AI IRL Podcast Episode 34: How AI Can Be Used to Drive Customer Conversion
The world of customer conversion is complex. It has a lot of data inputs, a lot of unknowns. But there’s a lot of interest in using AI to drive customer conversion and there are some really exciting use cases out there.
Stephanie has been working in the industry for 15 years and is currently a Senior Principal Scientist at Altria.
How AI can help drive customer conversion
Models are so important.
Well, they provide a framework for data collection and analysis that can generate a priority. So, you know what it is that you’re looking to assess and the variables that you think are important, especially when you’re talking about customer engagement and improving conversion rate.
But the power of AI is also that you don’t have to consider this whole model a priority. The details of the model can actually be generated through the data, which allows for a bottom-up approach, as well.
And when you combine your knowledge of what you think is important as a top-down approach, and use the data’s bottom-up approach, too, you generate much more robust insights.
Insights that help you better understand which key levers to pull to increase those conversion rates.
“Combining your knowledge with the data’s bottom-up approach allows you to identify the levers you can pull to increase those conversion rates.” — Stephanie Plunkett
Let’s look at an example
About 15 years ago, Stephanie realized something:
Altria’s consumers didn’t really want the innovative products they were putting out into the marketplace. In fact, they kept asking for a different product that a competitor was making.
So, Stephanie and her team started collecting data.
They realized that consumers were drawn to this particular product mostly for reasons having to do with risk reduction. That opened the door for the team to start building a conversion framework and to leverage tools like AI to understand how best to communicate with those customers around risk.
The conversion model helped provide direction in deciding things like the best language to use to market to consumers or the best channels to use for that communication, ultimately helping Atria achieve the higher conversion rates they were looking for.
Additional benefits of using AI to improve conversion
“AI is just statistics rebranded.” — Stephanie Plunkett
So, the obvious benefit to using AI here is increased conversion rates.
But here are a few other benefits you can expect to see from this approach, as well:
- It allows you to amend or add to your model over time to make it more accurate at predicting a future state.
- Your model can be tweaked to focus on more macro or micro decisions, whichever you need to help further optimize your conversion rates.
- And leveraging a model like this allows you to provide the rationale for why conversion rates will be what you’re projecting them to be.
So, when it comes to conversion rates, AI can help you build the right model. That drives the right decisions. That predicts the positive results you’ll actually see in the marketplace.
The world of customer conversion may be complex.
But AI can help.
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