products like Amazon's Echo or Google's Home are the first tangible versions of the quest to make
artificial intelligence butlers a common household feature. The goal is to persuade consumers that
they can save time and energy by delegating mundane tasks like ordering groceries or booking tickets
to these artificial agents.

71. NEGOTIATION TOOL
Source: https://www.theverge.com/2022/12/13/23505873/donotpay-negotiate-bills-ai-chatbot
Source: https://twitter.com/i/status/1602353465753309195
Launch of a new AI-powered chatbot that
can help people negotiate bills and cancel
subscriptions without having to deal with
customer service.
DoNotPay “the world’s first robot lawyer”:
AI chatbot that negotiate your bills

72. A.I. Is moving Place to Access to generate
a unique experience.
Place
Access x
(Learn + Apply)
= Experience
1. Last Mile
2. Ux Optimisation
3. Usage Suggestion
4. Machine / Human Collab

73. Physical
placement
Merchandising optimization: You
can leverage machine learning and
big data to optimize your online or
offline merchandising.
Shelf audit/analytics: Your
business can use videos, images,
or robots in the retail area to audit
and analyze your use of shelf
space.

74. Digital
Placement
Product Information Management:
Businesses manage and improve all
product information centrally to
improve product discoverability and
appeal. As a result, they
automatically modify and update the
product description, box description,
and all other related information.
Image tagging to improve product
discovery: You can leverage
machine vision to tag your images,
taking into account your users’
preferences and relevant context for
your products.

75. Video Commerce
- with embedded
products
shoppable by
inserting relevant
links and auto-
identify products

76. Useful
Usable
Used
The bot will let you know the current location of your driver and show you a picture of the license plate and
car model.

80. Kia had more
than 800
websites
where a
customer can
ask about
buying a car

81. What for ?
Better User
Experience
Improved
Customer Service
Data-driven
Product
Recommendations
Automated Lead
Generation and
Qualification
Rewarding
Customer Loyalty
Closing the Deals

82. CONSUMER BEHAVIOR
ANALYSIS/SUPPORT
è ChatGPT data collection: everything from customer interactions and
demographics to preferences and purchase history. The data will give you
valuable insights into consumer behavior and empower you to make data-
driven decisions for your brand and your marketing strategies.
è Enhanced Personalization: Recognize user interests and preferences means
that customers will have a more personalized, more human experience
è Increase customer loyalty and satisfaction: support 24/7, customers get the
answers they need without having to wait for regular business hours.
“In a way that feels like a more natural human
interaction, so it isn't as off-putting or frustrating
as speaking with other chatbots.”

83. LEAD GENERATION
Use ChatGPT as a widget,
on a landing page, or
through a website
integration to engage with
web visitors and collect
their information
1
2
3

87. Automated call centers are expected to
become a reality in 2021 as AI is leading the
revolution of chatbots.
The reason being, AI along with national
language processing will make it possible for
chatbots to be “intelligent” enough to assist
customers like human beings.

88. Marketeer vs Consumer (Source: Pega)

89. In which situations would
you be comfortable with a
company using AI to give
you better customer
service ? (Source: Pega)

91. Dog or Bagel ?

95. Useful ?
Usable ?
Used ?
… And
additionaly
Meaningful ?
Ethical ?

96. ASOS Visual Search
Monetize the ‘discovery’
phase of the shopping
journey
Turns the user’s
smartphone camera into a
discovery tool, allowing
them to take a picture of a
product. By identifying the
shape, color, and pattern of
the object, ASOS’ AI
technology can then cross-
reference its own inventory
of products and serve up the
most relevant results.
Visual Search Capability: Businesses can leverage machine
vision to enable their customers to search for products by image or
video to immediately reach their desired products. For example,
Flipkart, one of India’s largest online retailers, uses visual search.

97. TheTake uses AI to
identify products,
locations in video

98. Sephora Visual Artist product à
“try on” cosmetic products
Powered by Modiface AI
technology, the Visual Artist can
map and identify facial
features, then use augmented
reality to “apply” the user’s
selected product and shade.
Moreover, it can automatically
apply suggested shades based
on the consumer’s skin tone.

100. A.I. Is moving Promotion to Engagement,
Entertainment, Education
Promotion
Engage, Entertain,
Educate = Unique
Relationship
1. Content Production
2. Dynamic Creation
3. Insights Automation
4. Micro-Targeting
5. Channel Selection

101. PEAK OF
INFLATED
EXPECTATIONS
Generative AI
(Plateau 2-5 y.)

102. Generative
A.I. is more
than
ChatGPT
PEAK OF
INFLATED
EXPECTATIONS

103. PEAK OF
INFLATED
EXPECTATIONS

104. RankBrain is an artificial
intelligence system that
is designed to
understand how people
search and why they’re
searching (or their
intent when searching).
It does this through a
mathematical process
and advanced (and
evolving) understanding
of written language
semantics that’s
intended to help
RankBrain ultimately
“understand” searchers
on a deeper level than
simply matching
keywords

105. Improve SEO/keywords analysis
Generative Artificial Intelligences are capable to propose improvements
based on a given input. Therefore, they are also able to:
è write Meta description
è Categorizing search intent on a range of keywords
è Analyse keyword difficulty
è search volume for picking best keyword
Source: https://seo.ai/blog/chatgpt-seo-examples-and-use-cases

106. ChatGPT ne voit
pas la SERP mais
il connait les
intentions de
recherche! 😍
“Écris et classe les mots clés de la
thématique “pull d’hiver” selon si la
recherche est navigationelle,
commerciale, informationnelle et
transactionnelle sous forme de
tableau”

107. Content generation ai
Story writer/Content Marketing: Chat GPT is suited
to help tech writers create stellar content quickly
and painlessly
Writing product descriptions for E-commerce
Provide clear explanations – Useful to advertiser to
explain the working/utility of a product - explain
ideas in simple words
https://www.youtube.com/watch?v=JUmPyxymi4U

108. 20 % of all business-
oriented content is
generated by machines
(Gartner)
Client reports
Product descriptions
Campaign summaries
TV programming
Announcements Ratings
analysis,
Online content for clients
Social media updates
…
Wordsmith, a software platform lets you
create sophisticated templates that turn
raw data into unique pieces of writing
about that data. Wordsmith is a natural
language generation (NLG) platform.

110. Did a Human or
a Computer
Write This?
MARCH 7, 2015

111. Did a Human or
a Computer
Write This?
MARCH 7, 2015

112. Optimize
marketing
communication
Just a few years ago, most
messages to customers were
handcrafted for specific macro-
segments. Today companies
like Phrasee suggest personalized
messages to ensure that
customers receive messages they
prefer to read. For example, Dell
has increased its page visits by
22% by introducing Persado’s AI-
powered marketing tools.

113. Contextual Advertising and Custom Algorithms
By supplying their first-party data, advertisers can train the algorithm to deliver more highly personalized ads and
improve campaign optimization.
2023

117. Prototyping – Burberry x British Airways

118. Dall.e – Prompts 1
un homme et une femme qui s'embrassent tout en marchant sur un trottoir encombré de
passants, devant une terrasse de café

119. Dall.e – Prompts 2
En 1950, à Paris, Devant l'hotel de Ville, un homme et une femme qui s'embrassent tout en
marchant sur un trottoir encombré de passants, devant une terrasse de café

121. Le Baiser de l'hôtel de ville est une
célèbre photographie en noir et
blanc du photographe français Robert
Doisneau. Prise en 1950 à proximité
de l'hôtel de ville de Paris, elle
représente un homme et une femme
qui s'embrassent tout en marchant
sur un trottoir encombré de passants,
devant une terrasse de café.

123. A.I. Men – The
Young Pope:
The Papal Artificial
Intelligence

124. Input
People are
blaspheming …
(Collect)
Creative and Data Team role
NPL
Connect to verset
Generate
Possible
answer
Display
individual
Answer

126. Let’s Meet Lucy
an invaluable
member of the
marketing team
Lucy can
à hunt down facts about a
potential market
à pull together customer profiles
from social media
à draw up media models in
moments.
She performs previously time-
consuming tasks in an instant,
empowering marketers to do
much more in far less time, and
the more she does the more she
learns, growing and developing
according to a campaign’s needs.

127. Automating
digital
advertising’s
“dirty jobs”

128. Planning is A.I.
Compatible …
What about
Strategy ?

129. Phygital vs Transhuman
131

130. Final Conclusion
Wrap Up

131. A.I. empowers
each stage of
the consumer
decision
journey

132. Barriers to
Marketing
AI
Adoption
Source: 2021 State of Marketing AI Report

133. A.I. is already integrated in
Marketing
Consumer is not
completely perceiving that
reality
à We (Human) + A.I. = 3
à Let’s Human
Concentrate on Strategy
and Creative Big Idea
à Test now is a must – Full
productivity is about 10
Years

134. hugues.rey@havasmg.com
Hugues.rey@ulb.be
@huguesrey
+ 32 496 26 06 88
www.huguesrey.com
THANK YOU
FOR
YOUR ATTENTION !