How you can use AI in retail
AI in retail can, among other things, help you see if a customer’s engagement is low. And there are many factors that can cause customers’ engagement levels to drop. It can be based on changes in your product line, your brand’s style or quality level, a new competition to the market, the content you send out, or how often you send it. The reason for a lower commitment can be highly individual and requires different types of actions. When you try to create segments or trigger automation based only on what has already happened you are often too late to win back the customer anyway.
Use predictive scoring to get ahead
With Voyado’s predictive scoring you will:
- Buy yourself time by getting to know what will happen before it actually happens
- Get insights about your customer behavior so that you can build action plans and steer customers back to your desired direction.
And remember, with the right action plan it is possible to fight dropping engagement rates no matter what the underlying cause is.
How it works in Voyado
By using predictive scoring, you can get proactive. You will know if your customer is showing a healthy interest in you, starting to decline, or are on the move away from you. You will see the expected customer lifetime for each customer and the Customer Lifetime Value. Voyado tries to predict and learn over time so that you can stay ahead.
Here is an example of how to use the predictive scores in Voyado.
||Made a purchase recently
||No recent purchase
||This customer is very likely to be a happy customer that enjoys buying from you. Take good care of their loyalty.
||This customer has been absent for an abnormal amount of time but is likely to have a continued interest in buying from you. Maybe it’s time to remind them to drop by the store?
||This customer is at risk of losing commitment. Although they will continue to shop, there is a risk of reduced frequency in the future.
||This customer does not seem to have the same interest in buying from you as before. Maybe it’s worth investigating their reason behind this?
||This customer is at risk of no longer being your customer in the future. Take extra care of your relationship and maybe you will keep them a bit longer.
||You can’t win them all. This customer does not seem to have a great interest in being your customer anymore.
This example is a great way to understand in which direction your customer is heading. A customer can be seen as “Active” even if he/she has not made a purchase recently. This is based on the fact that they have not shown any other signs of declined engagement and still show high interest in your communication.
This example also shows that a customer that recently made a purchase from you can be at high risk of churning. The score indicates that this might have been one of the last times the customer bought something from you – if you don’t take action.