Customer acquisition is a complex process where more marketing does not always translate to more customers. Even when retailers offer incentives such as coupons to boost sales, they need to target the right prospects with the value propositions that resonate with them most to maximize conversions. While traditional marketing segments customers into distinct groups based on their shared characteristics, these segments often overlook the individual and unique desires of every single customer. Retailers will be unable to optimize the conversion of their coupons if they are misaligned with the needs of the prospect, reducing the overall return of the marketing program. Unfortunately, the opportunity at stake when offering coupons to the wrong customers is that they could have instead been offered to other prospects who would have converted.
AI helps you maximize the return on investment of the coupons you send to prospects and existing customers by predicting whether they are likely to accept the offer. The predictions can be differentiated between different categories of products to identify which products are most attractive to every customer. Unlike traditional customer segmentation, AI models take into account the unique characteristics of a customer, taking into consideration a wide array of data that retailers collect through online and offline channels. As a result, your marketers are able to offer the right coupons to the best customers, ensuring that no coupon goes to waste in your efforts to acquire more sales.
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AI can help organizations across the board, no matter their industry, with a variety of internal and external challenger - from driving operational efficiency and optimizing expenditures to transforming marketing activities and improving forecasting.