Retail is Detail: Unlocking Customer Lifetime Value with AI and Data Science
Marketing leaders in Ecommerce and retail from some of the UK’s biggest brands gathered for breakfast on Tuesday 26th February at London’s Ivy Soho Brasserie. The agenda? Customer Lifetime Value – what Forbes once referred to as “The Only Metric That Matters” – in an age of AI and Data Science.
Fospha CEO, Sam Carter, welcomed Amazon’s Hayley Mirek, to discuss the importance of creating better brand experiences for customers while improving marketing efficiencies at a time when businesses are under huge threat by the pace of change in digital technology.
The theme of the morning was the need for businesses to deliver better experiences for customers; for Amazon, the customer must come first – everything needs to start and end with them. The only way organizations can realistically achieve this is to have laser-sharp understanding of the data. It’s the data that tells the story and helps us understand customers. Many businesses, however, struggle to make sense of the data because the customer journey is so complex and fragmented. The order, frequency and value of touchpoints are hard to determine when data sits in siloed teams across a business or in siloed channel reporting. How can marketing teams provide premium customer experiences when the data isn’t there to make sense of the customer journey?
Start Small & Grow
Connected data, automation and measurement are the foundational building blocks for innovating in this space. Key to success is first acknowledging that unified and fully connected data does not happen overnight – it’s a journey. Sam explained how retailers and ecommerce businesses should start by identifying the problem and define the big objective first and foremost. It can then be broken down into stages and phases – “start small and grow” he said. Businesses should be realistic about the problem in the first instance (and this shouldn’t be a lack of AI or data science) – asking guests instead “What pains do you feel on a day-to-day basis? If you remain focused on solving those pains, the data will point you in the direction of the solution which in turn, will determine your next steps.”
Pure Play Ecomm and Bricks & Mortar – Connecting the Dots
For Bricks & Mortar retailers, it became clear that measuring offline to online customer interactions is crucial for success. We heard that inspiration can be taken from markets like China, whose retailers use physical stores as shop windows to a world of digital products. Here, the customer experience is the primary objective – shoppers can browse, touch and feel products in beautifully thought-out concept spaces, scanning QR codes to save favorites and add to baskets. After, they can walk out hands-free safe in the knowledge that their product is on the way to their door (or saved for later purchase). It’s a connected data dream for a retailer and a better experience all around for the customer.
While the try before you buy concept isn’t new in the West – closer to home Apple shows us how the use of a physical store allows customers to be with the product and experience it first – are businesses finding ways of effectively measuring these touchpoints and tracking it back to the customer?
Fospha Marketing help marketing teams solve their biggest challenges. We use data driven multi touch attribution (MTA) and media mix modelling (MMM) to deliver marketing effectiveness. We build customer data platforms, using data science and AI to provide one view across all channels to drive ROI and customer lifetime value. Want to talk to us? Get in touch today!