Table of contents
Introduction
I think marketing DX has become one of the buzzwords. According to a survey, nearly 80% of companies are said to be working on marketing DX. However, there are probably many people who do not really understand what kind of things they can actually do with marketing DX. Therefore, this time, we will introduce examples of marketing DX that utilize AI in particular.
What is marketing DX in the first place?
Marketing DX is not just digital marketing. The aim is to maximize sales by utilizing digital data. In other words, it means optimizing the customer experience, accumulating and analyzing data, and digitizing systems and organizations. The following two points are important.
Connect all channels and optimize customer journeys
With the spread of smartphones and other factors, there are more points of contact between customers and companies than ever before. It would be wasteful if the company said something completely different at each point of contact, or if the same information was conveyed every time.
However, marketing DX can optimize the customer journey by linking all channels by acquiring customer behavior and purchase data. Digitization has made it possible to acquire and analyze customer data, which has made it possible to implement measures that could not be realized before.
Marketing DX is a means, not a goal
A common failure in marketing DX is that the goal is to do digital marketing and acquire customer data. Since then, many companies have acquired only the data and are asking if they can do something about it.
However, marketing DX is only a means. Clarify the goals of what you want to achieve with marketing DX and what kind of customer experience you want to achieve. In addition, it is important not only to consider what kind of measures to introduce for marketing DX, but also to consider how it will be operated and the organizational structure for operation.
Starbucks
Now, let me introduce a specific example of marketing DX. The first is Starbucks. I think Starbucks has an image of just a coffee company, but it is one of the companies that are currently producing great results with AI-based marketing. I would like to introduce what we are doing in detail.
personalized promotions
Starbucks runs a loyalty program called Starbucks Reward®, with over 16 million members in the US alone. Through our loyalty program, we acquire a lot of data such as customer ordering trends and purchasing patterns. We analyze the acquired data and offer recommended products according to information such as weather and customer segments.
product development
At Starbucks, such data is used not only for promotion but also for product development. For example, the pumpkin-flavored menu, which was sold in a limited area 15 years ago, is now a seasonal standard menu around the world based on purchase data at that time. In addition, Starbucks currently sells a variety of products such as instant coffee at supermarkets in addition to its stores. By analyzing the segment of people who drink coffee at home, it helps us decide what kind of products we should develop for home use. For example, previously there were only sweetened chilled drinks on the menu, but now a sugar-free menu has been added.
Store development/maintenance
Starbucks operates in many locations, and data is also used to determine where to open stores. By modeling the area’s population, income level, competitor data, etc., we predict data such as sales and use it to select real estate.
Also, the espresso machine is also IoT. As a result, by consolidating information such as coffee extraction status in the data center in real time, it is possible to immediately detect machine malfunctions and perform maintenance. In this way, Starbucks realizes a new customer experience not only through promotion but also through DX, including store development.
netflix
NETFLIX is a company that distributes movies and dramas, but it is not only attracting attention for producing original works, but it has also achieved great success in marketing activities that utilize AI. Here, we will introduce the efforts of NETFLIX.
image personalization
NETFLIX displays artwork thumbnails when selecting movies and TV shows. These thumbnails are not all unified, but are personalized according to the viewer, such as emphasizing the title or changing the main actor according to the customer’s past viewing history. In this way, displaying thumbnails tailored to customers rather than uniform thumbnails contributes to increasing the viewing rate of content.
AI also automates the creation of such thumbnails. By analyzing what kind of scenes appear in the content and ranking the actors and actresses who appear in them, patterns are created and thumbnails are created.
Recommendation
Since the DVD rental business before the distribution business, NETFLIX has been acquiring and analyzing data such as which elements such as actors, directors, genres, etc. are popular. As a result, we were very successful in considering which DVDs to stock. In addition, in the current distribution business, which country, which day of the week, and what time you are watching the work, and analyze the past viewing works, it will recommend recommended works. In this way, AI is used in marketing to increase the viewership of content and increase customer satisfaction.
eBay
Last but not least is eBay. eBay, one of the auction sites, has been very successful in using AI in content marketing to increase customer usage.
Email newsletter automation
eBay utilizes e-mail magazines as a measure to increase usage and purchase rates for prospective buyers. However, with millions of items listed on eBay, it’s almost impossible to come up with recommendations manually, and it’s also difficult to create emails that are suitable for each customer. However, eBay uses AI to find recommended products by analyzing customer segments and interests. We also automate copywriting and deliver e-mail magazines suitable for one-to-one communication. By using AI in this way, it was possible to automate everything from extracting recommended products to creating them, leading to improved marketing effectiveness.
summary
What did you think. There are various measures for marketing DX, but this time we introduced an example using AI. How about starting with an analysis of your own company, such as what kind of measures you can implement in your own company by referring to other companies?
