This is why our AI for Retail improves impact by +180%
Today, I looked at the recent numbers from one of our US retail clients we are serving through one of our partners. The SO1 Engine (developed by Segment of One) optimizes in the weekly emailing for the client to its CRM database by individually selecting the right offers for consumers. The result is quite fascinating: week after week the SO1 AI outperforms their current solution dramatically – reaching up to 180% improvement in redemption rate.
The client is a major and national US retailer and here is the setup that produced the above KPIs
- Medium: Email
- Recipients: >1M consumers
- Size of campaign pool: >500 campaigns
- Goal: Redemption Rate maximization (consumer happiness)
As a next step, the client wants to change the goal of the SO1 Engine to “Profit Maximization”. In this mode the Engine will optimize profit impact of the campaigns by also optimizing individual discounts per consumers (engine picks the right discount for the individual consumer).
For the last 2 years, this client has already used an advanced promotion targeting solution which is part of a larger renowned personalization suite.
So how can our AI targeting engine outperform the state of engines so dramatically? The simple answer is – it really understands consumers and does not just try to learn from past behavior.
Here is a more comprehensive summary:
The results that we are seeing today are just the beginning. We have a new version of our Engine in beta mode which will substantially outperform the current version. So stay tuned for more results or follow me on Linkedin.