Personalization is a force multiplier—and business necessity—one that more than 70% of consumers now consider a basic expectation. Furthermore, research shows that personalization most often drives 10 to 15% revenue lift (with company-specific lift spanning 5 to 25%, driven by sector and ability to execute). The more skillful a company becomes in applying data to grow customer knowledge and intimacy, the greater the returns. For digitally native companies that forge a data-backed, direct-to-consumer model, personalization isn’t just how they market, it’s how they operate.1
At CognitiveScale, we talk about the key capabilities of our Cortex Enterprise AI platform:
- AI Composition: development of valuable, scalable AI applications - or the infusion of AI into key business processes and systems of record and systems of engagement)
- AI-powered Personalization
- Business Goal Optimized AI
- AI Trust & Governance
In this article, we’ll dig deeper into AI-powered Personalization: the ability to build a rich contextual understanding of key entities within your enterprise - such as customers, products, policies, claims, and providers—through declared, observed and inferred knowledge - and then drive personalized insights with AI off of these entity profiles.
AI-powered Personalization Use Cases
There are a number of use cases for AI solutions based on personalized customer insights:
- Sales Acceleration & Customer Acquisition
- Boost lead quality and secure new customers
- Drive more relevant shopping experiences
- Higher conversion rates
- Customer satisfaction, business performance
- Customer Service & Engagement
- Engage with customers - either with professional services providers (e.g. clinicians, wealth management advisors, insurance agents, etc.) or with customer service agents - with much more contextual information and insights (e.g. model output for risk scores, predictions, etc.)
- Predict caller intent with agility and prescribe resolutions proactively in order to drive call center KPIs like lower average holding time
- Improve chatbot performance with more contextual client insights
- Deliver proactive service interventions in order to avoid calls
CognitiveScale’s Cortex Enterprise AI Platform Enables AI-powered Personalization
CognitiveScale’s Cortex Enterprise AI platform includes our Profile-of-One capability that is a key driver of personalized insights. Profile-of-One allows clients to create hyper-detailed customer profiles using declared (i.e., shared by customer) and observed data (i.e., customer interactions), and connect seamlessly with AI-powered models to predict behaviors and derive insights.
Cortex Profile-of-One Visualizer
Robust enterprise data is collected throughout the entire customer journey across email, web, social, service, demographics and more, and attached to a customer profile. Additionally, contextual reasoning enables real-time inferences and predictions at scale.
Personalization use cases are driven by profiles based on Profile-of-One. Profiles can represent any entity - a customer, member, patient, business, claim, etc. but in Personalization use cases, we usually are focused on the declared and observed data of people with highly contextual or personalized insights. Profile-of-One is much more than just a data repository - it is an engine that drives personalized insights via several key capabilities:
- Build a rich understanding of all entities including your customers and products
- Select the right intervention (e.g., personalized action) for the right actor at the right time via the right channel with evidence
- Learn which interventions are driving the best outcomes, the most engagement, higher conversion rates, and more
- Measure the impact of interventions on key performance indicators (revenue, costs, productivity, satisfaction)
- Assure integrity and trust around data privacy, model confidence, regulatory compliance to CCPA, GDPR, local regs (Learn more about Trust & Governance)
Personalization Insight Accelerators
Profile-of-One enables personalization insights with out-of-the-box capabilities - what we call Accelerators - to help clients develop AI applications more easily and quickly. Further, Profiles can include multiple of these insight engines:
- Classification: Predict entities belonging to categories.
- Example: Call likelihood for an insurance claim.
- Similarity: Find similarities between entities.
- Example: Finding similar profit centers for a commercial customer.
- Segmentation: Identifying and grouping similar entities.
- Example: Members that are prone to being delinquent on a loan or medical bill.
- Forecasting & Simulation: Simulate “what if” scenarios using synthetic data.
- Example: Time series forecasting of new admissions for Covid-19 patients.
- Feature Store: Use Profile-of-One to power different ML model training and inferences.
- Example: Classification model for fraud, waste and abuse in medical claims.
- Temporal Analysis: Query for changes to a profile over time.
- Example: How customer behavior or characteristics changed over time.
- Personalized Insights: Get insights and evidence based on learnings about a customer.
- Example: Detect agent fraud based on prior transactions and policy enrollments.
Cortex + Profile-of-One = AI-powered Personalization Engine
CognitiveScale’s Cortex Enterprise AI platform enables clients to:
- Attach multiple personalized insights (predictions, risk scores, rules engines, etc.) to one customer profile
- Drive omni-channel use of these insights across multiple channels via integration with systems of engagement (call center CRMs, IVRs, chatbots, proactive notifications, etc.)
- Orchestrate all of the necessary components (model outputs, algorithms, rules engines, skills, agents, data connectors, etc.) that it takes to deliver AI-powered personalization applications
- Develop AI-powered personalization applications better, faster and cheaper (see our AI Composition article)
- Achieve value from AI applications with Business Goal Optimized AI capabilities
- Trust and Govern their AI applications, especially those focused on personalized customer insights
To dig deeper into AI-powered Personalization, CognitiveScale has published a white paper on AI-powered Personalization Across the Customer Journey.
Contact us to explore how we can help your organization deploy and scale your AI application development initiatives.