Monday Memo
A Byte of Knowledge
Steve Jobs once said that creativity is just connecting things.
But it's not just connecting ANY old things...
It's about connecting unrelated experiences and insights that others don't see.
Jobs famously took a calligraphy class in college that seemed pointless at the time.
But years later, that random experience sparked the idea for multiple fonts and desktop publishing on the Mac.
This is one way you should approach AI.
Most marketers are using AI to do the same old things faster and cheaper, right?
But the real innovators...
They're using AI to explore uncharted paths and make unexpected connections.
They're feeding their AI data...like customer reviews, competitor ads, and old sales letters...
To uncover hidden insights into what makes people buy.
They're following their intuition down new rabbit holes...
By having AI write copy in totally different voices and styles than they normally would.
They're trusting that some of those experiments will lead to breakthroughs in messaging and offers.
Just like Jobs did with calligraphy and computers.
So don't just use AI to optimize what you're already doing.
Let it open your eyes to creative possibilities you've never imagined.
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Something to Ponder
Netflix struck gold when they implemented autoplay - that simple feature of automatically starting the next episode.
It massively increased the hours people spent watching Netflix.
More than any other feature they tested.
When they first launched autoplay (originally called "post-play") on their web player, they A/B tested it to small groups of around 100,000 users.
And the results were mind-blowing.
Autoplay increased viewing hours more than any other feature in Netflix's history.
So they rolled it out to everyone.
But they didn't stop there...
They tested different countdown lengths between episodes.
5 seconds, 10 seconds, 15 seconds.
Turns out, 10 seconds was the sweet spot.
Long enough to let people digest what they just watched...
But short enough to keep them hooked.
Although Netflix recently switched to 5 seconds, likely because their user base is now conditioned to expect autoplay.
And this relentless focus on testing and optimization transformed Netflix into the streaming juggernaut it is today.
Because their top two priorities were watch time and subscriber retention.
And autoplay delivered on both.
What's the "autoplay" feature for your business?
What's the one thing you could build that would get your best customers coming back for more?
Again and again.
We Asked – AI Answered
Our Question:
"The fast-fashion industry thrives on quick trends and low prices. How do companies like Zara manage to reduce the time from design to retail in just a few weeks, and what can other businesses learn from their supply chain strategies?"
AI's Answer:
Alright, let's dive into how fast-fashion giants like Zara have revolutionized their supply chains to get new designs from the drawing board to store shelves at lightning speed, and the key lessons other businesses can take away:
Zara's secret sauce: A vertically integrated supply chain
- By owning every step of the process from design to manufacturing to distribution, Zara maintains incredible control and flexibility.
- This allows them to react rapidly to new trends and customer demand signals.
Embracing agile design and small batch production
- Instead of locking in huge orders months in advance, Zara releases small batches of new designs constantly.
- Failed designs can quickly be pulled, while successful ones are ramped up. This minimizes excess inventory.
- New styles hit stores twice per week, keeping the brand fresh and exciting for trend-seeking shoppers.
Proximity is key - manufacturing close to HQ and the customer
- 60% of Zara's production happens nearby in Spain, Portugal, Turkey and Morocco vs. Asia.
- While labor costs are higher, this proximity enables shorter lead times and a more responsive supply chain.
- Finished garments reach European stores in 24 hours and the US in 48 hours. Speed is a competitive advantage.
Data-driven demand forecasting and distribution
- Point-of-sale data is instantly fed back to HQ, so Zara has a real-time pulse on what's selling.
- Sophisticated forecasting models allow Zara to predict how much of each SKU to produce and where to allocate inventory for maximum sell-through.
Key Takeaways for Other Businesses:
- Evaluate the trade-offs of vertical integration. More control and speed vs. higher fixed costs and complexity.
- Embrace agile principles in product development. Smaller, more frequent launches allow faster learning and pivoting.
- Consider nearshoring/onshoring manufacturing, factoring in the benefits of speed and responsiveness, not just labor costs.
- Invest in data capabilities to better predict demand, optimize inventory, and inform design and production decisions.
GOT 15 SECONDS?
Thanks for reading the Monday Memo.
Until next time!
The AI Marketers
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