The history of personalization
David Edelman
Harvard Business School
David is Executive Advisor & Fellow at Harvard Business School
Personalized, Customer Experience in the age of AI- Part 1 The history of personalization
- Part 2AI Personalization Improves ROI?
- Part 3AI personalization Secret Sauce
- Part 4Mobilizing the C-suite to embrace personalization across the entire organization
- Part 5When will AI be rich enough to start customizing the experiences without relying on us marketers?
Show Notes
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00:00Introduction to Customer Strategy in the AI Era.Discussion on the importance of customer strategy in the era of AI and its impact on businesses.
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05:45Evolution of Personalization from DM/Telemarketing to AI.Exploration of the different stages of personalization and its transformation over time.
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12:20The Role of Personalization in Enhancing Customer Experiences.Insights into how personalization, when done effectively, can revolutionize customer experiences and add value to brands.
Quotes
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"the interaction on digital channels had a whole exhaust of data, some of which you could actually act on in the moment." (David Edelman)
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"In mobile, if you've downloaded my app as a retailer, then I can then send you notifications of things relating to offers and stuff that you can access through the app." (David Edelman)
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" one of the most important things overall is that we're moving from thinking about this in just a marketing frame of mind to one that's about more broadly customer experience." (David Edelman)
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“ you need to understand what the possibilities are, but you don't even know until you try. And AI can enable that. It can actually create five different versions to test. That's gen AI. But then there's other AI, such as machine learning AI” (David Edelman)
Episode Chapters
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02:11: Stages of Personalization -- History of personalizationThe evolution of personalization in marketing begins with direct mail and telemarketing, where segmentation was the primary focus.
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04:00: Direct Marketing Channels -- Early direct mail to catalogs In 1989personalization was more about targeting using direct mail, telemarketing, and catalogs, like sending specific catalogs to customers based on their previous purchases.
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06:23: Internet Era -- Early online personalizationThe advent of the Internet allowed for real-time data collection and personalization of landing pages, marking a significant shift in how marketers approached targeting.
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07:17: Outbound Marketing Channels -- Email marketingThe shift from direct mail to email marketing brought advantages like reduced costs and the ability to track interactions, leading to the early days of AB testing.
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08:41: Web 2.0 Era -- Mobile, content, and digital advertisingMobile devices introduced location data, content management improved, and digital advertising became more sophisticated, allowing for targeted messaging.
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10:17:Marketing Strategy Shift -- Push to pull methodsThe focus shifted from pushing campaigns to targeting customers in real time based on their situations and interests, increasing relevance and responsiveness.
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12:07: Age of AI -- Beyond marketing to customer experiencePersonalization in the AI era extends beyond marketing, shaping customer experiences throughout their interaction with brands, not just during purchase decisions
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.13:33:Example from Aetna -- Using data for customer serviceAetna used personalized videos to help customers understand their health plans, leading to improved customer satisfaction and engagement.
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16:38: Data Usage -- Collection and applicationCompanies can better personalize experiences by collecting relevant customer data through direct questions and interactions, enhancing product relevance.
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19:21: AI Integration -- Testing and learning in real-timeAI enables continuous testing of variables to determine the best marketing strategies, allowing for more nuanced and effective personalization.
- Part 1 The history of personalization
- Part 2AI Personalization Improves ROI?
- Part 3AI personalization Secret Sauce
- Part 4Mobilizing the C-suite to embrace personalization across the entire organization
- Part 5When will AI be rich enough to start customizing the experiences without relying on us marketers?
David Edelman
Harvard Business School
David is Executive Advisor & Fellow at Harvard Business School
Personalized, Customer Experience in the age of AIUp Next:
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Part 1The history of personalization
David Edelman, senior lecturer at Harvard Business School, takes us through the history of personalization in marketing, starting from the early days of direct mail to today's AI-driven strategies. He explains how channels have evolved and discusses the importance of moving from merely targeting customers to enhancing their overall experience. Learn how companies can gather and utilize data more effectively to create lasting, personalized customer interactions.
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Part 2AI Personalization Improves ROI?
David Edelman, senior lecturer at Harvard Business School and author of "The Personalized Customer Experience in the Age of AI," delves into the history and future of personalization. Discover how proper use of artificial intelligence can drive significant ROI improvements, illustrated by examples like Shopify's impressive 400% boost in conversion rates. Gain insights into the critical importance of starting with customer value to create impactful, personalized experiences. Learn why brands like Starbucks have succeeded by simplifying the user experience through smart AI applications.
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Part 3AI personalization Secret Sauce
David Edelman, Senior Lecturer at Harvard Business School and Executive Advisor, delves into the history of personalization and shares five key ingredients for creating personalized customer experiences. Learn how to empower customers, manage sensitive information, and utilize AI for optimal engagement timing. Discover strategies for crafting personalized content and continuously improving through testing and feedback.
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Part 4Mobilizing the C-suite to embrace personalization across the entire organization
David Edelman, Senior Lecturer at Harvard Business School and executive advisor, dives into the history of personalization and how to mobilize the C-suite to embrace it. He shares critical insights about breaking customer compromises and creating a rallying cry that puts the customer first. Discover strategies for transforming customer experiences and leveraging data as a corporate asset.
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Part 5When will AI be rich enough to start customizing the experiences without relying on us marketers?
David Edelman, Senior Lecturer at Harvard Business School and Executive Advisor, delves into the evolving landscape of personalization in the AI era. Discover how AI is enabling brands to create broader, more integrated personalized solutions, and the strategic implications of being at the center of these innovation ecosystems. Gain insights on the collaborative potential of AI in managing and merging data streams, and its role in transforming customer experiences across industries.
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