Turing's Tofu #14

Lemonade's AI Strategy Teardown, Enterprise AI Insights & Voice Engine Unveiled

Originally publish on 4/7/24: https://turingstofu.beehiiv.com/p/turings-tofu-14

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Turing's TOFU: AI-Driven SaaS Growth

Curated by Andrew Mounier

Welcome to this edition of Turing's TOFU. This week, we delve into OpenAI's Voice Engine and its transformative potential in education and storytelling, Apple's Siri enhancement with ReALM for improved contextual understanding, and OpenAI's move to make ChatGPT 3.5 universally accessible. Plus, experience the uncanny realm of AI deepfakes with our must-see examples.

In "Marketing Moments with Mounier," I reflect on my recent appearance on The Marketing Umbrella podcast, discussing the impact of AI on enterprise productivity. We'll explore strategies like cost-free trial signups and tailored pricing that can propel your business forward in an AI-enhanced market.

And don't miss our "TOFU Quick Bytes" featuring a strategic teardown of Lemonade Insurance. Discover how they're disrupting the insurance sector with AI, social good, and a strategic focus on the millennial market, crafting a unique and socially impactful brand.

Gear up for a journey through the latest innovations and strategic insights in AI, SaaS, and marketing. Let's get started!

???This Week in AI & SaaS ??

• OpenAI has launched a voice cloning AI model, called Voice Engine, which can replicate a person's voice from just a 15-second sample, with initial access granted to a handful of companies, including Age of Learning and HeyGen, to test the model's potential in educational and storytelling contexts. Read more .?
• Apple has released a new small language learning model called ReALM, designed to power voice assistant Siri, which can reportedly “see” and interpret on-screen information and understand context, better than GPT-4 can. Read more .?
• OpenAI has announced that users will no longer need an account or login details to access its free ChatGPT 3.5 model, in an effort to make AI more accessible to the masses.?Read more .
• Here are 7 examples of AI deepfakes you have to see. Watch it

??Turing’s Top Picks ??

FEATURED TOOLS?

• IMG2HTML: IMG2HTML is an AI-powered design tool that can transform images into structured HTML pages. Try it .?
• Short Videos App: Short Videos App uses AI to produce short videos for social media, streamlining the video production process and enabling more engaging social posts. Try it .?
• Voxal: Voxal is an AI Chatbot (designed for SaaS platforms) that boosts sales by showcasing products, answering product queries and facilitating lead generation. Try it.

Read of the Week:?

Generative AI Perspectives From Databricks, Deloitte, & NVIDIA

An intriguing revelation from a joint study from MIT and Databricks shows that 88% of business leaders are tilting their investments toward Generative AI

In this publication, Databricks, Deloitte, and NVIDIA underscore the critical importance of generative AI by sharing their various points of view and subject matter expertise.

Read it .

?? Marketing Moments with Mounier ??

I recently had the pleasure of joining The Marketing Umbrella podcast for an episode titled "Enterprise Productivity and AI." During the conversation, we discussed how AI is revolutionizing the way professionals handle their daily tasks, from simplifying email correspondence to enhancing strategic planning. Some key takeaways:

• Offer Trial Signups Without Cost Barriers: Encouraging free trial signups enhances the user experience for enterprise clients, mitigating any reluctance to engage with and recognize the product's value.
• Tailored Pricing Strategy: Customizing pricing to fit each client's specific needs fosters a personalized service experience, emphasizing the product's value and strengthening client partnerships.
• Provide White-Glove Onboarding: A comprehensive, hands-on onboarding process facilitated by a dedicated Customer Success representative ensures seamless product integration and maximizes operational benefits for clients.
• Focus on Larger Organizations: Targeting larger entities amplifies the platform's cumulative advantages, leveraging its full potential to transform enterprise productivity. To checkout the full episode just click below ??

???TOFU Quick Bytes: Lemonade Insurance Teardown ??

Lemonade Insurance teardown

Founded in 2016 (by the co-founder of Fiverr, Shai Wininger, and ex-president of Powermat Technologies, Daniel Schreiber), Lemonade Insurance has disrupted the insurance industry by leveraging technology, data, and AI to make insurance more affordable, on-trend, and socially impactful.

Strategy overview:?

They target their marketing at millennials and use behavioral economics, chatbots and AI to make buying and managing issuance as easy as ordering takeout. Charity is at the center of their business model, as they allow each customer that signs up to the platform, to donate any unclaimed premiums to a charity of their choice. They also charge a flat fee (20%) on their customer's premiums, so there is no conflict of interest, and their goal is to turn insurance from a “necessary evil” into a “social good.”

Performance Analysis:

• Lemonade made $429.8 million in revenue in 2023, with 67.43% growth year-on-year.??
• It has a market capitalization of $1.16 billion ?
• They have over 2 million customers across five markets (renters, homeowners, life, pet, and car insurance) and 1,258 employees ?
• Their stock has grown more than 880% since it went public in 2020?
• They're known as one of the 50 Most Innovative Companies

How have they achieved this??

Critical Teardown:

What does Lemonade do well?

They use AI to improve customer experience and operational efficiency: Traditional insurers typically rely on human-led processes, which can mean multiple phone calls and long waiting periods for consumers wanting to make a claim or get a quote. Lemonade customers, however, can have their claims paid out in as little as three minutes and a quote generated in less than 90 seconds thanks to the company's automated processes led by AI chatbots Jim and Maya.

They donate to charity: Lemonade is a “certified B Corporation” because, when a consumer buys an insurance policy, 25% of the premium goes towards the company’s administrative costs and the remaining 75% is used to pay any insurance claims the customer might have that year. After the client has filed a claim for damage at the end of the year, what is left of the 75% is donated to the customer’s preferred charity. This commitment to social good resonates with customers who are looking for companies that have a positive impact on society.?

They target tech-savvy, price-conscious millennials: The company’s technology and customer-centric approach appeal to customers who want a more convenient and efficient insurance experience.

They’re transparent: They build trust with their audience with bold, honest statements on their homepage and in their blog posts–where they’re open about ‘shoddy performance in their early days’-- and they’ve even called their blog ‘The Transparency Chronicles.’??

They run short, snappy, eye catching social media campaigns: They utilize social channels like Facebook and Instagram to post short, snappy videos where the creative says more than the copy, and test each post to find what works.

What doesn’t Lemonade do well??

• Lemonade has a lot of amazing assets they have already created. Their positioning as a socially driven and more human insurance company really stands out in a sea of sameness. However, they could significantly improve their brand loyalty by incorporating more video and audio assets. They launched a podcast in 2022 called Benevolent Bots. But it seems like that has stopped. I also only found audio versions. I would highly encourage them to bring this asset back and incorporate a video element. That will give the organization hundreds of great social snippets, email assets, and blog pieces that could be used to build more trust with their audience.
• One CRO aspect that was missing is a call to action to subscribe to a newsletter, magazine, blog, or any other asset. With the amount of social good the organization is doing this is a missed opportunity to engage and stay top of mind to individuals who are not ready to purchase. They could also use this as an additional distribution method to continue to build their relationship with current customers.
• Lemonade regularly posts on social media about its AI capabilities, with statements that explain how its AI analyzes videos of customers when determining if their claims are fraudulent. While his would be impressive to a B2B organization that wants to ensure their org isn’t getting defrauded, the message probably doesn’t resonate well with a B2C market. The idea of being judged by AI for something as crucial as insurance could be alarming, so they might want to test their messaging on specific audience segments before posting on social about their AI capabilities.??

AI integration:

In addition to Maya and Jim, Lemonade rolled out its latest Lifetime Value 9 (LTV 9) model last year, which uses 50 ML models to determine the LTV of each customer. It auto-calculates how likely a customer will be to make a claim, switch insurers, and buy multiple policies (which are key inputs into the premium amount they should pay) and also dictates which products and which locations should get the most marketing investment.

Key takeaways:?

• Utilize chatbots to give speed up internal processes while giving customers a human touch.
• Bring back the video podcast.
• Align with charitable giving to appeal to those that believe in social good.
• Create trust by being authentic, honest, and transparent about the good, the bad, and the ugly.
• Run snappy social campaigns that are more creative than copy-heavy to gain interest and inspire engagement.
• Segment your messaging on social and test it works on different audiences to make sure it hits the way it should.?

What campaign or content marketing strategy would you like to see torn apart, next? Let me know!?

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