Value creation and data sovereignty in marketing automation

Digitalization has permanently changed customer interaction, and personalization and automation are ongoing trends. The challenge is to convey targeted value with the right content at the right point in the customer journey. Content is king in communication and marketing, but personalized content is the conqueror. Smart algorithms and artificial intelligence can make a difference here.

Digital customer interface and AI  

CRM and marketing platforms are currently popular and offer integrated solutions for a variety of use cases. Customers are served with personalized content and a large amount of data on customer interactions is collected. Artificial intelligence helps to make sense of data volumes and use this customer knowledge to respond to individual customer expectations in a more targeted manner. One example of this is algorithms that can determine the next likely step from a combination of customer data. This is particularly relevant when we look at the customer relationship up to the point of purchase, i.e. the sales funnel. The question is, how can I offer the customer added value at each step so that he or she continues on the path with my company?

At each step, it is important to gain useful insights and derive concrete measures. And this is precisely where the biggest challenge lies: when it comes to data collection in particular, companies can quickly succumb to actionism and produce volumes of data from which they can then make no sense at all. On the other hand, we find constantly changing customer expectations that have not (yet) been met - or that the company has simply not recognized.

After all, it's not about using algorithms and AI as an end in itself, but rather about maintaining targeted value or creating new added value in the interaction.

Valuable interactions from a human and economic perspective

For us humans, an interaction is valuable when relevant content is provided at the right time. For example, when I learn something, when something helps me move forward or when something calms me down, takes away my fear or simply passes the time. It can therefore be something more or less informative or entertaining - it all depends. From a business perspective, an interaction creates value when it generates a conversion, when customers take the next hurdle and give us their time, their data or their money, for example.

Human and economic interests are more or less in harmony with each other. Technological possibilities can mediate, but they also change customer expectations. We can see this particularly well, for example, in the ever decreasing willingness to wait. As a company, we therefore need a setup that enables us to constantly recognize customer expectations and not only react, but also act actively and proactively: Marketing automation with artificial intelligence.

Building technology and knowledge

In order to promote value creation in customer communication and interaction with the help of artificial intelligence, a step-by-step implementation plan along three development horizons has proven itself in practice with established companies: Create basis, expand, build.

In the first horizon, we create the technical and organizational basis. We define the roles along the customer journey or sales funnel and kick things off with an expandable system. The transition to the second horizon is achieved when sufficient experience has been gained in customer interaction to design personalized content. This is because in the second development horizon, we make full use of the available knowledge. Algorithms and AI are used to collect and use data in a more targeted manner and adapt content down to the individual level. Once we have succeeded in positioning products and services accurately, nothing stands in the way of expansion in the third horizon. In addition to the continuous expansion of the setup, completely new offers and business models can now also be tackled.

However, we often see companies hesitating in the first horizon, when setting up and trying things out, because they have too much respect for the second horizon with the organizational changes and cannot even imagine the third horizon. A typical challenge that we encounter can be described as follows: Our existing business comes under pressure, we have to test new offerings and business models, we have initial starting points, but we are actually not so sure, because although we have a lot of customer data, we have little real customer knowledge and we are also still working on digital competence. As a result, we often feel overwhelmed by all the issues mentioned.

Relying on open systems and data sovereignty

Here again, the approach along the three horizons helps, as there are clear decisions that need to be made in each one - especially when it comes to the question of the right tools.

In Horizon One, companies are faced with the choice of provider. The most prevalent marketing automation platforms are software-as-a-service (SaaS) providers with a subscription model for their cloud. The solutions promise simplicity, purchase and setup with just a few clicks, but are unsuitable for many companies in Europe that are concerned about data security. Because data is in the USA, or somewhere else. In addition, these solutions are more expensive in the long run. The price often increases with the number of customers. In contrast, there is free software on local servers that makes the problem with data obsolete and is free to operate. In Switzerland, we have been using the open source marketing automation platform Mautic for some time now.

For Swiss companies, the open model offers all the possibilities of automation, customizable and infinitely expandable. So the decision that companies have to make is: What do I want to build on? Can I afford the initial outlay for my own solution with local data and personalized integration? Or will a SaaS solution be enough for me in the medium term and is it not a problem for my company and my customers if I send data to the USA?

We can then derive two learnings from the collected data and make the system smarter. Do we know the first answers to the question: what value can we bring and how can we transport it, how can we create value for the customer? This allows us to expand algorithms and artificial intelligence and integrate additional tools. SaaS solutions also offer a wide range of integration options and interfaces. Deeper integrations are possible with an open source solution like Mautic. Mautic can be integrated into existing systems and business processes as required. This can make a difference for a company in terms of automation and personalization - and ultimately for the customer.

Those who have completed their tasks in horizon one and two ultimately have the necessary skills, tools and customer knowledge to be able to develop new offerings and new business models. Experience has shown that it is difficult to see the perspective as a qualitative rather than a temporal one when planning. There is a qualitative gate that needs to be created. Progress is tangible. It takes different lengths of time. We know it when we know it. Companies recognize when they have hit a nerve with their customer interactions and content, when not only better but stable results are achieved. This is precisely where new opportunities open up for marketing and communication departments in companies to develop their skills.

Opportunity for the position of marketing

From a marketer's perspective, there is potential for the further development of their own area in closer cooperation with product development or experience design along the three development horizons. This is because value-creating customer interactions are no longer just a supplement in the customer experience for the product or service, they are increasingly becoming the core business. The role of marketing in companies is changing accordingly. Marketing automation and artificial intelligence is not a one-off technology investment, but involves the targeted development and expansion of resources and skills.