The Age of Relevance: How to Stay Relevant in the Age of AI

Table of Contents

1. Introduction
2. The Age of Relevance
3. The Evolution of Marketing
4. The Five Ps of Marketing
5. Examples of the Five Ps in Action
6. Personalization: The Key to Relevance
7. Legacy Thinking in Marketing
8. The Fallacy of Loyalty
9. The Fallacy of More
10. The Fallacy of Precision and Lift
11. The Importance of Data, Algorithms, and Ecosystems
12. Celebrating Individuals with AI
13. Conclusion

The Age of Relevance: How to Stay Relevant in the Age of AI

In today's world, relevance is the holy grail for marketers. Consumers expect personalized, responsive experiences from every brand they Interact with, and companies that fail to deliver risk losing out on billions of dollars in revenue. In this article, we'll explore the new age of relevance and how businesses can stay Relevant in the age of AI.

The Age of Relevance

Relevance is no longer just about being the benchmark in your industry or in comparison to your competitors. Once a consumer experiences a highly relevant, personalized approach from one brand, they bring those expectations to all the experiences they have with other brands in all categories. In this new age of relevance, marketing has evolved from the traditional four Ps (product, promotion, place, and price) to a new set of five Ps: purpose, tries, protection, partnership, and personalization.

The Evolution of Marketing

Marketing has evolved over the decades from mass marketing to segmentation to customer lifetime values. The 2010s were the age of loyalty, with companies using CRM, tailored incentives, and advanced retention techniques to keep customers coming back. Now, We Are entering the age of relevance, where the focus is on the much sought-after and spoken about, but previously unattainable, segment of one.

The Five Ps of Marketing

The five Ps of marketing are purpose, tries, protection, partnership, and personalization. Purpose is the need to feel that the company shares your values and advances them. Tries is the need for you to feel proud and inspired to use the company's products and services. Protection is the need for you to feel secure when doing business with the company. Partnership is the need for you to feel that the company relates to and works well with other partners. Personalization is the need for consumers to feel that their experience of the company is being constantly tailored to their needs, priorities, and requirements in the moment.

Examples of the Five Ps in Action

Chobani, the Greek yogurt company, is a success because it emphasizes the connection to an authentic food connection. Patagonia, the sustainable clothing company, resonates with customers who believe in and fight for the environment. Spotify, with its 200 million customers and 140-150 million song catalog, uses profiling, engagement, and personalization to deliver the most personalized experiences in the moment.

Personalization: The Key to Relevance

Personalization is the key to relevance in the age of AI. Advances in data, analytics, and AI make it possible to offer personalization at Scale. The best companies are digital native platforms that can easily Create millions of AI-led personalized experiences for individual customers through their understanding of those customers and their use of data and algorithms.

Legacy Thinking in Marketing

Legacy thinking is a problem for many companies trying to stay relevant in the age of AI. The fallacy of loyalty, the fallacy of more, and the fallacy of precision and lift are all examples of legacy thinking that can prevent companies from embracing the new era of marketing.

The Fallacy of Loyalty

Loyalty is dead. Consumers are just not loyal anymore. Organizations spend billions of dollars a year on trying to ensure loyalty, but loyalty programs and incentives to make You stay loyal don't make people loyal at all. The focus needs to be on trying to ensure that from the basket of choices, the top few choices are highly relevant and personal.

The Fallacy of More

More is not better. There is too much choice in the world today, and relevance is not about providing more choice. It's about not wasting the customer's time and simplifying their options. The focus needs to be on providing a small set of highly relevant and personal choices.

The Fallacy of Precision and Lift

The fallacy of precision and lift is the idea that the top prediction that your Algo makes will be right and that the algo will result in a big lift. The focus needs to be on maximizing recall and engagement, not just precision and lift.

The Importance of Data, Algorithms, and Ecosystems

Data, algorithms, and ecosystems are critical to staying relevant in the age of AI. Companies need to be able to understand their customers and their behavior and derive their underlying tastes and preferences from the data they have. They also need to engage customers across various channels and link to ecosystems to improve personalization efforts.

Celebrating Individuals with AI

To celebrate hundreds of millions of people as individuals, AI must be able to profile customers, engage them across various channels, and link them to ecosystems. Spotify is a great example of a company that does this well, with its ability to profile its 200 million customers and deliver highly personalized experiences in the moment.

Conclusion

In conclusion, the age of relevance is here, and companies that fail to stay relevant risk losing out on billions of dollars in revenue. Personalization is the key to relevance in the age of AI, and companies need to embrace the new era of marketing by abandoning legacy thinking and focusing on the five Ps of marketing. By doing so, they can celebrate individuals with AI and deliver highly personalized experiences that keep customers coming back.