Luxury brands

Wattle Labs has created a "Large Behaviour Model" (LBM) of the human population. The LBM, an analogue of LLM's, which seeks to understand human behaviour, rather than language.

This video explains how our technology enhances sales and marketing for Australian luxury goods

#datascience #AI #digitalmarketing #ecommerce #behaviourchange #BehaviouralScience #psychometrics #nudging #boosts

https://www.youtube.com/watch?v=FjDSoQlATLE

Transcript

Hello luxury brands, my name is Aaron and this is Wattle Labs. I just want to start with an economic background covering the last five years in retail in Australia. We have endured COVID, a cost of living crisis, interest rate hikes, and housing affordability issues. This week a war in the Middle East has kicked off. This will have the inevitable consequence of increasing the cost base for all retailers — increasing the cost of manufacturing, transport, logistics, in-store costs, labour costs, lighting, and heating. The net effect will be a reduction in the discretionary income available to Australian households, and will inevitably lead to less sales and lower margins.

There are three logical outcomes: you're either a retailer who is completely loaded with cash, a retailer who will only just survive, or a retailer who will go bankrupt. In luxury goods there are further problems — it's almost impossible to know who your customer is. You have a very low number of transactions of very high value, as opposed to FMCG which has a very high number of low value transactions. This limits your ability to use contemporary data science techniques to increase your sales and marketing effectiveness.

For example, if a young woman walked into your store and purchased a product, your systems would simply record: "Carrie, 21 years old, living at this location, purchased this product." Wattle Labs' position is that you have to really get to know your customer. You have to know who Carrie is, what she wants, what products she would like, and then how to sell those products specifically to her. There are further challenges in the luxury brand space — you can't simply bombard Carrie with ads, because this will diminish your brand position. All of your communication with Carrie has to be very personal and extremely high value.

Wattle Labs helps you know your customers and communicate with them more effectively. So I'd just like to jump in and do a demo. This is Carrie's profile. Without reading an email, invading her privacy, listening to phone calls, or stalking her browser and app behaviour across the internet — using purely computational methods — we've been able to deduce the following: Carrie is an adult female, high income, high education, suburbanite. She has an Aussie, Ocker culture, she is single, she works in an office, she has a responsible personality, her focus is on people and culture, she has a relaxed schedule, and she is in good health.

That's the basic core socio-economic profile, and on top of that — or alongside it — we can add deeper and deeper insights about who Carrie is, which will inevitably lead to an understanding of how to sell luxury goods to her. We know that she is divorced, works in education and training, is a professional, and holds a graduate diploma. I'd actually suggest she has two degrees. Our personas, profiles, and predictions are not 100% accurate — they're 92% accurate. We also have this level of detail for all 28 million people in Australia living at all 16 million addresses, which means that if you have a customer in Australia, we can locate them and tell you who they are and how best to communicate with them.

What is really important is that using purely computational methods, we've been able to construct an indicative picture of Carrie. We haven't invaded her privacy, we haven't read her emails, we haven't gone through her recycling to see what she's purchased — yet we can say that Carrie is a highly educated Australian woman in her late 50s who has built a fulfilling life centred around her position in education and culture. We can predict Carrie's dreams, desires, fears, and worries — her motivations and goals. And what this means is that if you're selling anything to Carrie, it has to align with those dreams and desires. We believe her dreams are to travel the world and experience diverse cultures, and to pursue a PhD in her field of interest.

We don't know anything about this person directly, but with 92% confidence we can say a great deal. How then would you sell a product like Aesop to Carrie? We would suggest something along the following lines: "Aesop speaks to the discerning, well-travelled Australian woman who values quiet luxury and thoughtful ritual. Scientifically informed formulations enriched with botanical extracts, muted yet evocative fragrances, and packaging that feels as intentional as the product itself." The themes that would most resonate with Carrie would be refined self-care rituals for the discerning mature woman, botanical science meets artisanal craft, gentle and effective solutions for mature skin, and quiet luxury. These are the themes in your collateral that would resonate most highly with Carrie's psychometrics — her behavioural and psychological profile.

Wattle Labs has used computational means, machine learning, and artificial intelligence to create a very detailed profile of all 28 million people in Australia. These personas are your customers. We can help you know your customers and communicate with them more effectively, and this will have the consequence of increasing your sales and your marketing efficiency. Thank you very much for listening. If you're in luxury goods in the Australian market, please contact us. Thank you. Bye.