According to “The Radicati Group” more than 3.8 billion people around the world used electronic mailboxes in 2018, sending and receiving about 281 billion emails per day. The flood of information continuously flowing to each recipient is equally large. To prevent you and your newsletter from drowning in the recipient’s inbox, pay special attention to the following two points: up-to-dateness and relevance. This blog article covers how you as a dealer can implement those two things with the help of big data and artificial intelligence (AI).
The inner values count: personalized product recommendations for each recipient
Personalization has long been an important factor in success, increasing click rates and purchase rates while reducing the number of recipients who unsubscribe. But personalization is much more than simply personalizing the approach in the subject line or text. Newsletters gain huge amounts of relevance by using personalized product recommendations. A recommendation engine like the artificial intelligence-based prudsys Realtime Decisioning Engine (prudsys RDE) helps determine which content is displayed for each individual customer once the email is opened. This works through so-called text images which contain detailed information, prices and product images. In so doing it is possible to reload the content in emails that are only defined after they are sent or are updated in real time. For to the deals, it is not only the customer’s historical and current transaction data that is taken into account but also things like current inventory. And, because there is not always immediately time for online shopping, despite the intention to purchase something, you can also freely define how long the products, calculated in real time, are displayed in the newsletter.
Learning by doing: what artificial intelligence can do
As an AI-based software the prudsys RDE differs considerably from other recommendation systems. It works according to the principles of machine and reinforcement learning and, similar to a game of chess, is always one “move” ahead of the customer. Data is continuously and automatically collected, patterns are detected, potential campaigns are predicted and personalization rules are implemented in real time. At the same time, the AI continues to learn with each hit. It learns, for example, when the recipient clicks on a recommendation, which allows it to continuously improve its knowledge of individual customer preferences for use in future newsletters and other customer touchpoints. With the prudsys RDE it is possible to implement recommendations in the newsletter without any great effort. The required data including clicks, purchases and search requests is taken from the online shop and forwarded to our server and the recommendations calculated based on that information in real time are then sent back. The new campaign management starting with prudsys RDE 4.1 makes it even easier to design your newsletter campaign. In addition to the flexible configuration of recommendation elements, a real time preview or the creation of an HTML template for quicker integration into a concrete newsletter layout are available.
Creating added value: appropriate products, personalized discounts & content recommendations
Recommendations should not be exclusively geared toward the current or historical purchase behavior but can also be related to individual products, relevant categories or customer search terms. Complementary goods are an example of product-related recommendations. If I just purchased a dinner jacket in the online shop I am probably not going to be looking for another one right away. Instead of looking at my purchase history and suggesting in the next newsletter that I purchase additional suits, the AI software recognizes that it makes more sense to recommend a necktie or a bow tie. Incidentally, personalization does not have to be limited to product recommendations. Incentives in the form of personalized discounts or gift certificates combined with relevant products can also increase the purchase rate. Providing relevant additional information, whether it is recipes for the recently purchased sous vide cooker or a hairstyle tutorial to go with the new evening gown, can also be successful.
In the right place at the right time: intelligent segmentation
Even email campaigns such as those pertaining to a hip-hop artist’s new album or the limited edition of a sporting shoe manufacturer are in vain when sent en masse. To avoid scatter losses and not inundate recipients with irrelevant content, only address those customers for whom the product is actually of interest. This way, success indicators such as the conversion rate or customer retention can be increased.
Addressing different target groups is particularly easy to do with email marketing. In addition to taking into consideration personalized data (static data) such as age or gender, behavior-based data such as clicks or visits to websites have become increasingly interesting for intelligent segmentation. The prudsys Profiler deals with these based on different parameters such as purchases of a certain product category or brand and then generates the deals or coupons in a targeted manner. Speaking of campaigns: newsletter marketing is particularly well suited to omnichannel marketing. An email address obtained from the point of sale or social networks can join these same channels together in the following newsletter.
Firmly established: newsletters are an important part of the sales approach
The newsletter has always been one of the most important instruments in online marketing. The advantages are clear: not only are the costs associated with sending a newsletter minimal but it is also extremely flexible. Today’s definition of flexible is first and foremost to get away from the famous “watering can approach” and move instead towards 1:1 communication. Collecting and evaluating user data and strategically using what has been learned in real time is the prerequisite for further optimizing your email marketing.