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Friday, September 9, 2022

AI-Powered Personalization

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.

 

Profile-of-One

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

Learn More

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.

Email: sales@cognitivescale.com

Phone: 1-855-505-5001

www.cognitivescale.com

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