These past 24 months have been quite the challenge for Australian businesses with the experiencing of irregular events such as the post-pandemic come down, employee cultural changes to work-from-home, rising inflation and the rapid onset of advanced technology, especially on the AI and Quantum fronts.
I have been reflecting on this and after speaking with numerous organisations and following changes in the market, I believe that many companies are facing a Watershed Moment regarding how they “do what they do”.
What I am seeing happen is that many businesses are seeking short-term performance hits because of the rising pressure to perform, and this is at the expense of long-term brand-building efforts. In turn, this sacrifice is leaving organisations open to the threat of new entrants or existing competition solidifying a deeper connection between customers, which ultimately leads to performance gains for those who are connected to consumers.
To simply headline it: organisations that will truly excel over the coming years, I believe will be those that master three key areas:
So, let’s take a step further and break this down.
Why It Matters
Data breaches have surged in Australia, with 527 notifications in the first half of 2024—the highest in 3.5 years.
Excerpt from Notifiable Data Breaches Report provided by Australian Government.
This highlights the importance of data transparency and effective customer data management. According to Twilio's 2024 CDP report, 91% of businesses using CDPs consider them crucial for personalisation and engagement.
The Challenge
With all the recent breeches into customer data, Data privacy concerns remain at the forefront for consumers and organisations. To maintain consumer trust, businesses must be transparent in data collection and usage to foster loyalty. According to research, 70% of consumers will share data if they understand how it’s being used. customers are more willing to share data when they trust the brand and understand how their data will be used.
Strategy for Success
Investing in Customer Data Platforms (CDPs) enables businesses to unify data and offer real-time, personalised customer experiences. CDPs improve marketing efficiency by enabling a single source of customer truth across all touchpoints.
Key call outs
Why It Matters
We all know that AI adoption is accelerating rapidly, with 53% of Australian professionals using advanced customer systems and AI to enhance operations and improve decision-making. This seems like a reasonable amount, considering the availability (open source) of tools in the market. This is allowing businesses to streamline repetitive tasks and focus on strategic growth. Sectors like retail and healthcare have already experienced a significant boost from AI.
The Challenge
Without clear alignment of AI with broader business goals, organisations risk inefficiency. Additionally, many companies unfortunately lack the internal expertise needed for effective AI implementation, because of limited resources, excessive bureaucratic process causing delays or lack of support to invest time and budget into advancing the AI practice.
Strategy for Success
Don't fear the robots - AI should complement human intelligence, optimising operations while maintaining customer-centricity. Predictive AI models enable businesses to anticipate customer needs and create personalised strategies that boost retention.
Also, be laser-focused with how AI is utilised...remember it is not a magic box, it is a sophisticated pattern predictor.
Key call outs
Why It Matters
As the way we interact with the world becomes increasingly automated, consumers value human connection even more than before. It is the intrinsic driver that solidifies strong long-term relationships. Those brand that can tell authentic, emotionally stories that resonant will naturally build deep relationships.
The Challenge
An over-reliance on automation can lead to impersonal interactions and a poor customer experience, which will ultimately lead to customer attrition. Brands must ensure tech is used to enhance—not replace—the emotional connection with customers. And this means a business must (deeply) know their customers' wants, needs and emotional triggers, and weave these into the customer experience. And one of the best ways to know a customer is to actual listen and take the feedback into the whole business...not just front-line workers.
Strategy for Success
Brands should treat storytelling as an evolving process, not a check-out transaction. There are so many folks sharing this fact, but the reality is that emotive, compelling and long-lasting brand story telling is as rare as hens' teeth (or at least I think so). Through a partnership with technology, such as using AI-driven data insights, brands can tailor their narratives to different customer segments while staying true to their values.
Key call outs
Excerpt from 2024 Edelman Trust Barometer Global Report.
If an organisation can land at the intersection of these three areas of effective data management, AI-enhanced operations, and authentic storytelling, they will therefore master the trifecta of performance, scale and connection. The next 6 to 18 months present a window of opportunity for organisations to act decisively, implementing technologies that enhance operations while still cultivating meaningful customer relationships.
To close out my thoughts here, I want to leave you with a data-driven-crystal-ball-opinion of how it will play out over the next 2 years. And yes, I do think the time horizon is that short.
The next 6 Months: Immediate Wins Through Data Management and AI
In the next six months, businesses who prioritise effective customer data management using a well-oiled Customer Data Platforms (CDPs), and blend this with targeted AI tools that scale operations, can expect to not just meet real-time personalisation but also real-time performance scaling.
Research shows that organisations with effective data systems can outperform others by up to 40% in customer experience. Plus, with the implementation of AI as a second in charge, operational tasks will be vastly streamlined.
Pair this with good ole fashioned storytelling (aligned to brand strategy of course) and you'll get connection and performance.
12 Months: AI Integration Meets Human Touch
Within a year, AI will be integrated into more customer-facing operations, such as predictive operations (e.g. demand scaling or autonomous scheduling) and personalisation at scale.
The organisations that successfully merge AI with personalisation will see significant efficiency gains while preserving customer trust. And one fantastic way to build trust (and quickly do it) is to be transparent and honest with consumers. According to research, 70% of consumers are happy to share data if they understand its use, making transparency crucial.
However, the challenge will be to balance AI with human oversight to maintain authentic interactions. This will be "integrating" lived experiences and subtle nuances that people bring to a brand interaction.
2 Years: Truly Sustainable Brand Growth
I believe that towards the end of 2026, it will be a very different commercial world we will be living in. Most organisations will have enabled employees to be augmented via AI...I don't believe this is full replacement of resource (Skynet yikes!) but a solid virtual enhancement. Think, all the tiresome administrative tasks are removed; complex task repetition shortened (maybe even removed); multitude of options to a problem presented, ready to be reviewed before scheduling implementation.
This world would have only been built for those organisations who have sorted systems - whether that's through system upgrades or more of a "phoenix-style" burn to the ground and AI will sort approach.
Where the winners will have separated from all others, will be those who have managed to not just automate systems and augment people, but those who have configured their brand experience to be almost perfectly consistent and targeted at all touch points, including the non-digital ones.
Overall, I believe (and hope) that for those who grasp all the technology advances will have all of the monotonous and inefficient aspects of business obliterated, leaving people free to focus on people.