Optimove’s Take on AI

This month, Loyalty360 sat down with Pini Yakuel, CEO and Co-Founder of Optimove, to discuss artificial intelligence, how it can be utilized, and where the digital landscape is going within the next few years.

-What is the firm hearing from clients/consumers in terms of AI’s incorporation into modern day marketing?

Our clients generally report that Optimove’s technology enabled a much deeper understanding of the most effective ways to connect with their customers. Combining psychographic clustering, transactional history and behavioral components helps brands figure out who their clients are, and by doing so, improves communication with them. The combination of each brand’s marketers’ creativity with the data science (including predictive analytics and dynamic campaign automation) enables building long-term customer relationships and improving customer experiences.
-What advantages does AI give brands in terms of customer insight, data, etc.?
Optibot, Optimove’s AI component helps marketers gain insight from data. These insights are the basis for customer communication. The infinite amount of data available today creates a situation wherein no human can get much knowledge from sifting through this data. Optibot combs the database and helps marketers (a) find valuable untapped potential segments (b) hone the coordination between each segment and the messages the customers within it receive (c) helps understand which campaigns work and which don’t, and why. In short, Optibot takes on all the analysis, so the marketer is free to be creative.

-Are there any brands/industries that should be cautious about the utilization of AI? Does Optimove see any disadvantages with it?

AI is neutral. It’s neither good nor bad. It’s how it’s used that makes a difference. At Optimove we use AI to help brands communicate more effectively with their customers and create better customer experiences for them. We’re able to show $1million monthly uplift in net revenue from existing customers for an online fashion retailer; 100% increase in average customer future value for an ecommerce apparel site; 64% increase in average order value for a food delivery startup. These numbers speak for themselves. They wouldn’t be possible without AI. As long as AI is used for the benefit of each individual, each customer, we see only advantages.
 
-How can a brand find the balance between “old school,” more traditional marketing and this new era of valuable tools such as AI? Is adopting new technology necessary, no matter the industry?

AI gives marketers the time and space to be creative, since the measuring, optimizing and scalability is done by AI. In today’s world, any brand not using the data it collects would be remiss. The amount of data and information would be impossible and ineffective for any human to analyze. If we look at marketing as a good partnership between “old school” strategy and creativity, and innovative technology, AI provides the scientific support for strategy to be effective. Rather than analyzing reports, marketers are freed to strategize and create, and brands can communicate more effectively with their customers.
 
-Where does Optimove see AI going within the digital marketing landscape in the next five to ten years?

In the next few years, online-businesses, big and small, will be giving conventional brands a real run for their money in a race that’s already begun. “Digitally native” habits are no longer a niche. Younger generations’ share of the market is quickly growing, and marketers will need to keep up with their changing expectations and preferences. While brand still matters, personalization and communication are becoming more important. Digital-first companies that adopted personalization technologies early on are able to truly challenge traditional retailers by responding quickly to customer needs, connecting online and offline experiences, and reaching targeted audiences with highly personalized messages. Marketing organizations that will move quickly — investing time and resources toward hiring data-savvy talents, leveraging sophisticated AI technology to personalize their customer experiences, and thinking digital-first — will come out ahead. 

AI is becoming more of a commodity and as customer-centric as brands are today, they will become more so in the future. More and more brands are and will be competing for the same pool of customers. A brand’s ability to lead will a function of its ability to fulfill its customers’ needs. Brands that don’t adopt technological innovation here and now, will soon become anachronistic, failing to survive the coming decade.

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