Using Data-Driven Algorithms To Find Your Agency's Sweet Spot

Do you know how using AI and data-driven algorithms could help you save money on inefficient positioning? Anne Cheng is an entrepreneur that started her business with an idea in mind: what if she could get inside the heads of people and understand what information they required to make decisions? Supercharge Lab is a cognitive artificial intelligence company that uses AI and data to try to understand what goes on inside customers' heads, or rather listen to the voice in their head. In this episode, Anne sat down with Jason to explain how this AI technology works, why business owners should embrace that it is the future and use this innovation to their benefit, and how agency owners could use it to create specific targeting and sales and marketing content that resonates with its audiences and find their sweet spot in the market. 3 Golden Nuggets Getting inside people’s heads. How can we really understand what goes on inside someone’s head? Anne explains that what really gives us away is how we write, instead of what we write. The tones, the structure, the number of emojis, and the type of words we use are giveaways that offer a glimpse into things like our emotional state, personality style, social styles of interaction, and conflict management. Her company uses this data to build algorithms that help them put people in categories of psychological profiles or cognitive styles. “After we applied it to sales and marketing, we've seen a significant lift in our customer ROI,” she says. How the industry will change. Will AI replace what agencies are doing for clients? This technology is becoming quickly democratized. A few years ago artificial intelligence was all about building training models and putting in huge massive slices of data. Today it costs $16 and 39 cents to run a learning model. It can be really quick and easy to train a model with a high level of accuracy. Is the technology strong enough to completely replace a human? “I think not at this point,” Anne told us. There is still a long way to go before that, but it is the future. For now, it’s all about not wasting money on inefficient positioning. “Data-driven algorithms are not the enemy,” she adds. Advantages for agencies. We should always use new technologies and innovations to our benefit, and to benefit our clients. We all know that agency owners struggle with their own marketing and have a hard time treating themselves like their own clients. Anne believes this struggle comes from not really knowing where your sweet spot is and that using these technologies could help you experiment. Using algorithms can help you determine the accuracy of your targeting. For example, if you would like to go after medium-sized businesses with revenues between 10 to 50 million, you can test your response rates. Algorithms are great ways to experiment. It's cheap, it's fast, and you're not wasting time. Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Stop Wasting Resources and Use Data-Driven Algorithms to Find Your Sweet Spot in The Market Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and we've got another great episode coming to you. And we're going to talk around AI and what you can do with really kind of targeting the right audience, as well as having the AI tool, write the copy for you to convert faster. So I'm excited to get into this episode. Uh, so let's jump in. Hey, Anne. Welcome to the show. Anne: [00:00:31] Thanks for having me, Jason. Jason: [00:00:32] Yeah. So tell us who you are and what do you guys do? Anne: [00:00:36] Well, my name is Anne and I'm the founder and CEO of Supercharge Lab. Supercharge Lab is a cognitive artificial intelligence company, which means we take AI and a lot of data and we attempt to understand what goes on inside your head, or rather listen to the voice in your head. And we do that for the purpose of applying it to sales and marketing. We try to improve the ROI as far as our clients. And so far it's been quite a ride. Jason: [00:01:04] Cool. And so how did you… how'd you, how'd you all come up with developing this? Anne: [00:01:11] Well, I guess it started with the idea that we said, what if we could get inside the heads of people and understand what information they required to make decisions? Uh, and that way we could make decision-making more predictable, uh, less noise and biased. And, well, improve results across all kinds of positions that are being made. Whether it's medical decisions or diagnosis, whether it's sales and marketing, uh, purchase behavior. Um, so, well we decided to try to figure out how people, what information people take in, in order to make decisions. And we came up with an algorithm that profiles, the information, uh, that people take in the site, the cognitive style of people, what we call or the psychological profile. And, uh, well the rest is history. After we applied it to sales and marketing, we've seen significant lift in our customer ROI. Um, we have had customers who literally renew their campaigns with us so often that they tell us they cannot see a day without, uh, using our solution. Jason: [00:02:20] Awesome. And tell us kind of, how does… How did you guys really kind of write the algorithm in order to get inside our heads? I mean, how does all that work? That's always fascinating. Anne: [00:02:34] So I think that's a great question, Jason. So a lot of people look at what we write because when we, when we write, um, whenever we write the contents of what we write is driven by who audiences is what we want to say. Uh, but a lot of people fail to realize that what, what really gives us away is how we write. The tones, the structure, the number of emojis or bullet points, or the kind of words that we use. That actually is the voice inside our head. That's the tone of the voice inside our head to tell gifts, clues into things like, you know, your emotional state, your, your personality style, your social styles of interaction. Or even your style of conflict management. Um, by understanding how it be right to be basically we're able to take these language models, parse it into an algorithm. And well, uh, we have been able to put everybody in some categories of psychological profiles or what we call cognitive styles, um, and hopefully using rules based and data-driven, uh, algorithms, were able to cut out a lot of the noise that actually, you know, gifts written comes from manual advertising and marketing. Jason: [00:03:57] I feel, I feel dirty. You're profiling me. Anne: [00:04:02] No, I don’t do that. Jason: [00:04:04] Um, so. How would someone… As an agency, you know, they, and I'm talking more about not for their clients, but really for themselves, right? So we just got done as we're recording this, this week, our digital agency experience, where we have, you know, 28 of the best agency owners come out, um, to my house in Colorado, when we brainstorm on strategies and what's working. And the common theme, and this is among most digital agency owners. And if… If, uh, if you don't admit this you're supporting terrorism. But we, they struggle with doing their own marketing and creating themselves as their own clients. Um, and a lot of them struggle with just identifying who their audience… Cause they try to go after everybody. So how could, you know, AI really helped them out in order to reach more of the audience? Because they may not know who they're targeting yet. Anne: [00:05:08] Yeah. So I think one of the biggest struggles as a… well a marketing organization is actually understanding where your sweet spot is. And, uh, you know, using algorithms, you can actually do a lot of experimentation. Uh, one of the biggest things that, um, AI does, is that it gives you a score of how much you are able to resonate, how accurate, you know, your targeting is. So if, for example, you think you would like to go after, you know, a medium-sized business with revenues between 10 to 50 million, and you don't really know whether this is really the sweet spot for you. You can actually test, um, the, the targeting and you can test things like, you know, what we call your, your outbound messages as well as your response rates. And if you see that your response rates are lower than another particular industry, you know…  It's possibly time to change and don't throw good money after, you know, a bad result all the time. And so that's what Einstein says is stupidity, you know, expecting a different result by doing the same thing, all, all the time is insanity. So what I would do is use algorithms, use artificial intelligence, or what may be called big data, uh, to understand what your audience is and test the vigor at which they will respond. Now, I've done that a lot with myself, with my own audience. Um, and I've noticed that, you know, we try to grow, uh, our customers by, you know, going after bigger companies. Well, it doesn't work. Um, we, we realized that we were not getting any conversions. We were not getting any customers inquiring. So we said, you know, maybe we should go back to, uh, the smaller businesses. And at the same time, we change up the different industry. So algorithms are great ways to experiment and it's cheap. It's fast. It, it takes me three days to identify whether, you know, this is the right market. You're not wasting time. So yeah. Jason: [00:07:28] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions, compliance. None of it's easy. Unless of course, you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gustos help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. Very cool. So will AI… Will AI replace what agencies are doing for clients? Like I look at it as, and I've been telling agencies like this for a long time. And if you think about kind of the car industry, you know, many, you know, many, a hundred years ago, I guess, you know, the car industry created dealers or the manufacturer created dealers, and they were the middlemen selling to the public because you can't go to the dealer. Um, and forever, it was that way. And then, you know, Tesla came out and you, you don't go through a dealer… You buy it right from the manufacturer. And I kind of see a lot of this starting to happen with agencies that are just doing a particular service where, you know, Facebook and Google would always promote agencies. But I kind of see them starting to kind of pull back from agencies a little bit because now people can go directly to them and not use the middlemen. Anne: [00:09:33] Yeah, for sure. I think, uh, one of the things about technology is that is becoming very quickly democratized. Artificial intelligence just a few years ago, was all about, you know, building training models, you know, putting in a lot of data, huge massive slices of data. Today it costs me $16 and 39 cents to run a learning model. Uh, it takes maybe about an hour to, to train a model. And you know, it, it can be really, really quick and easy, um, with a high level of accuracy to train a, uh, artificial intelligence model. Is, um, the technology strong enough to completely replace a human? I think not at this point. I think that is still a way to go, uh, where, you know, copy is not going to sound like it's artificially written. Uh, so that's, that's something which I think is going to, uh, have to develop a little bit more. But to understand your audience, to predict the audience with a level of, um, certainty, it’s starting to become quite democratized. So I think, yes, logic-based artificial intelligence is going to upend the advertising industry. But that being said, artificial intelligence to going to upend almost every industry, if you let it. Jason: [00:11:01] Yeah, yeah. Well, it’s, you know… That's what innovation is. It should always challenge the status quo and make us better. And you know, the one thing I always tell agencies is use the new technology, the new innovations to your benefit, and to benefit your clients, you know, going forward. Um, this has all been great, Anne. Is there anything I didn't ask you that you think would benefit the audience? Anne: [00:11:24] Yeah, I think, you know, the biggest question that we have as marketing organizations is how can we use that wastage? Um, today up to 26% of ad spend… It's wasted on inefficient, uh, positioning and efficient messaging. And I think a lot of us have to try to learn that, you know, data-driven algorithms and rules-based algorithms can… are not the enemy. Our enemy is embracing… um, the, the innovation that is coming. So I think our enemy is truly ourselves. If we get over ourselves, we can definitely grow the business, um, in a massive, in a major way. Jason: [00:12:09] Awesome. What's the website people can go and check you guys out? Anne: [00:12:14] Well, it's superchargedlab.com. Remember as supercharged lab without an S at the end dot com. Jason: [00:12:20] Awesome. Well, thanks so much for coming on the show, Anne. You did great lots of great insights. And if you guys enjoyed this episode, make sure you guys subscribe, make sure you comment. And if you guys want to be around the best agency owners out there and really tap into their heads, because maybe you haven't tapped into the AI yet, um, I want to invite all of you to go to digitalagencyelite.com and apply. And, uh, if we feel that you're right and the group's right for you, we'll have a chat and… So good at digitalagencyelite.com. And until next time, have a Swenk day.