The Case Study: Case Study 13 -1: AI-Based Software Helps Businesses Better Understand Customers

AI-based software is getting smarter at analyzing qualitative data, words, phrases, and understanding the relationship among these words. These programs are able to analyze data generated through focus groups, surveys, online forums, call centers, help desks, and social media and are able to generate new insights. Such new insights could help businesses offer better customer service and products and services that are more appealing to their customers. Scotts Miracle-Gro, a major provider of lawn, garden, and outdoor-living products and services, recently noticed that a large number of customers were canceling lawnfertilizer service. Not knowing what was causing the problem, the company conducted a survey and asked customers to rank their satisfaction with the company offerings and other feedback. Using AI-based software called Luminoso (www.luminoso.com (Links to an external site.)), Scotts analyzed the data, which yielded some interesting results. The reason customers were canceling the service was because they expected better customer service from the company. Although the words customer service were not cited specifically in the survey, the software was able to associate words such as listen or not responsive in order to come up with the finding. According to David Erdman, a senior analyst at Scotts, the company is now examining its customer service in order to make improvements. Luminoso performs its analyses by accessing a large database that stores common-sense knowledge and relationships (such as if you drop a ball, it will fall) that help understand how words and phrases relate to each other.

1. What problems were Scotts Miracle-Gro facing?
2. Which software was used to analyze data collected by Scotts?
3. How does a software tool such as Luminoso analyze data?
4. What are some strategic applications of software tools such as Luminoso?