Conf42 Internet of Things (IoT) 2024 - Online

- premiere 5PM GMT

New technologies in product communications

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Abstract

New technologies are revolutionizing product communications, from AI chatbots to IoT devices. These innovations enable real-time, personalized interactions, automate tasks, and provide deeper insights, enhancing customer engagement and loyalty.

Summary

Transcript

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Hi, everyone. Thanks a lot for joining my talk today. I hope you liked my intro from the Alps. It was quite cold there. My name is Alex. I'm a product owner in Yandex. Yandex is one of the largest tech companies globally, providing a wide range of services, including search engines, maps, transportation, e commerce, cloud computing, and AI technologies. I work in on delivery service. Today, I'm excited to share insights on how new technologies are transforming product communications. Drawing from my experience, scaling Yandex delivery and industry leading trends, few words about myself, over seven years in product communications contributed to the 100 growth of Yandex delivery service, over 18 million users served in four years. For now, Yandex. Delivery operates in 22 countries. So why adopting new trends in product communications matters? McKinsey report that 35 percent of Amazon's revenue is driven by AI based product recommendations. So the first reason is competitive advantage. Salesforce report that 72 percent of businesses using AI in communications report high customer retention. The second one. Customer expectations. McKinsey report that 80 percent of customers expect personalized experience in every interaction. Third, efficiency gains. HubSpot says that automating communications reduces campaign launch time by 30 percent and operational cost by 20%. Awesome. Data driven decisions. For example, Internet of Things devices generate 90 zettabytes of actionable data annually, driving better customer insights. And fifth future proofing Gartner reports that 96 percent of companies plan to increase AI and internet of things investments by 2025. Our discussion will cover four key areas, understanding what product communications are, exploring how AI driven tools enhance them and diving into advanced segmentation methods. Finally, we will look at what the future holds. Okay, let's start by defining what product communications are. Product communications focus on connecting customers with the value of your product. From emails to Internet of Things enabled notifications, each channel serves to educate, engage, and convert users. Here are some product communications examples. There are a large number of types of communications, like push notifications, product recommendations, social media, communications, and chatbots. By integrating customer data through CRM systems, these communications become more personalized and impactful. When we hear about CRM marketing. We associate it with different words like spam, loyalty program, email newsletter, CRM system, and WhatsApp messenger, for example. Let's figure out what CRM is. CRM is Customer Relationship Management. And the first thesis for today is that CRM communications are communications based on customer data. In general, any promotion is based on studying your audience. But CRM systems take this process to a new level. Imagine that you can build a sales strategy not on hypotheses and assumptions, but on real information about your customers. You know what, to whom, at what point, and through what channel to offer in order to achieve conversions. Let's look at how CRM helps to personalize communication and get more sales. Here are the channels commonly used. Email, SMS, push notifications, chatbots, and even Internet of Things. Effective product communications require selecting the right channels to reach your audience. From AI driven emails to Internet of Things enabled reminders on smart devices, the focus should always be on creating a seamless personalized experience. For example, a fitness tracker can send personalized reminders, keeping users engaged and boosting retention by 25%. Part two, how AI driven tools enhance communications. If any of you are planning to work in communications or are going to connect an agency or hire a manager, let's talk about stages in the creation of product communications. The communication process begins with data collection and segmentation. Move through strategy and creative development. and ends with testing and performance analysis. This structured approach ensures measurable outcomes. Large CRM companies are increasingly integrating AI technologies designed to assist or even replace some of the tasks traditionally performed by CRM marketers. These AI driven systems can analyze user data, propose hypotheses, create personalized communication strategies, and conduct A B testing, making them powerful tools in modern marketing. Let's look at some examples. Salesforce Einstein. Salesforce has implemented AI capabilities that automate tasks such as lead prioritization, customer segmentation, and personalized communication. Einstein can analyze user behavior and predict customer needs, enabling marketers to act proactively. Automation and self service technologies can give businesses across all industry industries a significant productivity boost, generate cost savings and an increase in customer satisfaction. Last year, customers using Salesforce service cloud tools, including automation and self service tools, such as AI powered chatbots, saw a 30 percent increase in customer satisfaction and more than 27 percent increase in agent productivity, customer retention and case resolution, very awesome. If you want to know more about Salesforce AI tools, please find the official Salesforce website, where you can find full information about the tools and also try them yourself. HubSpot AI tools are another example. HubSpot uses AI to power features like content generation, automated workflows and predictive lead scoring. The system helps marketers identify trends and optimize campaigns in real time. One more example of AI chatbot. HubSpot integrated AI chatbots into its CRM to automate early customer interactions. These bots analyze customer queries using natural language processing, NLP, deliver instant responses, suggest relevant products, and even generate leads for sales team. Let's look at two examples of successful chatbot integration. Sephora, the multinational beauty retailer, successfully implemented the chatbot in Facebook Messenger and Kik. The Sephora Virtual Artist chatbot offers personalized makeup recommendations, allows users to virtually try on products and provides beauty tips. Results. 11 percent increase in booking rates for makeover appointments, and every user spent 10 minutes engaging with the chatbot. Very nice. Luxury Escapes is one of the biggest luxury travel agencies in Australia and operates in 29 countries around the world. Over 2 million visitors would check Luxury Escapes website each month for new deals and offers, but their company wanted to improve the online customer experience. Their goal was to offer more personalization, a quicker way to find deals and easier notifications. To reach these goals, Luxury Escapes partnered with Master of Code to reinvent their shopping experience in the form of AI chatbot. Luxury Escapes achieved a 3x conversion rate using AI chatbots, generated 300, 000 in just 90 days. This underscores their ROI of investing in advanced segmentation tools. Part 3. Among other segmentations which are used in product communications. There can be a million of segmentations. The main thing is the business goal. Therefore, first of all, determine the purpose for which you need segmentation. On the slide, I gave three examples of such purposes. First one, increase the effect of communication through personalization. For example, women are more active users of retail and Yandex food. So we use this kind of segmentation in our communications. Second one, reduce the acquisition cost. For example, it's necessary to optimize expenses on a. Expensive channels such as SMS and the third reduce spam. Do not spam the user If there are a lot of products in your service, you can't tell everyone about everything. Let's look at the basic types of segmentation There are some of segmentation models demographic Like age, gender, income, education, profession, material status. Geographical, like country, region, city, district, and language. Psychographic, values, interests, incentives, pains, barriers. Technographic, devices type, operating system, applications. Behavioral, history of using products or service in your service. Traffic source. Interest based. Products or services that customer need or are interested in and value based the economic value of clients for business average bill. And there are examples. of two and three vector segmentations that we use in Yandex. RFM is created by recency, how long ago was the user's last visit to the product, frequency of the visits, and monetary, how much money did the user bring. And the second example is NPS plus value segmentations. Using these types of segmentations, you will be able to understand what kind of clients your business currently consists of. Here are three examples of using different types of segmentation. One of our main business tasks in Super App Yandex Go is converting taxi users into delivery users. We have a problem with this task. We cannot tech communicate with all users of the super app. There are two reasons for this. We need to separate communication with other services like Yandex food or Yandex market within the application so as not to spam users. And if we talk about ordinary individuals like you and me, the delivery service is almost never needed at the moment. It's needed if you forgot things. At work, for example, or need to send a friend, for example, a book. So we integrated ML segmentation to select only relevant users for communications who are most likely to need delivery in the near future. On the graph, you can see the number of users in the database, depending on the relevance for delivery by ML scoring. ML scoring is used in CRM marketing for forecasts. There can be forecast for the time of the user's next order, for the probability of churn, for products that may be interested to the client. And for the time of communication, for example, and in search of new ways to find relevant clients in Yandex Go, we made segmentation based on the points where the user is going by taxi or where he is at the moment, like geographical segmentation, imagine that you're going to the hardware store, you order a taxi and the moment while you are driving information appears in your application that if you have heavy purchases, order a cargo service, if you suddenly missed this communication. When you get to the point B in five minutes, you will receive a push notification with this information. And on the map in Yandex Go, there will be a track like this. Within the help of such segmentation, we were able to increase orders by 14 percent and this relevant. places. ML segmentation and Internet of Things data allow businesses to anticipate customer needs and provide value ahead of time. Internet of Things enables companies to personalize communications by leveraging real world usage data. Let's look at some examples. Smart speakers like Amazon, Echo, Google Nest. These devices collect behavioral data like music preferences or voice shopping habits to tailor marketing communications such as personalized offers via email or push notifications. It gives an impact in increasing email open rate by 50 percent due to hyper personalization. Fitness trackers like Garmin and Fitbit. These devices send personalized notification based on activity data, like reminders for workouts or sleeping improvement tips. Boosting user engagement. Impact is improved user retention rates by 25%. Part four, future of product communications. There are my recommendations, what to independently study. These areas will be actively developing next year. First one, generative AI like chatGPT. The second one, voice search and optimization. Third one, omni channel personalization. It's an approach that leverage algorithmic decision making. Powered by real time customer data across channels to deliver contextually relevant experience to an individual and any, all channels of their choosing. AR powered products. So Gartner reports that by 2025, 50 percent of product interactions will happen through voice enabled devices. Awesome. And to summarize, embracing new technologies is not just about staying relevant, it's about exceeding expectations, driving growth, and creating meaningful connection with your customers, communications drive results when based by actionable data, AI tools, streamline communication workflows, and enhance personalizations. Every segmentation strategy should align with a clear business goal. And that's all from me for now. Thank you very much for listening to my speech. I hope it was useful for you and you will enhance your product by communications. If you have any questions, please write to me and I will be very happy to answer. Bye bye.
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Aliaksandr Zhastkou

Product Owner @ Yandex

Aliaksandr Zhastkou's LinkedIn account



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