Using segmentation to target your email subscribers has also been shown to increase sales. In a study conducted by Optimove, it was found that the smaller the segment, the tighter the targeting, the greater the impact on sales.
The only way to send messages that resonate with your customers is to understand their likes, dislikes, motivations and the situations in which they’re most likely to engage with you. This kind of precise personalization sounds great, but until recently it’s been too resource-intensive to do at scale.
When fighting for the loyalty of your customers, should you rely on front-line intelligence or put your trust in a robust dedicated central intelligence unit?
Research from Optimove found that the smaller the target group, the larger the uplift. For example, targeted campaign to groups with up to 150 customers had at least a $1.90 uplift per customer, while target groups of 1,500+ had an uplift of at most $0.50 (almost a 4:1 ratio).
Tel Aviv-based Optimove, for example, is a marketing automation platform that uses predictive analytics to prioritize a company’s existing customers, rather than use their resources to acquire new ones.
Consumers want more personalized experiences online, and according to one expert, AI is one way to increase the personalization level – and increase customer loyalty.
There’s certainly still a place for loyalty programs and points in a business’s CRM strategy, but ultimately, such programs are just one piece of the puzzle when it comes to building loyal, lifelong customers.