The pandemic has accelerated the digital transformation of the retail industry to achieve the integration of online and offline sales. However, as third-party cookies are about to become invalid, the iOS platform is enabling the new SKAdNetwork technology, and the changes in privacy policies, enterprises are faced with difficulties in digital transformation and data marketing. Therefore, the multinational AI company iKala uses the omnichannel customer data platform iKala CDP under its iKala Cloud, as well as the smart digital cloud marketing of iKala’s subsidiary CloudAD, to help clients identify golden business opportunities.
Because of the pandemic, competition in online shopping has become increasingly fierce. When ETMall actively expanded new customer sources, it faced three major challenges: an inability to identify golden audiences among members, product deliveries not meeting customer preferences, and a reduced conversion rate for remarketing effectiveness. As such, through the GA data analysis service of CloudAD and the implementation of iKala CDP, ETMall reintegrated its data and got a comprehensive grasp of customer profiles to establish data-driven marketing strategies.
iKala CDP helps marketing personnel understand the values of each member by using AI models for conversion probability, predicted lifetime value (pLTV), activation rates of sleeping users, and churn rates, so that product recommendations and promotional plans will be closer to customer needs. Finally, the four major golden audiences are refined from the customers: non-purchasing members, sleeping members, general members, and loyal members. These four types can then be further categorized into new customers or repeat customers based on their consumption behaviors, thereby helping the marketing staff design different marketing communication strategies by combining the audience’s size and propensity to consume.
Take the non-purchasing members for example. The key of marketing is to control advertisement costs; therefore, the marketing staff should identify the best-selling products for the season to encourage these members to purchase them. In terms of the actual figures of the effectiveness of implementation, the average order amount for the new customers that were more difficult to convert in the past increased by 52%, and the conversion rate increased nineteenfold. As for members who had already made purchases, the marketing staff selected corresponding products to communicate to them through member values, further reducing the cost per click by 13% and the purchase cost by 15%.
For the future management of members and customers, brands must first use AI to compute the golden audience and get a grasp of the member value of each group in order to develop marketing strategies effectively. iKala CDP has powerful machine computing and learning, as well as built-in audience prediction models; it can integrate different data sources to compute the weight conditions and quickly help brands identify member values.
(This article was reproduced from the Economy Daily News.)