So what does the A Stand for?
The companies that are thriving are the ones that get a lot of users and data – but what sets them apart is their Algorithm. Companies such as Google and Amazon use their algorithm to personally tailor the site or offer for every user. This makes them far more effective than companies that display the same site regardless of the data and (often uncurated) knowledge they have of their customers.
Amazon is the most effective at this – constantly looking at what you’re shopping for and displaying the most relevant products. They are also scouring the net to make sure they are providing the most competitive pricing.
Facebook, Instagram, Google are all strong and improve their algorithm all the time. Never resting to ensure they can get even the smallest incremental benefit by improving their algorithm.
Clearly it is easy to think about online companies when we talk about tailoring the offer or product. But this approach is just as relevant for all companies – creating dynamic segmentation to ensure you are always tailoring your offering or taking a service or product to customers with similar characteristics.
This isn’t new – it’s just with AI/Cognitive techniques and huge amounts of data – it can be done far more effectively and tailored to a target audience of one.
Not all new age companies are good at it – but that’s a story for another day.