Solving marketing’s black box problem: predictability with explainability

Modern marketing has a major black-box problem when it comes to the kudzu-like spread of AI across the industry. While marketing AI is uniquely able to make quality predictions from enormous amounts of opaquely correlated customer behavioral data, in most cases these results are delivered via unsupervised learning algorithms and therefore lack human-accessible explanations. This lack of explainability is problematic for multiple reasons; perhaps most importantly, this opacity prevents humans from being able to build upon AI-driven predictions with common-sense insights that further improve efficiencies.

Recall your high school math classroom (if you care to), particularly the exams. A boxed correct answer in the absence of supporting ‘work’ (the explanation) always prompted a ‘show your work’ comment in red pen. The correct answer is, of course, an excellent place to start; however full mastery of the building blocks is critical in order to effectively partner with AI to attain optimal efficiencies and results.

Put succinctly by the Marketing AI Institute, “Although machine learning algorithms are highly precise, if they can’t tell you why someone is likely to respond, purchase, be a high-value customer, cost money or churn, then it’s impossible to have insights that are contextually relevant.” Marketing has historically been an industry grounded in the why; without it, marketers are working with one arm tied behind their backs.

Pinpoint has a solution for this explainability conundrum: all of our analyses are grounded in the fact that humans have distinct, measurable psychological differences. These well-researched personality dimensions underlie most decision making and behaviors. Much of this we understand at an intuitive level; for example, we know extraverts are more likely to spend time in group settings, and cynics respond well to messages appealing to their deeply held sense of skepticism.

Pinpoint’s predictions are still powered by cutting-edge AI, informed by billions of data points. However, our output includes uniquely explainable psychological intelligence. This is how we show our work, and it enables marketers to build upon our results with their own native understanding of personality and compelling communication styles to amplify the effects of our algorithms’ quantitative findings.

Want to experience high predictive power and explainability? Reach out to chat and see a demo.