Deposit/Purchase Affinity in Target Group Discovery enables marketers to identify customers most and least likely to make a deposit or complete a purchase.
This approach is designed to optimize the above KPI by using predictive modeling to segment customers based on their probability of taking a defined conversion action.
How it Works
Identifying customers that will increase your desired KPI
To predict the future, we need to look back at the past.
This means to identify customers that will increase your desired KPI, we need to understand the behaviors of customers who have made the desired action.
In Target Group Discovery, the desired KPI is based on your main site KPI (e.g., Total Order/Deposit Amount, Number of Orders/Deposits). In the example below, we are segmenting customers based on their likelihood to make an order.
Our Machine Learning models analyze the behavior of customers who made an order in the last period. This allows us to identify behaviors that indicate a customer will make an order.
Predicting customer behavior
Our models then analyze customers in your chosen lifecycle stage against these indicators to determine their likelihood to make an order in the next month.
AI Target Group Discovery then leverages these insights to determine how you should segment your customers.
Identifying the optimal segment
Using AI, Target Group Discovery identifies the key attribute that will create the two most distinctive segments in terms of their likelihood of making an order:
- Segment 1 with a lower probability of making an order
- Segment 2 with a higher probability of making an order
In the example below, we can see the Number of Order Days, the Last Six Months is a key attribute, and that segmenting customers by less than 4.5 order days and customers with more than 4.5 order days will create two groups with the biggest difference in their likelihood to make an order.
This creates:
- Segment 1: ~27.21k customers with 14.89% likelihood of making an order
- Segment 2: ~3329 customers with 39.5% likelihood of making an order
Creating more granular segments
You can then continue to make these segments more and more granular, each time determining new attributes that will impact a customer’s likelihood of making an order.
As you keep navigating down the tree, AI will continue narrowing down the group to help you identify the customers with a higher (or lower) average probability of making an order.
Explore customers or create a new Target Group
Depending on your goals, you now have two options:
- Continue your analysis of customers and refine your Target Groups in Customer Explorer.
Once you are redirected to Customer Explorer, your customers will be automatically segmented with the relevant attributes identified in your Target Group Discovery.
- Click ‘Create Target Group’ to create the first building block of your campaign. Once you’ve saved your Target Group, you can go to the Campaign Builder and execute your campaign.
Use Cases
Hit targets with revenue-maximizing campaigns
When it comes to the end of the quarter, and you need to hit marketing targets, we often face increasing company revenue in a short time frame.
Since it’s difficult to determine which customers will generate the most value, the traditional solution blasts an offer to all customers. However, this approach yields lower response rates and ROI as customers may not receive the best campaign, creating a poor customer experience.
This is where AI Target Group Discovery comes into play. Rather than compromising on personalization to hit last-minute goals, Optimove’s AI discovers the customers with the highest likelihood to convert.
By capitalizing on these customers, marketers can instantly deliver campaigns with the highest likelihood of maximizing revenue and meeting their targets.
Optimize marketing spend with varying promotions for different segments
To further optimize your campaigns and prevent profit cannibalization, marketers can deliver promotional campaigns strategically based on a customer’s likelihood to convert.
Rather than solely focusing on customers more likely to generate revenue and send them the same offer, you can target different segments with varying promotions. As a result, marketers have a higher chance of increasing revenue while reducing marketing spend.
With segments that are more likely to convert, you can send lower promotions, as some customers will take action without any incentive.
On the other hand, converting segments with a lower likelihood of conversation will need some extra groundwork. So, saving higher promotions for these customers is more cost-effective.
Accelerate customer insight discovery
Exploring customers and experimenting with different ways to segment them is key to being more creative with your personalization efforts.
Rather than starting from scratch, AI Target Group Discovery finds the most relevant customers in your database for you. Then, with a single click, you can further explore these customers to understand their behaviors deeper.
For example, leverage AI Target Group Discovery to identify segments with the highest likelihood of making a purchase. Next, continue your analysis in Customer Explorer to identify their favorite product. You can then leverage these insights to deliver personalized product-based campaigns.