Customer loyalty is a huge cost center for most brands. Research shows that companies spend about 4% of their revenue just on activating customers, and according to Loyalty One, the entire 2019 customer ecosystem accounted for an astronomical $323 billion globally.
But 2020 is fast becoming a year of corporate cutbacks, and marketers are now being asked to maintain and even increase customer loyalty with fewer resources. Achieving that goal means increasing your execution speed while lightening your marketing team’s task load—something that can’t be done without the aid of technology.
How quickly your marketing team is able to execute its strategies and campaigns depends on a few factors. First, have you advanced beyond using segmentation to target your campaigns? Secondly, are you able to quickly glean insights from your data? And lastly, are those insights directly actionable?
If you answered no to any of these questions, it’s likely that your team would see increased efficiency from implementing a loyalty offer automation solution—particularly one like Formation that uses artificial intelligence (AI) and machine learning (ML). This is because ML will continuously learn from your data, and AI enables the solution to immediately act on those insights, without any action needed from you, the marketer.
Case studies show that major brands like Starbucks have seen a 10x increase in the execution speed of marketing operations after implementing Formation’s automated offers. To understand how that’s possible, it’s helpful to compare the way manual marketing processes have been done in the past with the way they’re done using a marketing automation solution.
Historically, marketers have developed their strategies by segmenting customers using demographics in order to create targeted initiatives. But as customer expectations for relevance keep increasing, the demands on marketers have increased too. The “traditional” marketing process now goes through all of these steps:
Even though this is a lengthy process, note that it does not include optimizing the offers based on consumer behavior, tracking or testing new offers during this time period—as marketing teams usually wouldn’t have the time or resources to update 1,000 offers. This lack of marketing efficiency often results in poor ROI.
When you implement Formation’s solution, a number of tasks are automated, and the resulting process looks quite different:
As the offer engine keeps learning about each customer, Formation’s AI is able to scale to an unlimited number of individually personalized offers, millions compared to thousands created through segmentation. ROI is also much greater than microsegmentation, because Formation continually examines customer data and finetunes offers to keep them relevant.
Most critically though, nearly all the steps in the process are automated, saving teams significant time and resources, and allowing for 10x faster marketing operations execution compared to traditional methods.
Making your marketing team more efficient and successful is possible even with limited resources. But you must identify the right AI and ML solution to help with the heavy lifting. Our latest white paper explores how to do this in depth—read it to learn what capabilities to look for, how to get leadership on board, and how to implement and scale more quickly.