Rajesh Jain

Published June 26, 2024

1

Email Future

Most email, CPaaS, and martech companies are facing growth, revenue, and profit challenges. So what can they do? I have described many ideas in previous essays. It is time to bring these together and add some more.

Let’s begin with some of the themes I have discussed in the past about how things are going to change in the future.

The 7 Levers for Email’s Exponential Expansion [More]

1. More Users: Attracting a broader consumer base to use email regularly through engaging features and use cases.
2. More Brands: Onboarding a larger number of businesses, especially smaller businesses and FMCG companies, to leverage email marketing.
3. More Usage: Increasing the frequency and touchpoints where brands communicate with customers through email.
4. More Opens: Driving higher email open rates through innovations like Atomic Rewards and AMPlets.
5. More Data: Collecting more zero-party data from customers to enable personalised and relevant email experiences.
6. More Actions: Boosting in-email conversions and actions by leveraging AMP technology and “inbox commerce” capabilities.
7. More Revenue: Transforming email from a cost centre to a revenue generator through innovative ad formats and monetisation strategies.

Ads in Emails: Some New Ideas [More]

The key to unlocking this future is to ensure that “Action Ads” generate response for the advertiser, relevance for the publisher (email list owner), rewards for the consumer, and revenues for the ESP… PII, Push, in-Place, and Payments are the 4 Ps which are at the heart of the E3 Ads… With E3 Ads, the business model of email can also be transformed – from “some CPM” to “Zero CPM”. E3 has the potential of being the single channel to address all use cases: acquisition, engagement/retention, and reacquisition.

WINdia: Multiplying India’s Email Market Opportunity [More]

To transform India’s email marketing landscape and drive 10X growth in the opportunity, three key “unlocks” are essential as part of Mission WINdia:

• A B2C “Killer App”: Developing a highly engaging, personalised, and utility-driven email-based application that becomes a daily habit for Indian consumers, much like the ubiquity of WhatsApp. This could take the form of a comprehensive knowledge and learning platform, a gamified daily content experience, or an intuitive personal assistant that seamlessly integrates with users’ lives.
• The “E3 Wrapper”: Implementing the innovative “E3” email packaging that incorporates features like Atomic Rewards, AMPlets, and AI-powered personalisation. This would create a must-open, high-engagement email experience that drives increased open rates, data collection, and in-email actions for brands.
• Monetisation and Incentive Alignment: Establishing a robust monetisation model that taps into the substantial “AdWaste” in India’s marketing budgets. By creating a new email-based media network that subsidises email delivery costs and shares revenue with brands, this unlock can align the economic incentives across the email ecosystem, making email marketing a rewarding and sustainable channel.

2

CPaaS Future

I worked with ChatGPT to write this section.

In the rapidly evolving landscape of Communication Platform as a Service (CPaaS), the shift from simple messaging to interactive, two-way communication channels has opened up a plethora of opportunities for brand-customer engagement and monetisation. Key channels like SMS, WhatsApp, and Rich Communication Services (RCS) are at the forefront of this transformation, driving inbox commerce and in-channel conversion by eliminating the need for clickthroughs. This evolution is akin to AMP in email, which has significantly enhanced user interactivity and engagement. Here’s how each channel is changing the game.

SMS: The Reliable Workhorse Gets Smarter

SMS, the cornerstone of mobile communication, has long been a reliable channel for businesses to reach customers. However, its potential was limited by its basic text format. Today, SMS is evolving to become more interactive and engaging through the integration of rich media and actionable responses.

In India, we are still stuck with 1-way SMS. In countries like the US, 2-way SMS has become the norm. As Attentive writes: “Two-way text messaging lets SMS subscribers have back-and-forth text conversations with your brand (and not the kind you might associate with a chatbot). This type of text message marketing breaks from the “no reply” world of more traditional marketing channels, so you can speak with your subscribers, not just at them. This type of text message can also help you better understand and connect with your customers on a 1:1 level. It removes friction from shopping and creates the curated experience customers are craving.”

Here is more on what SMS can do:

1. Rich Media Integration: Modern SMS can now include links to multimedia content, such as videos, images, and GIFs, enhancing the visual appeal and engagement level of messages. This capability transforms a simple text message into a compelling narrative that can capture customer attention more effectively.
2. Interactive Responses: Businesses can leverage SMS to conduct surveys, polls, and customer feedback in real-time. By enabling customers to respond directly to messages, brands can foster a two-way dialogue that feels personal and immediate.
3. Direct Commerce: With the introduction of SMS shortcodes and payment links, customers can now complete transactions directly within the messaging app. This seamless experience reduces friction in the purchase process, driving higher conversion rates and increasing revenue streams for CPaaS providers.

WhatsApp: Personal, Encrypted, and Business-Friendly

WhatsApp, with its vast user base and end-to-end encryption, has emerged as a powerful tool for businesses to engage with customers on a personal level. Its transformation from a simple messaging app to a robust business communication platform is driving significant opportunities for commerce and engagement. [Netcore has more.]

1. Business API: WhatsApp’s Business API allows companies to automate responses, send notifications, and offer customer support. This automation not only enhances efficiency but also ensures that customers receive timely and relevant information, improving their overall experience.
2. Interactive Elements: WhatsApp supports interactive elements like buttons and quick replies, making it easier for customers to navigate options and make decisions. For instance, a customer can browse a product catalog, add items to a cart, and make a purchase—all within the chat interface. [See WhatsApp Flows.]
3. WhatsApp Pay: The integration of payment solutions within WhatsApp has opened up new avenues for in-chat commerce. Customers can securely transfer money and make purchases without leaving the app, streamlining the payment process and boosting conversion rates.

RCS: The Future of Messaging

Rich Communication Services (RCS) is poised to revolutionize mobile messaging by offering a richer, more interactive experience compared to traditional SMS. As RCS adoption grows, it presents a significant opportunity for CPaaS companies to enhance engagement and drive commerce. [Netcore has more.]

1. Rich Media and Interactive Features: RCS supports high-resolution images, videos, carousels, and suggested actions, allowing brands to create visually appealing and interactive messages. These features make it easier for customers to explore products and services directly within the message.
2. Verified Sender and Branding: RCS messages can include branding elements and verification badges, which build trust and credibility. This ensures that customers feel secure interacting with businesses, leading to higher engagement and conversion rates.
3. Seamless Transactions: Similar to WhatsApp, RCS supports in-message payments, enabling customers to complete transactions without switching to another app. This seamless integration of browsing and purchasing within the messaging experience significantly enhances the likelihood of conversion.

Chatbots: Enhancing Impact Across Channels

To maximize the impact of these evolving CPaaS channels, businesses are increasingly integrating chatbots. These chatbots can operate across SMS, WhatsApp, and RCS, providing consistent and responsive customer interactions. Modern chatbots are not just rules-based; they are increasingly powered by Generative AI (Gen AI). This enables them to handle more complex queries, provide personalized recommendations, and maintain natural, human-like conversations. By leveraging Gen AI, chatbots can anticipate customer needs and deliver tailored solutions in real-time, further enhancing engagement and driving conversions.

**

The evolution of SMS, WhatsApp, and RCS into interactive, two-way communication channels is transforming the CPaaS landscape. By enabling richer, more engaging experiences and facilitating seamless transactions, these channels are creating new profit pools for CPaaS companies. Brands can now leverage these advancements to build stronger customer relationships, drive higher engagement, and increase revenue. The integration of advanced chatbots across these channels further amplifies their impact, making interactions more dynamic and effective. As these technologies continue to develop, the potential for innovation and growth within the CPaaS ecosystem remains vast.

3

Martech Future – 1

The 7½ Futures of Martech Companies [More]

Here are the future possibilities that I see for B2C-focused martech companies:

1. Specialised Point Solutions
2. Full Stack (including CPaaS and Channels)
3. Progency
4. Email 2.0 (creating and controlling a channel)
5. MarCo (martech consolidator)
6. Digital Twins
7. Mirror Worlds
8. B2C Attention Platforms (the ½ idea)

… The 7½ futures envisioned promise a profoundly different reality. By recasting martech as the linchpin for maximising customer lifetime value and minimising bloated acquisition expenses, they pave the path to explosive profitable growth. Alignment with value generation makes martech indispensable, not a ‘nice to have’ discretionary line item. Building deeper, mutually beneficial relationships grounded in trust and transparency similarly counters the infringement of privacy and loss of control associated with adtech dependence.

New SaaS: Services, AI Agents, Sharing [More]

Three ideas together become the new foundation for “New SaaS” (beyond just the cloud-based software):

• Services: which bring in people into the product proposition to ensure continuous monitoring and improvement. This component integrates human expertise and intervention into the digital offering, enhancing the adaptability and personalisation of the software. It ensures that the product not only meets the current demands of users but also evolves proactively through continuous feedback and improvement loops. This human-in-the-loop approach guarantees that the software remains at the forefront of user needs and industry trends.
• AI Agents: which help automate conversations, tasks, and ‘next best action’ predictions. These autonomous, intelligent systems empower the platform by automating interactions, streamlining tasks, and providing predictive insights for the customer journey. By harnessing the capabilities of AI agents, the software transcends traditional functionalities to offer more intuitive, efficient, and personalised user experiences. This not only elevates the utility of the software but also optimises user engagement and satisfaction.
• Sharing: a “progency” business model, combining product and agency, to price based on performance and outcomes. It redefines the economic relationship between service providers and their customers. By adopting a performance-based pricing strategy, the focus shifts towards shared success and outcomes. This ensures a more aligned partnership where the contributions of the software directly impact the client’s bottom line, fostering a collaborative environment geared towards mutual growth and achievement.

Co-Marketer: Martech meets AI [More]

Think of the co-marketer not as a tool, but as a person. Co-Marketers like Raman will take on goals rather than do simple request-reply chats. This is the next generation of AI where an AI agent can spawn and supervise other agents, much like a manager can. From segmentation to content to channel orchestration, AI agents can do the work of a marketing department to assist the CMO. What the CMO needs to do is to give the broad direction. For example, the CMO could say, “For my Best Customers, I need to ensure 20% revenue growth and an increase in frequency of purchase.” The Co-Marketer then should be able to identify the right products and the persuasion messages specific to each individual (N=1) to work towards achieving the outcome. For this, the co-marketer will need to coordinate with a Digital Twin for every customer.

4

Martech Future – 2

How Agentic AI will Transform Digital Marketing [More]

The rise of Agentic AI heralds a transformative era for marketing departments and Chief Marketing Officers (CMOs), ushering in the era of “Co-Marketers” – AI-powered co-workers that revolutionise the way marketing strategies are conceived, executed, and optimised.

At the core of this revolution lies the ability of Agentic AI systems to process and analyse vast troves of data, including customer information, market trends, campaign performance metrics, and real-world events. By leveraging advanced ML algorithms and large language models (LLMs), Co-Marketers can extract meaningful insights from this data, enabling them to make data-driven recommendations and optimisations that drive marketing strategies – and do so autonomously and adaptively.

…”Digital Twins” [are] AI-driven virtual representations of individual customers that possess a profound understanding of their behaviours, preferences, and interactions.

They are not mere static customer profiles; they are dynamic, continuously evolving models that mirror the real-world customer’s journey with a brand. Powered by ML algorithms, large customer models (LCMs), and vast troves of customer data, Digital Twins become living embodiments of the customer experience.

…Digital Twins play a crucial role in the “mirror world” – a simulated environment where they can interact with the brand’s Co-Marketer, an AI-powered marketing assistant. Within this virtual playground, an infinite number of scenarios and hypotheses can be tested, enabling the Co-Marketer to identify the optimal strategies and personalised experiences for each individual customer.

…Agentic AI, manifesting as Co-Marketers and Digital Twins, promises to unlock $250 billion in AdWaste, marking a pivotal shift toward profitability for consumer-facing brands currently battling high customer acquisition costs. This technological leap will simplify martech to the ease of adtech, propelling marketing departments into a new era of efficiency and strategic depth. For martech providers trapped in a fiercely competitive market, Agentic AI offers a pathway to untapped profit pools through innovative “4S” business models.

Generative Journeys: Digital Marketing’s New Core [More]

Generative journeys represent a leap forward in martech, harnessing the power of AI to create dynamic, personalised paths for each customer. Rather than following predefined rules, generative journeys use AI to analyse customer behaviour in real-time and generate the next best action or message to guide them toward the desired outcome. Such a system uses AI-driven insights to accelerate the “transaction moments” in a customer lifecycle, from awareness to purchase and beyond, effectively enhancing the customer’s engagement and the overall effectiveness of marketing strategies.

…Generative journeys not only revolutionise how we interact with each customer but also dramatically enhance the precision and effectiveness of digital marketing strategies. By continuously refining and personalising each step of the journey based on real-time feedback and predictive analytics, generative journeys pave the way for unparalleled customer engagement, conversion, retention, and satisfaction.

…Generative journeys represent the fourth generation of martech platforms. The first generation focused on point solutions, while the second generation saw the consolidation of these solutions into unified platforms to provide a single view of every customer. The third generation introduced AI-ML and Generative AI for enhanced personalisation and efficiency.

Now, the fourth generation is poised to leverage Agentic AI – the combination of Co-Marketer, digital twins, LCMs, and a “mirror world” where simulations can be run at scale. This will enable a “department of one” to engage with a “segment of one” (N=1), delivering truly personalised experiences without the need for an army of marketers.

CEO Memo: How Agentic AI can Power the Profipoly Quest [More]

Customer relationships [will change] in a world where Agentic AI can enable large customer models, mirror worlds, digital twins for every customers, a Co-Marketer, and generative journeys.

…Agentic AI will help…accomplish the intermediate objectives of better discovery, engagement, and loyalty en route to maximising customer lifetime value.

• N=1 Hyper-personalisation, which ensures that the recommendations and pathways are unique for every customer
• Agent-to-Agent interaction, which creates efficiency in the engagement process, by focusing on the best options and filtering out the irrelevant
• Value-maximising journeys, which are composable, omnichannel, generative, shoppable, to ensure faster conversion

5

Opportunities – 1

What are the new profit pools that can be tapped?

Email Companies

There are three large opportunities that email companies can tap: ads in emails, transaction fees from inbox commerce, and services.

Ads in Emails: As I have written repeatedly in previous essays, half of the spend on digital advertising is being wasted on account of wrong acquisition and reacquisition. Ads in emails can mitigate this waste and address other limitations of online ads with its 4 Ps: PII, Push, in-Place, and Payments. “Action Ads” in emails eliminate the friction of clicking through to a landing page. By solving the email open problem with innovative formats like E3, email companies can tap into the $250 billion AdWaste by enabling targeted acquisition and reactivation. Integrating new ad formats (eg. one-tap subscription to 7-day brand quiz microns) can create value for advertisers, relevance for publishers, and rewards for consumers, aligning economic incentives across the email ecosystem.

Inbox Commerce: The era of inbox commerce is coming. Search, shopping carts, recommendations, and payments can all be conducted within the email, transforming it into a platform for direct transactions and purchases. These shoppable can be monetised based on outcomes rather than traditional CPM models.

Email Agency: One of the biggest challenges for marketers is the friction, costs, and delays associated with creating emails. Similar to how companies outsource non-critical functions to external service agencies, B2C companies should consider partnering with a “progency” to take over the email function. Such an agency could be incentivised based on results, ensuring a focus on performance and outcomes. This model can significantly reduce the pain points associated with email marketing, providing a more efficient and effective solution for businesses and a new revenue stream for email companies. [Also see Email 2.0 Progency: eCommerce’s Profit Powerhouse.]

CPaaS Companies

Channel Consolidation: Many businesses currently use separate service providers for email, SMS, WhatsApp, and RCS, thus fragmenting revenues for CPaaS companies. The opportunity lies in offering a “Unichannel” approach within the CPaaS space, unifying these channels under the principle of “one customer, one message.” An integrated customer journey ensures that customers receive a cohesive and efficient communication experience, avoiding multiple messages from different channels. For instance, an SMS or RCS message should only be sent if the customer does not respond to an email, which is the most cost-effective channel (after app push notifications). WhatsApp, on the other hand, is more effective for bottom-of-funnel conversions. By offering a single omnichannel API and intelligent conversation management, CPaaS providers can streamline communication strategies and significantly enhance customer engagement. This unified approach not only improves the customer experience but also increases the revenue potential for CPaaS providers by offering a comprehensive solution that integrates all communication channels seamlessly. To maximise profitability, CPaaS companies should focus on measuring gross margin rather than topline revenue, given the typically low margins in the CPaaS industry.

Conversational Intelligence: CPaaS companies have the opportunity to evolve beyond merely providing pipes by incorporating advanced conversational intelligence. By integrating chatbots and AI-driven interactions, CPaaS providers can enhance the quality and effectiveness of customer communications. This approach allows for more personalised, efficient, and meaningful conversations with customers. Instead of charging traditional platform fees, CPaaS companies can adopt outcome-based pricing models. This means that pricing is tied to the results achieved, such as successful customer engagements, conversions, problem resolution, or other key performance indicators. This model aligns the interests of CPaaS providers and their customers, incentivising the delivery of high-quality, result-oriented conversational experiences.

Advanced Analytics and Insights: CPaaS companies can significantly grow their profit pool by offering advanced analytics and insights as a value-added service. By leveraging the extensive data generated from various communication channels, CPaaS providers can deliver detailed analytics that help businesses understand customer behaviour, preferences, and engagement patterns. This includes in-depth customer insights to identify trends, predictive analytics to anticipate customer needs, identifying customer affinities by tracking clicks and actions, and real-time metrics to measure campaign performance. Additionally, precise customer segmentation and targeting can improve the relevance and impact of communications. These advanced analytics enable businesses to optimize their marketing strategies, enhance customer experiences, and make data-driven decisions. By providing these valuable insights, CPaaS companies can enhance their service offerings and create a new SaaS revenue stream, driving growth and profitability.

6

Opportunities – 2

Martech Companies

Unistack Consolidation: Martech solution providers can boost their revenues and profitability by offering a unified stack, just as CPaaS companies improve theirs by consolidating channels to promise “one customer, one message.” This “unistack” approach can be pitched as “one company, one partner.” The advantages for buyers are numerous. Fewer point solutions reduce spending and integration friction, while ensuring data is not siloed, thereby enhancing the efficacy of AI. Additionally, a unified stack simplifies the marketer’s workflow by eliminating the need to interact with multiple interfaces and dashboards. This streamlined experience can lead to higher MRR for martech companies by making marketing teams more productive and end customers getting better experiences.

AI-First Platform: Martech companies can significantly enhance customer Lifetime Value (LTV) by evolving from predictive and generative AI to agentic AI. This advanced approach involves transforming the Customer Data Platform (CDP) into a Large Customer Model (LCM), enabling the creation of digital twins and a co-marketer. These components can work together in a “mirror world” to drive “generative journeys,” resulting in N=1 hyper-personalisation for every customer. This next-generation software platform provides a competitive edge, allowing martech companies to deliver unprecedented engagement, conversion, and retention – thus eventually reducing the need for wasteful adtech spending, and enabling brands on their “profipoly quest.”

1S to 4S Business Model: Traditionally, martech companies have focused solely on delivering software via the cloud, a “1S” business model. However, mid-market and enterprise buyers often find that maximising value from the software requires significantly more effort, leading to dissatisfaction and frequent platform shopping and switching. To address this, martech companies can evolve into a “4S” business model by adding strategy, services, and (revenue/profit) sharing. Offering strategic consulting helps clients develop and implement effective marketing plans that fully leverage the software’s capabilities. Providing managed services, including customisation, ongoing support, and optimisation (especially with AI models), alleviates the burden on clients and ensures maximum value. Implementing performance-based pricing, where martech companies have skin in the game, aligns interests and incentivizes optimal outcomes. By incorporating these elements, martech companies can become indispensable and invincible.

**

To conclude, here is a summary of the 9 ideas discussed:

Email Companies

1. Ads in Emails: Mitigate digital advertising waste and create value through innovative ad formats like “Action Ads” that align economic incentives across the email ecosystem.
2. Inbox Commerce: Transform email into a direct transaction platform, enabling seamless shopping experiences and monetising through outcome-based models.
3. Email Agency: Create a “progency” to handle email marketing functions, reducing friction and costs while focusing on performance-based outcomes.

CPaaS Companies

1. Channel Consolidation: Adopt a “Unichannel” approach to unify communication channels, improving customer experience and increasing revenue potential with a single omnichannel API.
2. Conversational Intelligence: Incorporate advanced AI-driven chatbots to enhance customer interactions and adopt outcome-based pricing to incentivise high-quality conversational experiences.
3. Advanced Analytics and Insights: Provide detailed analytics and insights to help businesses optimise marketing strategies, enhancing customer engagement and creating new SaaS revenue streams beyond message-based pricing.

Martech Companies

1. Unistack Consolidation: Offer a unified stack to reduce integration friction, enhance AI efficacy, and streamline workflows, resulting in higher MRR.
2. AI-First Platform: Transform CDPs into Large Customer Models, creating digital twins and co-marketers to deliver hyper-personalised customer journeys and reduce AdWaste.
3. 1S to 4S Business Model: Evolve from software-only offerings to include strategy, services, and revenue/profit sharing to become an indispensable partner.

**

Email, CPaaS, and martech companies must reinvent themselves to thrive in the future. The era of easy money and unlimited spending is over, but challenges like poor data quality, friction-filled funnels, and AdWaste persist. By reorienting towards an “EnCoRe” (engagement, conversion, retention) future, these tech companies can pave the way for exponential, forever profitable growth – embarking on their own “Profipoly Quest.”

7

Additional Ideas

I asked the AIs for additional ideas that I may have missed.

ChatGPT

Email Companies

1. Subscription-Based Content and Services:

1. • Description: Offer premium subscription-based content and services within emails, such as exclusive newsletters, reports, or personalized consulting.
   • Opportunity: This creates a steady revenue stream and adds value for subscribers who are willing to pay for high-quality, exclusive content.

2. Partnerships and Integrations:

1. • Description: Form partnerships with complementary services (e.g., CRM systems, e-commerce platforms) to offer integrated solutions.
   • Opportunity: Bundling services can enhance functionality and attract more customers, creating additional revenue channels through partnership deals and integrations.

CPaaS Companies

1. White-Label Solutions:

1. • Description: Provide white-label CPaaS solutions that other companies can brand as their own.
   • Opportunity: This expands the customer base to include businesses that prefer branded solutions, offering a new revenue stream through licensing fees.

2. Security and Compliance Services:

1. • Description: Offer enhanced security and compliance features as premium services, especially for industries with strict regulations (e.g., finance, healthcare).
   • Opportunity: By addressing critical security and compliance needs, CPaaS providers can attract high-value clients and justify higher pricing tiers.

Martech Companies

1. Customer Experience (CX) Platforms:

1. • Description: Develop comprehensive CX platforms that go beyond marketing to include customer support and success features.
   • Opportunity: By offering tools that improve overall customer experience, martech companies can tap into budgets allocated for customer service and retention.

2. Training and Certification Programs:

1. • Description: Create training and certification programs for users of martech solutions, ensuring they can maximize the platform’s potential.
   • Opportunity: This not only provides an additional revenue stream but also increases customer satisfaction and retention by empowering users with knowledge and skills.

3. Marketplace for Third-Party Apps and Extensions:

1. • Description: Establish a marketplace where third-party developers can offer apps and extensions that enhance the martech platform’s capabilities.
   • Opportunity: This can drive additional revenue through app sales, subscription fees, and a share of third-party revenues.

Claude

Privacy and Data Protection as a Differentiator: With increasing concerns about data privacy and security, email, CPaaS, and martech companies that prioritize and guarantee robust data protection measures could gain a competitive edge. By positioning themselves as trusted guardians of customer data and offering advanced privacy features, these companies can attract privacy-conscious businesses and consumers, potentially opening up new market segments and revenue streams.

Ecosystem Partnerships and Integrations: To further enhance their value proposition and expand their profit pools, email, CPaaS, and martech companies could explore strategic partnerships and integrations with complementary platforms and services. For example, integrating with popular e-commerce platforms, CRM systems, or social media networks could enable seamless data flow, enhanced functionality, and improved customer experiences. Such partnerships could also open up opportunities for revenue sharing, cross-selling, and joint go-to-market strategies.

Vertical-Specific Solutions: While your essay focuses on broad strategies applicable across industries, there might be an opportunity for email, CPaaS, and martech companies to develop specialized solutions tailored to specific verticals. By deeply understanding the unique challenges and requirements of sectors like healthcare, finance, retail, or education, these companies can create targeted offerings that address industry-specific pain points and deliver greater value. Vertical-specific solutions could command premium pricing and foster long-term customer loyalty.

Gemini

Email

• Micropayments and Subscriptions: Explore ways to integrate micropayment functionalities within emails, allowing users to directly pay for content, subscriptions, or services without leaving their inbox. This could be particularly relevant for newsletters, educational content, or digital products.
• Focus on Developer Tools: Cater to developers by offering robust email APIs and developer tools that enable seamless integration of email functionalities into various applications. This could incentivize broader adoption of email features within other platforms.
• Verticalization and Specialization: Consider email solutions tailored to specific industries or customer segments. For example, healthcare email marketing could prioritize HIPAA compliance or appointment reminders.

CPaaS

• Focus on Niche Markets: Identify and cater to niche markets with specialized communication needs, such as healthcare institutions needing secure patient communication channels or logistics companies leveraging SMS for real-time delivery updates.
• The Rise of Voice: Explore the potential of integrating voice capabilities into CPaaS platforms, offering features like voice-based authentication or interactive voice menus for customer interactions.

Martech

• Focus on Marketplaces and Integrations: Develop martech solutions that integrate seamlessly with popular e-commerce marketplaces and marketing automation platforms. This could unlock new user segments and streamline marketing workflows.
• Low-Code/No-Code Solutions: Make martech solutions more accessible by offering low-code/no-code options that empower businesses with limited technical expertise to leverage marketing automation and data-driven insights.

Cross-Sector Collaboration

• Bundled Services: Consider bundled service offerings that combine email marketing functionalities with CPaaS features or integrate martech platforms with CPaaS solutions. This could provide a more comprehensive customer experience and create attractive propositions for businesses.
• Joint Marketing Initiatives: Encourage collaboration between email, CPaaS, and martech companies through joint marketing initiatives. This could raise awareness and drive customer acquisition across the sectors.

Summary

Since I used ChatGPT and Claude to help with some of the writing, I asked Gemini to summarise the memo.

Dear CEO,

The winds of change are upon us. AI is no longer a futuristic concept; it’s a revolution poised to disrupt traditional customer interactions. Businesses that fail to adapt risk being left behind.

This memo outlines the power of Agentic AI – your key to conquering “Mount Profipoly,” a future of exponential growth and customer loyalty.

The Rise of Agentic AI:

Imagine a world where every customer interaction is personalized, every touchpoint feels meaningful, and loyalty flourishes. Agentic AI unlocks this reality.

• Hyper-Personalization: Forget broad segmentation. Large Customer Models (LCMs) leverage vast data sets to understand individual needs and preferences.
• Agent-to-Agent Interaction: Co-Marketers, your AI-powered marketing assistants, collaborate with Digital Twins – virtual representations of each customer – to identify the best communication channels and offers.
• Value-Maximizing Journeys: Generative Journeys, powered by AI insights, create seamless, omnichannel experiences that convert faster and build enduring loyalty.

The Profipoly Quest: Three Stages to Customer Mastery

Agentic AI empowers you to excel in three crucial customer stages:

1. Discovery: N=1 personalization takes center stage. LCMs identify individual needs, allowing Co-Marketers to deliver targeted content and recommendations, fostering stronger connections from the outset.
2. Engagement: Forget generic broadcasts. Co-Marketers and Digital Twins create a “hotline” – a frictionless flow of personalized messages and interactions that keep customers engaged and valued.
3. Loyalty: Go beyond loyalty programs. Agentic AI anticipates customer needs, offering proactive support and creating moments of delight that foster long-term brand advocacy.

Taking Action: Your First Steps

1. Partner with an AI-First MarTech Expert: Find a specialist who understands the Agentic AI ecosystem and can guide your implementation.
2. Appoint a Chief AI Officer (CAIO): Ideally, your CMO can spearhead this transformation. A CMO who embraces a “Chief Profits Officer” mindset is best positioned to translate customer insights into strategic growth.
3. Assemble a Dedicated Team: This dedicated group, working with the CAIO and other CxOs, will champion the Profipoly journey and ensure its success.

Seize the Day!

Don’t let the “business as usual” mentality hold you back. The time to act is now.
Agentic AI is the key to unlocking exponential growth and customer loyalty. Embrace this transformation, become a leader in the AI revolution, and redefine your business legacy.

The future is here. Will you seize it?

Putting It Together

Dear CEO,

Discovery, Engagement, and Loyalty represent three critical stages of the customer journey. By leveraging Agentic AI at each stage, you can create a customer experience that is personalised, frictionless, and value-enriching.

This experience is powered by the continuous learning and optimisation of your AI universe. Every interaction, every data point, is an opportunity to better understand your customers and improve your service. Over time, this creates a powerful flywheel effect – better experiences lead to more loyal customers, which lead to more data and insights, which lead to even better experiences.

Implementing this vision will require a strategic approach. It means investing in the right AI capabilities, from your LCM to your Digital Twins to your Co-Marketer. It means rethinking your customer journey from the ground up, looking for opportunities to inject AI-powered personalisation and value at every step. And it means fostering a culture of kaizen (continuous learning) and customer-centricity.

But the potential rewards are immense. By harnessing Agentic AI to drive Discovery, Engagement, and Loyalty, you can not only achieve your immediate objectives, but also set your business up for long-term, sustainable growth. You can build a brand that customers love, trust, and advocate for.

**

So, how do you bring this world to life? Here is a 3-step approach.

1. You will need an AI-first martech partner who can help you implement Agentic AI. This partner will bring with the foundational building blocks.
2. Internally, you need to designate a “Chief AI Officer” who can interface with internal teams as well as the martech partner. Ideally, this role can be done by the CMO because it involved customer-linked activities. For this, a CMO willing to make the leap to a “Chief Profits Officer” mindset is needed.
3. You should also set up a small team in the CEO’s office to work with the CMO and other CxOs to bring this transformation project to life. It must become one of your top three priorities, if not the most important. This is the project which will define the future of your business and your legacy.

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Agentic AI is what can help you in the Profipoly Quest. The hardest part will be to get started by rising above the day-to-day BAU (business as usual) activities. It is only when you recognise that this technological revolution is a make-or-break for your business that you will act with the urgency that is needed. All you have to do is to look at past technological revolutions, and how the incumbents were dethroned by disrupters. You have a chance to be the disrupter to your own incumbent business – because someone else with an AI-first mindset is already plotting to do that.

As a CEO, this is the opportunity before you. To not just adapt to the AI revolution, but to lead it. To create a business that is truly customer-centric, data-driven, and future-ready. The journey won’t be easy, but it will be rewarding. And with Agentic AI as your partner, you have the tools and the insights to make it a success.

In the words of Robin Williams in “Dead Poets Society”: “Carpe diem. Seize the day.” This quote encapsulates the essence of the opportunity before you. Just as the students in the film were encouraged to make their lives extraordinary, you have the chance to make your customers’ lives and your business extraordinary. Seize this day, this moment, to embark on a transformative journey that will redefine your business and your legacy.

Imagine a future where every customer interaction is tailored, every engagement is meaningful, and every relationship is built on trust and value. This is the future that Agentic AI can help you create. A future where your business doesn’t just survive but thrives in the face of technological disruption.

So, do not wait for tomorrow. Take the first steps on this journey of transformation. Harness the power of Agentic AI to redefine what’s possible for your customers and your business, and multi-maximise every customer’s lifetime value. Conquer Mount Profipoly!

The future is here, and it’s waiting for your leadership. Will you seize it?

Three Objectives

Dear CEO,

Agentic AI will help you accomplish the intermediate objectives of better discovery, engagement, and loyalty en route to maximising customer lifetime value.

N=1 Hyper-Personalisation for Discovery

In the age of Agentic AI, customer discovery goes beyond simple segmentation and targeting. It’s about understanding each individual customer at a deep, granular level. This is where your Large Customer Model (LCM) comes into play.

Your LCM, powered by vast amounts of customer data, builds a rich, dynamic profile of each customer. It understands their unique needs, preferences, and behaviours. This understanding allows your Co-Marketer to generate highly personalised content, recommendations, and offers that are tailored to each individual.

Imagine a customer who has shown interest in eco-friendly products. Your Co-Marketer, armed with this insight, can proactively reach out with a personalised selection of your most sustainable offerings. Or consider a customer who has been struggling to find a product that meets their specific needs. Your Co-Marketer can engage them in a conversation, understand their requirements, and guide them to the perfect solution.

By making the discovery process more personalised and interactive, you can attract more customers, build stronger connections, and set the stage for a long-term relationship.

Agent-to-Agent Interaction for Engagement

The next challenge is to keep them customers engaged. This is where the power of Agent-to-Agent interaction and Generative Journeys comes into play.

With Agentic AI, engagement isn’t just about sending the right message at the right time. It’s about creating a seamless, adaptive, and value-adding experience across every touchpoint. Your Co-Marketer tests messages with the customer’s Digital Twin, and then engages the real customer with the right content and recommendations to create a “hotline” where no message from your brand is ignored.

Imagine a customer who has just made a purchase. Your Co-Marketer can immediately reach out with a personalised onboarding guide. If the customer has a question, your AI agents can collaborate to provide an instant, context-aware answer. If there’s an opportunity to upsell or cross-sell, your Co-Marketer can make a tailored recommendation.

Throughout the engagement journey, your LCM and Co-Marketer are continuously learning and optimising. They’re testing different approaches in the Mirror World, measuring results, and adjusting in real-time to maximise value for the customer. This dynamic, frictionless, and personalised engagement not only drives more transactions, but also builds trust and loyalty over time.

Value-Maximising Journeys for Loyalty

Ultimately, the goal of Agentic AI is to turn customers into lifelong advocates. This is where the true potential of generative journeys comes into play. These journeys are composable, made up of smaller movements. They are predictive in being to suggest the next best actions. They are also omnichannel across all touchpoints. They are also shoppable with inbox commerce enabling in-channel conversions.

With Agentic AI, loyalty isn’t just about rewards points or discount codes. It’s about creating a relationship where the customer feels understood, valued, and supported at every step. Your Co-Marketer, guided by the deep understanding of the customer’s Digital Twin, can anticipate needs, provide proactive support, and create moments of delight.

Imagine a customer who has been with your brand for a year. Your Co-Marketer can reach out with a personalised anniversary message, thanking them for their loyalty and offering a special gift. Or consider a customer who has had a negative experience. Your AI agent can work together to not just resolve the issue, but to go above and beyond in making things right.

By focusing on long-term value creation rather than short-term transactions, you can build a base of loyal customers who not only keep coming back, but also recommend your brand to others. This is the ultimate goal – turning customers into advocates who come back and bring their family and friends, thus driving sustainable, profitable growth.

Five Building Blocks

Dear CEO,

What does all this mean for your business? And how do you lead and build the AI-first version of your business? The first thing to recognise is that this new world is beyond generative AI and chatbots – which enable a natural language interface to query and interact with vast text (and images, audio, and video) libraries. While generative AI will continue to improve productivity of every employee, the real opportunity lies is in the next generation of AI: the world of Agentic AI for the customer interface.

This world will have five building blocks: Large Customer Models, Mirror World, Digital Twins, co-Marketer, and Generative Journeys. Taken together, they will enable the three objectives of hyper-personalisation, the digital twin interacting with the Co-Marketer to simplify the engagement process, and win-win journeys which are value-maximising for both the brand and the customer to enable faster conversions. Let’s discuss this further. And then we will get to the “How” you can make it happen?

Large Customer Models (LCMs): LCMs are the foundation of your AI-driven customer strategy. These models are trained on vast amounts of customer data, including demographics, transactions, interactions, and behaviours. By continuously learning from this data, LCMs develop a deep understanding of each individual customer’s preferences, needs, and patterns. They enable you to create rich, dynamic customer profiles that evolve in real-time, laying the groundwork for truly personalised experiences. Think of LCMs as CDPs come alive.

Mirror World: The Mirror World is a virtual environment where you can simulate and test various customer scenarios and strategies. It’s a sandbox where your AI agents, such as Digital Twins and Co-Marketers, can interact and learn from each other. By running simulations in the Mirror World, you can optimise customer journeys, experiment with new approaches, and identify the most effective tactics before deploying them in the real world. This allows you to innovate faster and with greater confidence.

Digital Twins: Digital Twins are AI-powered replicas of your individual customers. They encapsulate everything you know about a customer – their preferences, behaviours, and interactions – and use this knowledge to predict their needs and actions. Digital Twins operate in the Mirror World, interacting with your Co-Marketer to find the best ways to engage and serve each customer. By having a Digital Twin for every customer, you can achieve true 1:1 personalisation at scale.

Co-Marketer: The Co-Marketer is your CMO’s AI-powered marketing assistant. It collaborates with your human marketing team, taking on tasks like customer segmentation, campaign planning, content creation, and journey optimisation. The Co-Marketer learns from your best marketers and from the interactions between Digital Twins in the Mirror World. It can generate highly targeted, emotionally resonant content and offers for each individual customer, and continuously optimise the timing, channel, and message of your communications. The Co-Marketer also frees up human resources for more creative and strategic initiatives.

Generative Journeys: Generative Journeys represent the next frontier of customer engagement. Unlike static, rule-based customer journeys, Generative Journeys are dynamic, adaptive, and unique to each customer. They leverage the power of your LCM, Mirror World, Digital Twins, and Co-Marketer to create optimal, fluid, value-maximising paths for each customer in real-time. Generative Journeys are omnichannel, shoppable, and designed to accelerate the customer’s progress towards their goals – whether that’s making a purchase, learning about a product, or getting support.

By investing in these five building blocks, you can create a virtuous cycle of learning and optimisation. As your LCM learns from real-world interactions (and events), your Mirror World simulations become more accurate. As your Digital Twins interact with your Co-Marketer, they uncover new insights and strategies. And as you deploy Generative Journeys, you’re continuously learning and adapting to each customer’s evolving needs.