WEBVTT 00:00:00.200 --> 00:00:03.160 Every industry now has a personalization leader. 00:00:04.640 --> 00:00:08.440 Mark, tell us about BCG's new personalization index. 00:00:08.440 --> 00:00:10.880 How does it work, and what makes it so exciting? 00:00:11.360 --> 00:00:14.920 Well, I'm really excited because in all of my work on personalization, 00:00:14.920 --> 00:00:18.120 one of the key things we struggle with is 00:00:18.120 --> 00:00:23.920 that there's not really an easy way to measure personalization or even agree on what it is. 00:00:24.200 --> 00:00:27.160 So the personalization index addresses this need, 00:00:27.160 --> 00:00:30.880 and we came up with it for my book "Personalized", 00:00:30.880 --> 00:00:33.800 which was published last year, and now we're updating this 00:00:33.800 --> 00:00:37.280 personalization index every year for Cannes. 00:00:37.280 --> 00:00:41.320 We published our first annual personalization index report, 00:00:41.320 --> 00:00:47.000 and in it we scored 200 brands around the world across every sector on 00:00:47.000 --> 00:00:49.040 personalization maturity. 00:00:49.200 --> 00:00:50.520 So what does that mean? 00:00:50.560 --> 00:00:52.760 Well, we looked at the customer experience. 00:00:52.760 --> 00:00:56.320 So how does the brand show up across all different channels? 00:00:56.560 --> 00:00:58.160 How does the customer experience it? 00:00:58.560 --> 00:01:02.880 Then we also looked under the hood. What does the data and tech stack and 00:01:02.880 --> 00:01:08.520 content process and even team and ways of working look like for the team at that company? 00:01:08.560 --> 00:01:12.440 So we talked with lots of marketers that actually do this work. 00:01:12.680 --> 00:01:17.080 We also looked at our own team's experience and did a lot of mystery shopping. 00:01:17.080 --> 00:01:17.880 It was a lot of fun. 00:01:18.240 --> 00:01:20.760 The results were kind of shocking actually. 00:01:21.080 --> 00:01:24.280 Well, tell us about that because you know, having looked at so many companies, 00:01:24.280 --> 00:01:25.480 what were your key takeaways? 00:01:25.840 --> 00:01:31.240 Some of the takeaways will not surprise you that especially digital native brands 00:01:31.240 --> 00:01:33.200 do score highly on the index. 00:01:33.760 --> 00:01:39.200 The likes of Spotify and Uber and other digital natives scored quite highly. 00:01:39.680 --> 00:01:44.800 But what struck me differently than when we did this a few years back, 00:01:44.800 --> 00:01:48.360 every industry now has a personalization leader. 00:01:48.360 --> 00:01:53.240 These are brands that are scoring more than 70 on our 100-point index, 00:01:53.240 --> 00:01:57.120 and they're really setting the bar for personalization. 00:01:57.760 --> 00:02:02.960 I think the other piece that was the most surprising actually is just the extent to 00:02:02.960 --> 00:02:05.240 which personalization drives growth. 00:02:05.920 --> 00:02:11.280 Because when we looked at correlating the personalization index with outcomes, 00:02:11.280 --> 00:02:16.600 there was a clear correlation in terms of personalization leaders driving ten 00:02:16.600 --> 00:02:20.840 points more of growth per year than personalization laggards. 00:02:21.120 --> 00:02:25.120 So we did the math on it, and it's a $2 trillion prize that's up 00:02:25.120 --> 00:02:27.840 for grabs. I mean, that's huge! Absolutely. 00:02:27.840 --> 00:02:29.720 And it's spread across every industry. 00:02:29.720 --> 00:02:34.480 So what I love about the personalization index report is we've brought to life 00:02:34.480 --> 00:02:38.520 with lots of real examples in the digital and physical experience, 00:02:38.520 --> 00:02:40.920 what that looks like in every industry. 00:02:41.080 --> 00:02:45.320 Mark, tell us about BCG's CMO survey looking at 00:02:45.320 --> 00:02:46.440 GenAI. 00:02:47.000 --> 00:02:50.480 Yeah, this was really powerful actually in 00:02:50.480 --> 00:02:56.840 terms of being able to see again across 200 different CMOs across regions and 00:02:56.840 --> 00:02:57.760 industries. 00:02:58.080 --> 00:03:00.240 What's the real real on GenAI. 00:03:00.400 --> 00:03:02.760 Let's separate the hype from the reality. 00:03:03.320 --> 00:03:09.120 And the good news is CMOs actually are quite optimistic on GenAI. 00:03:09.320 --> 00:03:13.280 83% of CMOs now say they're optimistic. 00:03:13.280 --> 00:03:15.080 They believe in the value of GenAI, 00:03:15.080 --> 00:03:18.480 up from 74% just a couple of years ago. 00:03:19.080 --> 00:03:23.640 And that's because this is the year when they're really seeing the scaling 00:03:23.640 --> 00:03:24.280 happening. 00:03:24.840 --> 00:03:27.840 I would say 2024 was a year of piloting. 00:03:27.840 --> 00:03:29.400 They were trying many things. 00:03:29.400 --> 00:03:32.760 For example, 70% of them tried GenAI 00:03:32.760 --> 00:03:38.240 in content creation, things like copy and image generation especially. 00:03:38.240 --> 00:03:43.400 Now they're actually scaling those use cases, they're finding efficiencies, 00:03:43.400 --> 00:03:46.760 they're taking out some of the road work from the team. 00:03:46.760 --> 00:03:50.880 But I think where there's a lot of excitement is taking this to the next level. 00:03:50.880 --> 00:03:55.200 So completely reinventing the content supply chain with GenAI 00:03:55.200 --> 00:04:00.040 and upping the quality of all that content they put out and even getting 00:04:00.040 --> 00:04:03.680 into rich media. Like 30% of them are now using GenAI 00:04:03.680 --> 00:04:07.360 for video and rich media content creation as well. 00:04:07.880 --> 00:04:14.280 So you're seeing the bar continue to rise in how the CMOs are thinking about it. 00:04:14.720 --> 00:04:16.160 And that requires investment. 00:04:16.200 --> 00:04:24.000 So 71% of CMOs are now investing upwards of $10 million a year in GenAI 00:04:24.000 --> 00:04:25.800 and AI every year. 00:04:26.400 --> 00:04:29.440 And that's gone up significantly over the last couple of years. 00:04:29.800 --> 00:04:35.880 So the CFOs are also going to be demanding that level of return on that investment. 00:04:35.880 --> 00:04:40.640 And that's where the homework of the marketing teams is in 2025. 00:04:40.640 --> 00:04:42.360 Show me the money, show me the value. 00:04:43.440 --> 00:04:44.240 Lots more to come. 00:04:44.400 --> 00:04:46.560 Well, Mark, thanks so much for joining us here in Cannes. 00:04:46.560 --> 00:04:47.480 Talk it all through. 00:04:47.560 --> 00:04:48.400 Thanks so much.