Amazon’s Customer-centric Evolution—What Amazon’s predictive AI means to Manufacturers and Brands

Author: Rami Odeh 

We already know Amazon is a customer-centric company, and quite possibly the most customer-centric company in modern day history.

Amazon prides itself on focusing on the customer—period.  But even now, the company is evolving into something…more. Recent changes and announcements from Amazon indicate that the next era for Amazon is approaching—or in some cases, already here—focusing on predictive AI feeding its efficiency and profitability.

Let’s be honest, Jeff Bezos, Amazon’s CEO, is a visionary with a master plan and that somewhere in his R&D department, predictive ordering will be coming very soon.

Huh? Said differently, Amazon’s artificial I intelligence (AI) will use past data to predict your future needs.

Bezos Knows You More Than You Do.

Amazon knows its customers VERY well.  Some would argue that Amazon’s data on its customers is unmatched to any other company (or even any government agency).  Amazon’s AI has reached a point where it is able to make some bold moves based on the confidence of their data.   Amazon not only will predict what a customer will order before they even think about it, this predictive AI is essentially picking which products and ultimately brands will succeed before they even launch!

In other words, Amazon has so much confidence in its ability to predict the future, they will be able to tell brands notto launch products, and what products customers actually want before it even happens.  This can have some huge implications for brands in terms of production, demand planning, research and development, and even finances.  A brand can spend tons of money on R&D or production, only to find out that one of their main selling channels is rejecting the product because its predictive abilities already know the product will fail. Let that soak in for a second.

This ultimately means that Amazon is less of a level playing field for all sellers, and products success will be determined through predictive AI.  Evidence of Amazon’s confidence in their predictive AI can be found in the following events that lead us to believe that the is time is now.

Amazon Apple deal–  Apple is selling on Amazon directly, and Amazon is removing other distributors from selling Apple products.

Amazon One Vendor– Amazon is approaching supply chain in a new way where they are dictating if a brand will be a vendor or seller. 

Amazon CRaP Clean-Up– Amazon removing CRaP items from its catalogue, forcing manufacturers to refresh packaging, and kill production of less successful products.

Why AI?

We are entering an era where Amazon’s technology and algorithms are starting to do the thinking for the customer—as opposed to a customer having to choose brands, products and sellers on her own.  Amazon is confident with its own data to dictate products, pack types, sellers, vendors, fulfillment and even brands to be sold on its site.

Some would say that Amazon is going to a more traditional retailer model; I would argue that Amazon is doing its best Walmart meets The Matrix mash-up to create a mass retailer model that is infused with technology and data.

The bottom line?  Amazon has reached a point of confidence in their predictive AI where they are able to make supply chain decisions for manufacturers, and fulfillment methods in the name of customer-centricity.

Velocity. believes that there is common ground where Amazon, the customer, and a manufacturer can profit.  Want to talk about what you can do to be on top of the upcoming changes?  Reach out to us here with questions.

Using AI to Provide Shoppers With Guidance & Personalization

Artificial Intelligence is now being used by B&M retailers for everything from supply chain management to personalized apparel recommendations. Knowing that shoppers want guidance and personalization, smart retailers are using AI engines to create style pairings for shoppers, while also factoring things in like inventory levels and seasons. Then, these pairings can easily be applied to every shopper touchpoint. The result: sales. And, resulting analytics can then be used to refine the strategy and product mix.

TechDMC – February 5, 2018 from TPN on Vimeo.

Digital & Social Content Predictions for 2018

Digital and social content changes quickly! Brands must ensure their content is evolving just as quickly to meet consumer demand. We’ve been looking at the major trends. Here’s what you can expect to see:

VIDEO DOMINATES

Did you know that in 2017, 90% of all social content shared by consumers was video?1 Video must be woven into content marketing plans as consumers are overwhelmingly expecting this content type. Social platforms like Facebook have also placed a higher emphasis on video content, but its the marketers job to design video to grab attention within the first three seconds.

MORE EPHEMERAL CONTENT

Ephemeral content has been on the rise for three main reasons: 1) it’s mobile first, 2) it’s perceived as being more authentic given the content is often ‘scrappier’ and 3) it often sees higher engagement as consumers typically only have 24 hours to view it before it disappears. Snapchat pioneered this space, but Instagram and Facebook developed products to take advantage of the trend too.

INFLUENCER MARKETING GROWS

While Influencer marketing has been on the rise for some time, the space is maturing. We’ve seen the landscape divide into four main segments: Micro influencers (1k – 30k followers), the ‘Power Middle’ (35k – 250k followers), the Established Influencers 250k – 5MM, and Celebrity Influencers. Influencer marketing has become an important tactic as it ads authenticity to brand messaging and has more credibility with consumers.

ARTIFICIAL INTELLIGENCE GETS CONVERSATIONAL

Consumers have been reaching out to brands on social media with customer service inquiries for years, but Artificial Intelligence (AI) and chatbots have become so advanced that full dialogs can not only help answer common consumer questions, but can also help guide the shopper journey via a conversational experience.

AUGMENTED REALITY BRINGS NEW BRANDED EXPERIENCES

Pokemon Go put Augmented Reality (AR) in the spotlight, and the technology continues to grow as it has true potential to bring deeper, more immersive brand experiences to consumers. Nissan recently launched an AR Star Wars experience in their dealerships that enabled customers to view cars through their phone and highlighted Nissan’s Intelligent Mobility technologies.

Social Media Marketing Trends 2018

Written by: Andy Perez — TPN Content & Social Marketing Director

Highlights from Cannes: Keith Barry Brings Magic to Marketing

The highlight of the Saturday’s sessions at the Palais was Keith Barry: a hypnotist, mentalist and magician. What, exactly does magic have to do with marketing? The answer could be… everything. Ken Hertz from memBrain interviewed Barry focusing on the power of suggestion and the ways our subconscious minds can be persuaded from reality. Barry uses hypnotic techniques, psychology, and neuro-linguistic programming. The use of key words and guided prompts can alter another person’s reality, sensitizing them to other realities.

Perception is everything
For instance, Barry put the thought of himself in a bath, having a “good scrub” into the mind of an audience volunteer. Then he put her hand into a box and asked her to feel and identify an object inside. She guessed the object was a “squishy sponge”. It was actually a very hard rock. We couldn’t believe our eyes. He performed several versions of this trick—all ending with the same shocking results.

Not a mind reader, an observationalist
For his next trick, he asked us to think of a question about ourselves that no one could guess. He then began to guess the questions and then nailed each one—from a first girlfriend’s name to a make of a favorite car to ATM pin numbers! Barry maintains he is not a mind-reader, but a thought-reader and observationalist. His take: though we like to think we’re so unique and special, people are actually quite similar in many ways. Because 90% of communication is non-verbal, you can read people’s body language, movements, facial cues & micro-expressions to tell what what’s going on inside their heads. Think of it more as brain-hacking than a brain-reading.

How can we apply the tricks of the trade?
The million (or billion?) dollar question now is how can we, as marketers, employ Barry’s approach in our campaigns and content? Are we doing it already? The world of facial recognition and artificial intelligence has given us some advanced tools but are we using them correctly? Influencing consumer behavior and creating demand, love, and preference for products and services is only part of our remit. The key moving forward is to work our magic—translating our learnings into messages and experiences that sell.