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How to determine consumer segments using AI

One of the secrets that data analysis helps us uncover is that of consumer behaviour, a key factor in making any business to focus and grow. In a given business there are those pieces of information which we are in the know, but don’t have in-depth knowledge about, the “known-unknown’. In a real-life situation, “Do we know how frequent our customer is to our website or physical store? What is their preferred choice? When was the last they visited us?” In such scenarios, Artificial Intelligence is just the apt tool to unearth a plethora of information from multiple sources such as webpages, customer survey data, CRM databases, and visitors.

As a business owner, you will not only be able to optimize your communication by tweaking your campaigns but also have in-depth insights into customer behaviour. For example: Which url’s or sections are people visiting the most? What content do they like to read? How frequently are they visiting? How long do they stay on the website?

At Infinite Analytics, we identify customer interests, customer preferences, and other characteristics of consumer behaviour for you to direct your business on the right path. For example, there could be a business selling books by way of a subscription model. Users could sign up to receive mystery boxes i.e. packages with pre-selected books to read. When a user visits the website of this business, a simple on-boarding process such as a survey to map out their reading habits better can be designed to get answers relevant for ‘the kind of books to stock’ or ‘the most read genres’ or ‘preferred national and international authors’ among other things. Post this, a specialist can be engaged to help them decode the collected data and apply the results directly to their business model for maximum returns.

As marketers, we use our domain expertise to infer patterns from this data. Even a short questionnaire with 10 questions can generate thousands, if not millions of different combinations of answers. As it is humanly impossible to memorize and identify patterns from data of this kind, AI comes into action again. It becomes a typical case of artificial intelligence to identify how similar or dissimilar are the users’ responses by using the clustering algorithm. The algorithm can spot that there are three or four latent segments of customers based on the type of books they would like to read at leisure or while travelling, or even just to use as a reference while socializing.

In the same example, there could be two categories of people who buy books. One could be the corporate executives who seek knowledge from thought provoking books like “Team of Teams: New Rules of Engagement for a Complex World” and another group could be composed of ‘weekend readers’ for books like “The Blue Umbrella by Ruskin Bond”. As the business uncovers these data insights from the clustering algorithm, one will probably increase the returns on advertising spends to create a lookalike audience on Facebook, Instagram or Google ads. This will help reach out to similar users with awareness campaigns, instead of just relying on the generic ads. While one should adjust existing communication with the current customers, according to their cluster labels, it is also imperative to come up with messaging and imagery tailored to that segment. Thus, providing personalized content without being overbearing helps cut customer acquisition costs.

We hope this detailed post will help you uncover some of the ‘known-unknowns’ in your respective businesses. If you’d like to know more about any particular aspect of AI, tell us in the comments or contact us at contactus@infiniteanalytics.com

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wasim basir

marketing, board member

It’s most obvious in the digital media space, from click buys to personalized web experiences. For marketing, the AI journey has just kick-started, while in the tech sector it has been applied for a while now. We are still at an early stage where inroads are being made into AI content via chatbots and even some explanatory content creation but what will make anyone jump up and embrace it is when we will start seeing a lot of mainstream content being created by AI.

rich arnold

board member

Prior to joining Infinite Analytics, Richard served as the CFO of CrowdFlower, COO and CFO of Phoenix Technologies, as a member of the board of directors and chairman of the Audit Committee at Intellisync, and previously as CFO and executive vice president strategy and corporate development at Charles Schwab.

pravin gandhi

board member

Pravin Gandhi has over 50 years of entrepreneurial operational and investing experience in the IT industry in India. He was a founding partner of the first early stage fund India - INFINITY. Subsequently a founding partner in Seedfund I & II. With over 18 years of investing experience, he is extensively well networked in investment and entrepreneurial scene and is an active early stage angel investor in tech & impact space. Pravin holds a BS in Industrial Engineering from Cornell University, and serves on the board of several private corporations in India. He is on the board of SINE, IIT Mumbai Incubator.

Purushotham Botla

co-founder & cto

Puru has his Masters in Engineering and Management from MIT. Prior to MIT, he worked with Fidelity Investments building electronic trading products and high volume market data processing applications. He has completed his BE from VJTI, Mumbai.

deb-roy

Deb Roy

Executive Director, MIT Media Lab

Deb Roy is Professor of Media Arts and Sciences at MIT where he directs the MIT Center for Constructive Communication, and a Visiting Professor at Harvard Law School. He leads research in applied machine learning and human-machine interaction with applications in designing systems for learning and constructive dialogue, and for mapping and analyzing large scale media ecosystems. Deb is also co-founder and Chair of Cortico, a nonprofit social technology company that develops and operates the Local Voices Network to surface underheard voices and bridge divides.

Roy served as Executive Director of the MIT Media Lab from 2019-2021. He was co-founder and CEO of Bluefin Labs, a media analytics company that analyzed the interactions between television and social media at scale. Bluefin was acquired by Twitter in 2013, Twitter’s largest acquisition of the time. From 2013-2017 Roy served as Twitter’s Chief Media Scientist.

Erik Brynjolfsson

Board Member

Erik Brynjolfsson is the Jerry Yang and Akiko Yamazaki Professor and Senior Fellow at the Stanford Institute for Human-Centered AI (HAI), and Director of the Stanford Digital Economy Lab. He also is the Ralph Landau Senior Fellow at the Stanford Institute for Economic Policy Research (SIEPR), Professor by Courtesy at the Stanford Graduate School of Business and Stanford Department of Economics, and a Research Associate at the National Bureau of Economic Research (NBER).

Akash Bhatia

Co-Founder and CEO

Akash co-founded IA while studying for his MBA from MIT. Prior to MIT Sloan, he co-founded Zoonga. Before this, Akash was an engineer with Oracle in Silicon Valley. He has completed his M.S from University of Cincinnati and B.E from the College of Engineering, Pune.