Article

Fazil Nazir
Fazil Nazir 25 May 2018

Is your CRM/Loyalty Program infused with Artificial Intelligence (AI)?

According to New York Times journalists, John Markoff and Steve Lohr, many of the tech industry’s biggest companies like Amazon, Google, IBM and Microsoft, are competing to become the go-to company for A.I

In the very near future, intelligent software applications will become commonplace and machine learning will touch every industry. Today, only about one percent of all software apps have A.I. features, IDC estimates. By 2018, IDC predicts that at least 50 percent of developers will include A.I. features in what they create

Retail is one sector where Artificial Intelligence has immediately found acceptance. According to a study, 77% of UK retail directors think that AI, deep learning and machine learning implementations will have a tremendous impact on their businesses with 23% claiming they’re already seeing results


0-(1).jpgIt’s no wonder retail is a great fit. The technology can understand and interpret customer preferences to make more accurate product suggestions, manage inventory based on predictive modelling and even identify ideal store locations. The industry, valued at $126 billion in 2015, is expected to reach $3 trillion by 2024

Loyalty can be a tough metric to master. It can also make or break your business. Once you can accurately calculate customer acquisition costs and lifetime value in a reliable way, you’re an investment away from achieving scale. In a modern marketing ecosystem with 1-1 engagement becoming the rule rather than an exception, the old “buy ten get one free” punch cards of your won’t cut it.

In recent years, the supermarket giant Tesco dropped the number of offers it sent out by nearly two-thirds but massively increased its revenue from conversion and ROI by using this type of technology. Tesco achieved a 675 percent growth in its bottom line, as a result of its data-driven loyalty programme. By analysing customer data, Tesco found that 80 percent of the discounts and offers utilised by customers came from 20 percent of the offers generated. This prompted a reduction of offers from 750 to 300 a year, amounting to approximately $600 million savings in promotion expenses while increasing market share

Machine learning creates enormous efficiencies because you no longer have teams of campaign managers generating and managing hundreds of offers – many of which are actually delivering negative ROI. So instead of sending out 100 offers, you can send out 30 offers but each one of those 30 offers will have a much higher conversion. And not only is that a much better use of a business’s time and energy but it will also surprise and delight your customers when they start to receive offers that actually matter to them.

Today, the brands who aren’t already researching or employing AI could be operating with a disadvantage.

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
How to Review a Website — A Guide for Beginners

How to Review a Website — A Guide for Beginners

A company website is crucial for any business's digital marketing strategy. To keep up with the changing trends and customer buying behaviors, it's important to review and make necessary changes regularly...

Digital Doughnut Contributor
Digital Doughnut Contributor 25 March 2024
Read more
The Impact of New Technology on Marketing

The Impact of New Technology on Marketing

Technology has impacted every part of our lives. From household chores to business disciplines and etiquette, there's a gadget or app for it. Marketing has changed dramatically over the years, but what is the...

Alex Lysak
Alex Lysak 3 April 2024
Read more
The World Is Shrinking: 6 Degrees of Separation Is Now 2!

The World Is Shrinking: 6 Degrees of Separation Is Now 2!

Six degrees of separation is not just a party game, it's a reality. Everyone is the world is interconnected, and thanks to social media, that connectedness gets tighter and richer each day. See the research...

Scott Christley
Scott Christley 9 August 2017
Read more
10 Factors that Influence Customer Buying Behaviour Online

10 Factors that Influence Customer Buying Behaviour Online

Now is an era where customers take the center stags influencing business strategies across industries. No business can afford to overlook factors that could either break the customer experience or even pose a risk of...

Edward Roesch
Edward Roesch 4 June 2018
Read more
Cats and Dogs Boost Your Business By 300%. Here’s How.

Cats and Dogs Boost Your Business By 300%. Here’s How.

It’s the age-old question that has endured ever since the creation of the internet: are you a cat person or a dog person? Or do you love both cats and dogs? We have both dog lovers and cat lovers at Sortlist, so it...

Aline Strouvens
Aline Strouvens 27 August 2021
Read more