Imagine you are walking through an airport, proud of your brand’s ads throughout. And then you see someone who fits perfectly into your target audience.
You’re excited at the prospect, until you notice that she is oblivious to it and engaging with someone else’s digital media on a smartphone instead.
That’s the basic reality of marketing today. To embrace digital media, it’s essential for your company to undertake the basic changes of digital transformation.
As the Forbes Technology Council recently noted, undertaking this change is a sink-or-swim proposition. This quick rate of change will cause about half the current S&P 500 to drop off in the coming decade. Newer, more agile names will appear.
The road ahead only looks rough because this is fast change with major new paradigms. What’s making the road smoother is that there are already established technologies, and experts can help you make the switch and connect with your customers in real time. Going forward, however, the pace is quickening. You’re looking at the following major shifts in your business just to keep up:
- Digital transformation: Real-time, interactive communication with no time to stop and think
- Data science: Putting as much data as you can gather to work to understand your business
- Artificial intelligence: Methods of turning your experience, represented by data, to work as knowledge
Personalized, interactive technologies are engaging customers right now. Those technologies are not experimental: they’re as mature as any in this fast-paced time of change. What’s happening now goes beyond real-time interaction into the future. Companies are combining interactive technologies with predictive analytics and artificial intelligence to move the point of interaction past right now to this afternoon or next month. It’s not as strange as it sounds.
New base paradigms of communication
As you confront the challenges of audience engagement and compelling content creation and monetization in the new era of media, it’s worth keeping new digital age communication paradigms top of mind in your workplace. There have been major changes in the public communication ecosystem:
- Since we can exchange information in real time, that’s what we’ll do now. The public won’t accept less.
- With abundant information, we’ll have to find new ways to keep up with it.
- Media will flow in multiple ways: text, video, 3D, VR and more.
- The public will seek and select information they want.
- With overwhelming amounts of data, transformation into knowledge will give it new value.
This change is continual. We’re moving beyond real-time interaction to include what AI-based models infer about customers’ preferences and needs in the future. Predictive analytics gives us this edge. What was “important” before is now “urgent.”
Experience-based predictive example
Here’s a simple example of the principles behind predictive analytics:
- A customer comes into your candy shop daily and always leaves with the same bar of milk chocolate.
- You make note of the other chocolate types he considers.
- You make note of other things about him that you can infer: Does he have a family? How old is he? How long does he linger on each type of chocolate?
- One day, he decides he wants something different, and you use your experience in general and specific data about him and his shopping habits to suggest his most likely choice.
- You take payment and wrap up the sale. He’s a happy customer, and maybe even surprised.
Using existing products and the cloud to move quickly to predictive techniques
Now you can use predictive analytics capabilities with your existing data to help you understand your customers better. They help you to see opportunities and make decisions that aren’t obvious from past data and current interactions.
Just as the digital transformation required a perspective shift from longer lead times and interactions to real-time immediacy, this AI-facilitated next step takes our thinking solidly into the future.
Predictive analytics tools can help you build a new source of knowledge and insight into your business systems. For real-time digital media, it creates a forward-moving interaction instead of a reactive one.
Results-based predictive techniques
Before, you could look at historical data and make educated guesses or base your decisions on historical odds. Now, predictive analytics provides a result, based on AI algorithms, large amounts of your historical data, trend analysis, the history of past calculations, and much more.
Predictive analytics finds the story behind the story – the horse whose time has come to win or the customer who is in a position to place a large order but hasn’t mentioned it yet.
With predictive analytics, you can infer or predict information about the customer that they haven’t given you directly. The customer might not even be aware of the information yet. This creates a new ethical realm you need to consider.
Predictive analytics revolutionizes interactive results
While predictive analytics helps to streamline your business operations, it tunes your business communications to your customer’s situation. You’ve seen current machine learning, which suggests new movie or music choices based on past choices and experience with similar customers.
With predictive analytics, your interaction can include suggestions that anticipate the customer’s growth as a listener, and it can suggest signing new artists who are likely to meet anticipated customer needs in the coming year.
Trading analytical approaches for predictive ones
The current conversation about digital communication paradigms will continue to evolve from real-time to predictive. We are crossing the line into the future, where media creators move from reactive delivery and include AI-based user preference, anticipation, and prediction in the mix.
Give customers information that’s uniquely relevant to them based on real-time composite data. Learn about “Direct-to-Consumer: The Power Of Personalized Content.”