Rajesh Jain Warns of Revenue Taxes Harming Businesses
Rajesh Jain, founder and managing director of Netcore, speaks at the MarTech + Summit hosted by ETBrandEquity.
At the recent MarTech+ Summit, Rajesh Jain, the founder and managing director of Netcore, pinpointed ‘revenue taxes’ as a pressing issue affecting contemporary enterprises. These expenditures can erode 20-30 percent of a company’s gross income.
Jain elucidated that revenue taxes encompass payments to advertising platforms for customer acquisition, marketplace commissions, and discounts offered to one-time clients.
“On a global scale, this inefficiency culminates in an astonishing $500 billion, with India alone contributing roughly $10 billion,” Jain noted. He asserted that a considerable portion of marketing budgets is allocated to recapturing customers who have previously interacted with the brand.
The remedy, Jain posited, lies in forging robust, daily interactions with existing clientele. This strategy requires personalization down to the individual, termed ‘N equals one,’ in addition to designing adaptive customer journeys that adjust in real time—akin to Google Maps remapping based on current traffic conditions.
“Agentic marketing is the key to circumventing the 20-30 percent revenue tax,” Jain remarked. “It offers a pathway to sustainable and profitable growth by eliminating the need to reacquire customers you already possess.”
He stressed the foundational necessity for cohesive customer intelligence, asserting that artificial intelligence can only be effective if it operates on quality data. Identifying each customer with at least two distinct markers—such as a mobile number and an email address—is crucial for sustained connectivity.
Moreover, customers should be categorized based on their lifetime value instead of demographics, recognizing that a small percentage of ‘best’ customers frequently account for the lion’s share of revenue.
The essence of this innovative approach is encapsulated in several vital concepts. First is the ‘Brand Twin,’ an AI-driven agent serving as a digital concierge, forming an interface between the brand and consumer.
“Consider it a personal shopping assistant well-acquainted with your preferences, style, and purchasing history,” Jain elaborated. This twin tailor offers to individuals, fostering trust where transactions naturally unfold.
Yet, even the most advanced AI necessitates a communication channel to reach consumers. Jain made a compelling argument for email as the primary ‘hotline’ for establishing daily relevance and countering attention scarcity.
“Email is the most effective medium for engagement,” he asserted, emphasizing the potential of AMP-powered interactive emails that convert the inbox into an active engagement arena.
Highlighting data from over 11 brands, Jain revealed that engaged email users experienced a ninefold increase in conversion rates, yet many brands fail to engage more than 35 percent of their clientele consistently.
Lastly, Jain introduced the concept of the ‘AI Agents Collective,’ where specialized AI agents collaborate to achieve feats beyond human capabilities.
“Creating 500 segments and developing content for each is unfeasible,” Jain stated, suggesting that this multi-agent framework could unveil 100 times more segments and expedite campaigns cost-effectively.
Jain urged marketing leaders to adopt the role of ‘AI and Profits Officer,’ emphasizing the significance of AI impact, profit and loss fluency, and an agentic perspective.
This shift could navigate their companies away from the competitive ‘red ocean’ and into the uncharted waters of the ‘blue ocean’ illuminated by agentic marketing.
Source link: Brandequity.economictimes.indiatimes.com.
