The Future of KPI Optimization with GenAI: Precision and Growth

Lately, I have been daydreaming about how the future will look with the speed of technological developments, especially around AI. I think this is the side effect of watching and reading a lot about these developments, especially around GenAI. Thanks to the algorithms of the apps I am using to follow tech news, e.g., YouTube, LinkedIn, Medium, etc., I kept getting more and more information as I read and watched more and more about certain topics.

Coming from the consumer products industry pedigree (P&G), I have a certain way of understanding and analyzing business with data points. I think this is more of a marketing-driven thinking vs a product-driven thinking. I strongly believe in the correlation between the KPIs (or KBDS= Key Business Drivers whatever you name it ) and the results.

Having the right KPIs is like finding the right molecule to treat a sickness. It is like defining the right mix of elements to react and create a unique alloy with the needed qualifications to work for a specific task. Most importantly, it gives you the opportunity to scale the production of the end product. You have the recipe, and now you need to make a plant/factory to make more of this, knowing what would happen when doing what. ?

If this is the case, then GenAI can do miracles in defining the right KPIs in any business, like it does for drug discovery, eliminating unlikely combinations for molecules and speeding up the process to get to the working mix.

Why would not the same apply to KPIs? Companies have huge data sets containing sales, market shares, household panels, packaging tests, copy tests, in-store or e-commerce sales fundamentals, etc. Why would GenAI not be able to define the golden mix of KPIs for any brand or product producing a desired outcome/result, i.e., market share, sales uplift, etc.? I believe it can even be made in a weighted or prioritized way so that you can make your investment accordingly with precision.

Would it not be great to know what exactly you need to deliver to grow your sales or gain market share and replicate this around the globe, wherever you operate, with the precision of a Swiss watch (no offense, but I admire the precision engineering of the country I live in)?

This would undoubtedly require a human touch, as GenAI might come up with a complex set of KPIs that you may need to simplify for execution so that anyone in your organization can understand and execute them wherever they are.

You may want to segment them around the Ps or any other meaningful framework for your organization to internalize and execute excellently.

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Hypothetical Example:

Product: Purchase intent score >?, Claimable Superiority etc. (30% Weight)

Packaging: Stoping and Closing power >? (10% W)

Placement: Sales Fundamentals >? ?(20% W)

Pricing: +5-10% < vs. avg, vs. competitor etc. (20% W)

Promotion: Copy test score >? (20% W)

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You can even have brackets like

0-40% you lose share

40-70% you sustain share and grow with the market

70-100% you grow share.

Methodology:

1)??? Narrow down the KPI hypothesis using GenAI.

2)??? Put your hypothesis into in-market test.

3)??? Validate and deploy.

With this guidance, anyone can plan their commercial operations in any market for the best ROI and business growth.

Let me know if you work on a project like this. I would love to learn more and even participate in it.

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Cheers,

C.Firat Caliskan?