Sales Over Night, Brand Over Time
CMO Confidential
The Marketing Podcast for those looking to navigate the ever-changing waters of marketing the C-Suite and the board room
CMO Confidential Newsletter: Week of Sept 16th
5 Key Insights from Michael Treff’s Episode on CMO Confidential
In the latest episode of CMO Confidential, Mike Linton chats with Michael Treff, CEO of Code and Theory, about how businesses can better anticipate customer needs using AI. Michael’s experience leading a cutting-edge agency that merges creatives, engineering talent and technology offers valuable insights for marketers grappling with the ongoing digital transformation. Here are the top five takeaways:
1. The Evolution from Reaction to Anticipation
Michael highlights how AI and new technologies have shifted marketing from reactionary (responding to past behavior) to anticipatory (predicting future needs). Companies no longer need to rely solely on historical data; instead, they can use AI to add in additional data sets which will allow them to anticipate customer desires and behaviors, creating a hyper- personalized and forward-thinking experience.
2. Behavior is the Ultimate Prompt
Michael emphasizes that real consumer behavior is more valuable than what people say in surveys or focus groups. By studying how people actually act—what they click on, buy, or consume—companies can design products and services that better meet evolving needs. He shared the all too familiar story of consumers, saying one thing and completely doing another. AI’s ability to instantly react and learn from actual behavior instead of markets waiting for research reports opens up a new frontier which can lead to more effective decision-making and marketing strategies.
3. AI's Role in Personalizing Customer Journeys
In addition tousing AI for operational efficiencies, Michael argues that its maximum value lies in creating new experiences. AI should also be viewed as a creative enabler, helping? tailor customer journeys in ways that go beyond simple predictions—offering products, services, or content dynamically based on subtle shifts in consumer behavior and needs. Examples of this would be combining years of travel searches along with other factors to personalize suggestions in advance of a likely time and coordinating health care services and billing.?
4. Anticipation Beats Prediction
While prediction models rely on past actions to forecast what customers might want (e.g., Netflix recommendations), anticipation involves factoring in life changes or other behaviors that suggest future needs. For instance, if a customer buys hiking boots and gorp, anticipating their interest in outdoor activities opens opportunities for more relevant product recommendations or services. This ability to combine factors versus just predict the next best sale represents a major step forward.?
5. AI Driving Customer Experience is the Future
Michael points out that while AI can and should be used for customer service efficiencies (automating common questions, handling inquiries, etc.), its real potential lies in transforming customer experience from end-to-end - building in all channels and touch points at speed. The companies that can creatively apply AI to deliver unique, personalized, and intuitive experiences will have a competitive advantage in revenue growth in addition to cost savings.?
Calling All B-School Professors…….
CMO Confidential is featuring business school case studies to help the real-world development of our audience.? If you are a professor (or know of one) that is interested in sharing a detailed business case with our audience (think Dr. Dan MCCarthy and last week’s episode) reach out to us at [email protected] to set up a discussion.
WHAT YOU SHOULD READ OVER THE WEEKEND:
23 And Me Board Quits
Influencer Predictions for the Remainder of 2024
Nike CEO Out
Next On the Show
Matt Carey, CIO EVP, Home Depot
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