The Drum recently caught up with Amy Lanzi, CEO of Digitas North America, at the Possible conference in Miami, where she shared her insights into the exciting evolution of marketing: the dawn of CRM 3.0. Let’s dive into how this transformation intertwines data, AI, and storytelling, paving the way for **hyper-personalized experiences** and **deeper customer loyalty**.
CRM 3.0: A New Era of Connection
Gone are the days when customer loyalty was merely about **points and plastic cards**. Lanzi emphasizes that we are shifting towards the understanding of customers in a **deeper, more meaningful way**. “It’s not just about liking a product anymore; it’s about loving it and forming true loyalty,” she asserts.
This evolution signifies a monumental transformation in the marketing landscape, especially visible in commerce marketing. The explosion of retail media, for instance, has caught many—Lanzi included—by surprise.
Retail Media: From Afterthought to Centerpiece
In a rapidly changing market, retail media has transitioned from being an afterthought to a pivotal strategy for brands. Lanzi provides clarity by distinguishing between retail media and commerce media.
- Retail Media: Utilizes first-party data to target consumers on the retailer’s platforms.
- Commerce Media: Offers a broader scope, allowing purchases directly within social platforms like Instagram.
As retailers refine their data strategies, the sector is expanding, and even though Amazon currently commands 75% of the market, Lanzi predicts the growth of competing retail media networks. “Others are building capabilities rapidly,” she mentions, highlighting the **real opportunity for brands** that engage with multiple retailers.
The Measurement Dilemma: Fueling Future Growth
However, this optimistic outlook comes with a crucial caveat: without robust **measurement systems**, growth could stagnate. Lanzi warns, “If we can’t showcase the effectiveness through measurements and outcomes, the investment will dwindle.”
The patchwork of varying capabilities across retail media networks presents a significant challenge. While initiatives like the IAB’s push for universal standards are promising, the industry still has a long way to go.
AI’s Revolutionary Role in Marketing
Lanzi also sees immense potential in AI helping navigate the fragmented marketing landscape. Predicting optimal ad placements is just the **tip of the iceberg**. She emphasizes personalization as AI’s primary revolutionary impact.
“Imagine an online shopping experience at Walmart tailored explicitly to your past behavior,” she describes, illustrating a vision where past purchases inform future recommendations such as **skin-sensitive shaving cream** options.
She points to Amazon’s AI agent, **Rufus**, which leverages thousands of reviews to curate smarter recommendations. “We can envision a world where Rufus places orders for you based on your choices—where agents converse with one another,” she adds, painting a vivid picture of the future.
The Power of First-Party Data
As AI becomes more proficient, **first-party data** stands out as a lucrative asset. Traditional media owners may soon find themselves at a competitive disadvantage. Lanzi explains, “In a cookieless world, the future depends on how much first-party data traditional media owners have.”
Publicis Groupe, the parent company of Digitas, has invested approximately **$300 million** in AI initiatives like **CoreAI**, emphasizing the necessity for agencies to carve their niche in a crowded industry.
The Future of Marketing Tech: Tailored Solutions
As discussed at the Possible conference, the marketing tech stack is evolving, and brands must discern their **true needs**. Lanzi mentions, “If mass reach is your goal, you may not require an extensive suite of solutions. But if personalization and efficiency are your objectives, they are non-negotiable.”
There’s an increasing demand for “**cloud-based, bring-your-own-data**” models, allowing brands greater control and transparency over their customer data.
The Convergence of Commerce and Storytelling
Lanzi firmly believes that commerce today transcends the conventional notion of being just a “lower funnel” tactic. Great storytelling is crucial. “People don’t just buy products; they buy stories,” she insists. Authenticity is the key to customer engagement, whether with **Sephora** or **Helion**.
In essence: the future of marketing is about an integrated, **full-funnel experience that is deeply personalized**.
The Coming of CRM 3.0
As we approach this pivotal moment, the intertwining of CRM, commerce, media, AI, and storytelling signifies a monumental paradigm shift. Brands must view loyalty, data, and creativity as interconnected threads in this new narrative.
“CRM is experiencing an exhilarating transformation,” Lanzi concludes. “It’s fundamentally about understanding your customer and crafting remarkable experiences. Get ready, CRM 3.0 is on the horizon, and it’s poised to redefine the landscape of commerce marketing forever.”
Fasten your seatbelts; the future of marketing is here, and it promises to be nothing short of remarkable.
