For marketers looking to drive results while strengthening customer relationships, Forrester principal analyst Rusty Warner spoke in a Tinyclues webinar about the importance of engaging customers during moments that really matter.
“A lot of organizations are evolving to a point where they use segmentation – micro-segmentation or targeting,” said Rusty. “They are able to capture customer behavior, and that behavior will trigger a message or communication in a reactive way.”
But, Rusty warns, just reacting to customer events doesn’t build long-lasting customer loyalty or inspire customers to engage with your brand.
Instead, he urges marketers to deliver real value by being “more predictive in terms of anticipating the customer requirement, as opposed to in a reactive way, where we’re retargeting someone after the fact.”
Warner calls this concept “moments-based” marketing: Engagement with consumers at specific times and situations that occur during all stages of the customer life cycle – and across the full spectrum of physical and digital experiences, devices, and consumer- and brand-initiated engagement.
That seems like a daunting cross-functional goal for marketers. But Rusty sees a clear path forward for brands looking to deploy moments-based frameworks at scale.
“To address that customer in the moment that’s going to matter to him or her,” Rusty said, “our marketing technology investments need to change.”
Most notably, a shift to moments-based marketing requires data and analytics capabilities to capture millions of customer behaviors and detect correlations with products, offers and messages that will drive engagement. That simply can’t be scaled with traditional marketing technologies.
“The scale and sophistication are outpacing the abilities of humans to keep up with it,” Rusty said. “That’s where we see a real opportunity for artificial intelligence.”
“The level of data and analytics you need for moments-based engagement will come down to the ability of your organization to deploy artificial intelligence.”
– Rusty Warner, Principal Analyst @Forrester
Artificial intelligence augments traditional marketing technology with the ability to handle the complexity, volume and velocity of data and analytics in modern marketing.
Far from being theory, AI delivers results in marketing stacks. Forrester evaluated the success of a large retailer deploying an AI-based marketing solution to solve one piece of the modern marketing puzzle: improving the relevance of its omnichannel customer engagement to drive business goals.
The retailer, who had millions of customers and already employed complex, data-science-driven relationship marketing strategies, generated over $9 million in additional campaign revenue using the solution – with an ROI of 199%.
The “Total Economic Impact™ of Tinyclues for a Large Retailer,” a 2019 commissioned study conducted by Forrester Consulting, confirms that marketers on the frontier of moments-based engagement are reaping the rewards of artificial intelligence.
Sebastian Selhorst, principal consultant at Forrester, has worked with the retailer to apply Forrester’s TEI methodology: “With the introduction of Tinyclues, they improved campaign targeting and message relevance and generated more revenue. The campaign processes are more efficient now, and they improved their customer fatigue management in general.”
According to Sebastian, after implementing the Tinyclues solution, the retailer was able to:
- Improve existing campaign targeting resulting in significant conversion and revenue lifts
- Boost total campaign revenue by sending campaigns they were not able to target before, like new or strategic products
- Increase trade marketing campaign performance, driving partners to spend more on these campaigns and generating a new revenue stream
- Optimize productivity with targeting and planning that takes 5 minutes, down from 2 days
- Improve customer fatigue management with lower opt-outs and higher lifetime value
As measured in the TEI report, the business impact of Tinyclues for the retailer is more campaigns, better customer experience and less efforts as shown by the following KPIs:
“Real AI-first solutions like Tinyclues empower marketers to focus on what they’re good at, while putting AI to work on tasks that humans simply can’t scale,” said Richard Pasewark, COO and President of Tinyclues. “We’ve found the results of that synergy are game-changing for marketers and customers. For our retail clients, it elevates customer marketing and drives happier marketers and customers”.
“Tinyclues has changed the way we think about customer marketing. Before, we had a traditional, ‘one-to-many’ approach. Now, we are at ‘one-to-few’ and tomorrow we will be ‘one-to-one’. That’s a real game-changer. We know that one of the keys for success in retail is personalization, and Tinyclues helps us in this journey.”
-Digital marketing director, large retailer
Missed the webinar? Don’t sweat it.
Watch the recording of our presentation with Forrester!
You can also download the full Forrester study here.