November 20, 2017
Interviewed by: Privcap
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Machine Learning is Upending the Consumer Space

Experts from The Lucas Group give examples of how artificial intelligence is profoundly changing the game for consumer companies, and how legacy players that don’t get up to speed risk losing market share. 

Experts from The Lucas Group give examples of how artificial intelligence is profoundly changing the game for consumer companies, and how legacy players that don’t get up to speed risk losing market share. 

Machine Learning is Upending the Consumer Space

Jay Lucas, The Lucas Group:
Nimble competitors, some of whom may not even exist today, have the ability to adopt technologies, weave them together, apply them in ways that I think are truly innovative.

Many businesses have been relying on brick-and-mortar or business-to-business – very traditional channels of selling. And typically what we find is that there’s an opportunity to at least double, if not significantly increase much more greatly than that, the digital sales of a company.

So I’m thinking about the cosmetics business, and recently we were looking at a company that had taken, kind of flipped the model if you will.

Most cosmetics companies will start with a brick-and-mortar strategy and try and get into certain retailers, and then eventually try and envelop that with some degree of digital capabilities. We recently saw an example just the opposite. Where initially the company was built with a digital strategy, largely through Facebook advertising and algorithms that really targeted the right kind of consumers, particularly women.

So instead of knocking on the door of retailers and saying, hey, I’ve got this great product I’d like some shelf space. You’re now knocking on the door saying, “hey, I’ve got an eighty-million-dollar behemoth freight train, almost a rocket ship if you will, and I can really help generate sales in your retailer.”

So here’s a company that started on the digital side of the equation – built a real rocket ship of a propulsion going forward, and from that base was then able to get shelf space in retail in a way that’s taking market share away from some of the very large competitors.

Ian Knowles, The Lucas Group:
Brands and entrepreneurs are starting to get really, really good at optimizing their digital presence.

That’s where the machine learning, the deep learning, and the AI comes into play. Where you can more acutely target a consumer who might buy your product and therefore your conversion efficiency goes way up. If you’re sort of carpet bombing the consumer landscape and expecting to pick up folks to come buy your product, you don’t know how to curate the ad, to speak to the consumer. You’re not sure exactly who’s seeing it.

If you look at AI in practice or deep learning in practice, it allows you to assess that information very quickly and help you react to it in a way that can augment your conversion and ultimately your ROI.

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