AI isn't a goal (or a strategy): "Horizontal" Artificial Intelligence, part 2

Let’s face it: AI is here to stay, and despite the hype, it’s really good at a lot of things. However, amidst the fervor for adoption, it’s crucial to remember that AI itself is not the ultimate objective of any marketing strategy. Instead, it serves as a powerful means to achieve broader business goals. So, in this newsletter, we’re going to look at leveraging AI as an augmentative tool rather than an end goal in itself.

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Incorporating a Horizontal Approach to AI Enables A Better Understanding of the Full Customer Lifecycle

Reality check: your customers are not terribly interested in your org chart. AI can help you bridge seemingly insurmountable internal hurdles when you approach it as a horizontal function, working across functional areas. And the best part: your customers win.

A holistic view of the business facilitated by a horizontal view of AI allows businesses to better understand and respond to the customer lifecycle, rather than being siloed by a specific product team, channel, business function, or other arbitrary constructs that those inside an organization may care deeply about, yet that customers care very little about.

By analyzing interactions across different functions, AI can help businesses see how these areas are interdependent and how they contribute to the customer journey. This insight allows AI to orchestrate better interactions by predicting needs and preparing responses that are timely and appropriate.

For example, if a customer frequently contacts customer service for support post-purchase, AI might flag this as an opportunity for the sales team to offer an extended warranty or additional support services at the next interaction.        

AI's true potential is realized when it works cross-functionally, bridging marketing with other business areas such as sales, customer support, and even supply chain management. For marketing leaders, utilizing AI across these functions can yield significant insights into customer behavior, preferences, and pain points. This comprehensive understanding ensures that marketing strategies are not developed in isolation but are informed by real-time data from all customer touchpoints.

Moreover, AI enhances the precision of customer segmentation and personalization efforts. By integrating data from various sources, AI can create detailed customer profiles that inform targeted campaigns, optimize ad spend, and improve content relevance. It can also predict future trends and customer needs, allowing marketers to proactively adjust their strategies for maximum impact.

Additionally, AI's ability to automate routine tasks frees up valuable time for marketing teams to focus on strategic initiatives, such as digital transformation and sustainability efforts. This not only increases efficiency but also fosters innovation within the marketing department.

Predictive Analytics and Anticipating Needs

The ability of AI to employ predictive analytics across various touchpoints can profoundly impact a business's proactive capabilities. By integrating data from marketing, sales, customer service, and other customer interactions, AI can anticipate customer needs before they become apparent to the customer themselves. This anticipation translates into business actions such as preemptively addressing potential issues, offering personalized upsells, or tailoring content that meets emerging interests, thus not only meeting but exceeding customer expectations.

Using propensity models, churn prevention, and other approaches can be game-changers for organizations, focusing actions on the customers that need action now, and focusing all customers on the next best action for them.        

However, for AI to truly unlock its full potential, it must operate cross-functionally, bridging both marketing functions and other areas of the business. Insights generated from marketing analytics can inform product development, ensuring that new offerings align with customer preferences and market trends. Similarly, data from customer service interactions can enhance marketing strategies by identifying common pain points that require attention. This holistic approach ensures a seamless customer journey, where every touchpoint is optimized for efficiency and personalization.

In addition, AI-driven predictive analytics can streamline decision-making processes across departments.?

For instance, supply-chain management can benefit from marketing forecasts, enabling better inventory management and demand planning. Human resources can use data insights to tailor training programs that enhance customer-facing roles, ultimately improving customer satisfaction.        

The Win-Win

The great part is that employees win in this scenario. Think about it: if you were an employee and had better information to act upon, you'd be able to do your job better. Given the right information and the ways to access it, most employees would gladly help customers be more successful.

By incorporating AI as a horizontal function rather than a narrow vertical solution to a specific challenge, organizations can help themselves to be more effective while helping their customers have a better experience while getting what they need, when, where, and how they want it.

By fostering a collaborative environment where AI insights flow freely between departments, businesses can create a unified strategy that leverages data to its fullest extent. This not only enhances the customer and employee experience but also drives innovation and efficiency, positioning the business as a leader in digital transformation and customer-centric strategies.

How is your organization using AI? Is it horizontal or vertical? ?? Get our free Using Horizontal AI Checklist here

In the next edition, we'll continue to explore the horizontal nature of AI and how it applies to your work in the enterprise.

Listen to the podcast for more

Until then, get more insights and updates by listening to The Agile Brand with Greg Kihlstr?m podcast.

Stay tuned as we explore more about how to meaningfully incorporate AI into your marketing work and go past the hype. Sign up for this newsletter and you can see more on my website at https://www.gregkihlstrom.com