STEP 1 Personalized Promotion

Personalized promotions are based on precisely tailoring offers to the individual needs and preferences of customers. What distinguishes personalized promotions from standard ones is the use of AI engine to select products individually for each customer.

How do personalized promotions work?

Personalized promotions use advanced algorithms to identify purchasing preferences, transaction history, and even temporal context.

The result of the AI engine’s operation is a personalized list of promotions, with a flexibly configurable list of elements, tailored to the individual preferences of the customer.

Mechanism of using a personalized promotion

The following figure presents the mechanism of using a personalized promotion:

Here’s how a campaign works based on the pool of available promotions and customer behavior, both fed into the artificial intelligence (AI) engine:

1. Input data

   • Available promotion pool: Contains different promotions, offers or discounts available to customers.

   • Customers’ behavioral data: Information about behavior, shopping preferences, transaction history, interaction on website, and so on.

2. AI Engine analysis

   • The AI engine analyzes the available pool of promotions along with customer behavioral data.

   • The AI engine uses advanced machine learning algorithms to identify patterns, preferences and trends.

3. Offer personalization

   • Based on the AI engine’s analysis, a personalized list of promotions is created for each individual customer.

   • The use of advanced data analyses and artificial intelligence enables effective personalization, which in turn increases customer loyalty and improves the shopping experience.

Business process of creating a campaign of personalized promotions

The following diagram shows an example business process for creating an effective personalized promotional campaign using Synerise’s Communication and Analytics module:

1. Product selection

   • Conduct a market and seasonality analysis to identify the best-selling products and those that are currently attracting significant interest.

   • Include both new products you want to promote and products that are being phased out of your range in the promotion pool.

   • Select products from different categories to make promotions more appealing and to reach different customer groups.

2. Promo mechanism

   • Choose the right promotion mechanism that best suits your goals and customer preferences.

   • Consider different options such as percentage discounts, buy one get one free offers or a wide range of flexible promotions that can be customized to meet individual needs.

3. AI engine setup

   • It’s time to set up the AI engine. It’s important to understand that personalized promotions in Synerise are based on artificial intelligence, which allows the creation of offers tailored to individual customer needs.
   • To fully exploit this potential, consider creating and testing at least 50 promotions.
   • It’s also important to note that this stage is closely linked to the previous one - the AI engine learns from the data collected. The richer the activity history is, such as customer’s transactions, the more precise and personalized the promotions will be.

4. KPI tracking and measurements

   • Define key performance indicators (KPIs) to measure the effectiveness of promotions, such as conversion rate, average order value, return on investment (ROI), and so on.

   • Regularly monitor and collect data on the effectiveness of promotions to accurately assess their impact on sales results and customer retention.

5. Optimization and improvements

   • Continually monitor the results of promotions and identify areas for improvement.

   • Continually refine your promotional strategies, both in planning and execution, to maximize the potential of promotions and increase their effectiveness.

Through careful planning, the use of appropriate promotion mechanisms, the use of artificial intelligence to personalize offers, and continuous monitoring and optimization, you can create promotions that capture customer attention, increase sales and improve customer loyalty.

With such a well-prepared personalized promotion list, the offer will be more relevant to the customer’s needs and the likelihood of a purchase will increase thanks to the use of the AI engine.

Next step

You already know what is a personalized promotion in Synerise, in the next article you will learn how to create one.