Podcast Summary: The Agile Brand with Greg Kihlström®

Episode #632: Driving Measurable Retail Growth with Cédric Chereau, EagleAI
Release Date: January 31, 2025
Host: Greg Kihlström
Guest: Cédric Chereau, Managing Director at EagleAI

Introduction

In Episode #632 of The Agile Brand with Greg Kihlström®, host Greg Kilstrom engages in a compelling discussion with Cédric Chereau, Managing Director at EagleAI. The conversation delves into the transformative power of predictive AI in the retail sector, exploring how it can bridge the gap between data potential and actionable insights to drive measurable revenue growth.

Guest Background and Expertise

[03:03] Cédric Chereau:
Cédric shares his extensive background in retail data science, highlighting over 20 years of experience in helping retailers optimize their loyalty programs. He details his transition from a consultant working with major retailers like Walgreens and Target to his current role at EagleAI, where he leads efforts in creating personalized offers and loyalty systems for global grocery giants such as Loblaw, Woolworths, and ASDA.

The Power and Underutilization of Data in Retail

[04:33] Greg Kilstrom:
Greg introduces the core topic by stating that retailers are sitting on a "goldmine of data," yet only 20% are fully leveraging it.

[05:07] Cédric Chereau:
Cédric explains that the remaining 80% are not utilizing data effectively because they implement AI in fragmented ways rather than as an integrated, end-to-end solution. He emphasizes the importance of a cohesive AI pipeline to ensure all components work harmoniously to deliver personalized customer experiences.

Barriers to End-to-End AI Implementation

[06:39] Cédric Chereau:
Cédric identifies prioritization as a major barrier. Retailers often struggle to balance strategic initiatives with the need for speed and efficiency. He advocates for a balanced approach of "make and buy," where retailers develop core strategic capabilities in-house while purchasing specialized solutions to accelerate deployment and enhance agility.

Differentiating Predictive AI from Generative AI

[08:21] Cédric Chereau:
Cédric distinguishes between predictive AI and generative AI (GenAI). While GenAI focuses on creating content like text, images, and videos, predictive AI is crucial for personalizing offers and driving customer behavior.

[09:37] Cédric Chereau:
He states, "Predictive AI is more important, even if it's a little less cool than GenAI," highlighting its role in understanding and influencing customer spending habits more directly.

[12:19] Cédric Chereau:
Cédric further elaborates on the synergy between predictive AI and GenAI, calling their combination "the holy grail" of complete personalization.

Driving Revenue Through AI-Driven Personalization

[14:16] Cédric Chereau:
Cédric discusses how AI-driven personalization can boost revenue by up to 40%. He explains that precise measurement of customer behavior allows for incremental sales through tailored offers.

[14:33] Cédric Chereau:
He provides a specific example: "By defining personalized spending thresholds, customers are incentivized to spend slightly more to receive rewards, ensuring both customer satisfaction and increased profitability."

[17:40] Cédric Chereau:
Cédric emphasizes the importance of using the right metrics to evaluate AI-driven initiatives, ensuring that efforts lead to genuine revenue gains rather than merely increasing coupon adoption.

[21:51] Cédric Chereau:
He cites the success of EagleAI’s personalized challenges for grocery retailers, where every dollar spent on rewards generates at least $7 in incremental sales, demonstrating significant ROI.

Overcoming Challenges in AI Adoption

[18:19] Cédric Chereau:
Cédric acknowledges the complexity of explaining sophisticated statistical approaches to retail clients but underscores the necessity of precise measurement for evaluating AI initiatives effectively.

[19:56] Cédric Chereau:
He advises that AI solutions should empower retailers by keeping control in their hands, allowing them to set strategic objectives while leveraging AI to achieve those goals without the solution becoming a "black box."

Future Trends and Predictions in AI for Retail

[24:04] Cédric Chereau:
Looking ahead to 2025, Cédric predicts exponential growth and integration of AI in all facets of retail, including advanced personalization, voice commerce, conversational bots, and supply chain optimizations. He believes that while current applications are impressive, the potential for AI in retail is virtually limitless and just beginning to be tapped.

Staying Agile in a Rapidly Evolving Landscape

[26:03] Greg Kilstrom:
Greg transitions to a discussion on agility, asking Cédric how he remains agile in his role.

[26:14] Cédric Chereau:
Cédric shares his strategy for maintaining agility: prioritizing tasks, staying organized without over-scheduling, and empowering his team to contribute ideas. He believes that fostering a collaborative and empowered team environment is key to sustaining agility.

Conclusion

[27:23] Cédric Chereau:
Cédric wraps up by reinforcing the importance of tailored AI solutions that address specific business challenges, ensuring that retailers can maintain control and achieve their strategic objectives.

[27:36] Greg Kilstrom:
Greg thanks Cédric for his insights and directs listeners to additional resources for further information on EagleAI and the podcast.

Key Takeaways

• Integrated AI Solutions: Effective use of AI in retail requires an end-to-end approach rather than fragmented applications.

• Predictive vs. Generative AI: While GenAI offers creative content generation, predictive AI is paramount for personalizing offers and driving sales.

• Personalization Drives Revenue: AI-driven personalized promotions can significantly increase incremental sales and overall profitability.

• Balanced Make and Buy Strategy: Retailers should strategically develop in-house capabilities while purchasing specialized AI solutions to enhance agility.

• Future of AI in Retail: The integration of AI in various aspects of retail, including personalization, voice commerce, and supply chain management, is expected to grow exponentially.

• Maintaining Agility: Prioritizing tasks, staying organized, and empowering teams are essential strategies for remaining agile in a dynamic market environment.

Notable Quotes

• Cédric Chereau on Predictive AI Importance:
  (09:37) "Predictive AI is more important, even if it's a little less cool than GenAI... that's where the money is, that's where the profitability is."

• Cédric Chereau on Personalized Challenges:
  (14:33) "Once you have hooked them in the program, then you might want to action a little bit the profitability lever and increase a little bit... that's how you make sure that you hit the target."

• Cédric Chereau on Future AI Trends:
  (24:30) "I think we're just at the beginning. It's impressive how small we are for the moment. I think it will become massive."

Further Resources

• Learn More About Cédric Chereau and EagleAI:
  Follow the links provided in the show notes of Episode #632.

• Subscribe to The Agile Brand:
  Visit theagilebrand.com to access more episodes and stay updated on the latest in marketing technology and AI trends.

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The Agile Brand with Greg Kihlström® continues to explore cutting-edge topics in marketing technology, providing valuable insights for brands aiming to thrive in an ever-evolving landscape.