Machine Learning technology delivers much deeper customer engagement. Typically, 3 to 5 percent is the average conversion rate from rules-based marketing. Machine Learning-based marketing typically delivers 10 to 20 percent in the first year and then ramps up to 30 to 50 percent over the next three to five years.
The reason for these lower conversion rates is that most companies still use rules-based, segmented marketing, where a customer is put into a ‘persona bucket’ or into a predefined segment.
But in this new generation of marketing that is not going to work anymore. The problem with segment driven, marketing automation is not just low conversion rates. Rules-based marketing automation systems are actually fuelling consumer frustration and increasingly creating brand damage. And as more and more organisations put marketing automation into the business with rules that are dumb, it creates more and more clutter in peoples’ inboxes. In short, customers are disengaging from brands and hitting the ‘delete’, ‘dump’ and ‘unsubscribe’ buttons.
Instead, businesses have to be able to send personalised offers and messages; send offers that predict a customer’s behaviour and be responsive so that if customers don’t like an offer or don’t respond to it, then they don’t get it again. And finally it has to be real time and contextualised, meaning that if a customer is in a particular place then show them offers that reflect where they are and make those offers easily and instantly redeemable.
Businesses of the future need to build intelligent engagement programs that use a machine learning capability which will enable it unlock the power of data. Quantiful’s Pinpoint allows you to do this.
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.
Wouldn’t you like to know what your customers are going to buy next and contact them with a product offer exactly when they are thinking about it? Then visit Quantiful’s website and get in touch.