In this article you will learn:
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.
What does it mean to increase your marketing ops execution speed?
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 ops 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.
Traditional customer loyalty campaign development does not boost marketing
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:
- Microsegmentation into 10-30 microsegments based on customer data
- Development of campaign strategy based on behavior modeling
- Creating up to 1000 unique offer variations for the different microsegments
- Offer testing
- Full campaign launch and measurement
- Total time required: 3-5 months
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.
Customer loyalty and marketing campaign plan development using AI and ML automation
When you implement Formation’s solution, a number of tasks are automated, and the resulting process looks quite different:
- Formation maps your customer data to identify actionable insights
- You choose your offer template(s) and your business objective, e.g. increasing incremental revenue
- Automated offers are individually personalized and sent to each customer
- Automated analytics glean insights from customer behavior
- Offers are continually optimized based on insights, resulting in increasing effectiveness over time
- Total time to initial launch: 10 days
As Formation's Offer Execution keeps learning about each customer, your marketing ops will be 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.
Optimize your marketing efficiency
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.
Are you ready for the future of marketing? Read how Formation helps brands reach digital maturity now.