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Think of the initial result like a springboard to deliver more experiences for the customer, leading to longer term changes in behavior such as an ongoing pattern of more frequent visits or bigger baskets. The offer itself can be a way to identify a customer and start building out a profile, recording events such as whether or not they redeemed an offer, which type of offer it was, when they used it, what they purchased, and most importantly, whether or not any of these behaviors have continued. If the goal is for an individual to continue to try new products or to refer to new customers, determining a time frame for attribution is an important part of effective measurement. But optimizing a discount effectively really means that you are improving its ability to change behaviors over time, so that you don’t have to keep discounting, or that you can reduce the amount of the discount or even the type of offer and achieve an equally desirable result.

We recently hosted a webinar with NCR, a global leader in banking and commerce solutions, that focused on creating Human Centered Experiences in restaurants and hospitality. For restaurants, reliance on 3rd party ordering and delivery platforms may have helped them stay afloat in 2020, but the price of doing business has cost them their most valuable asset: access to their own customers. Loyalty programs have always provided a platform for brands to communicate with customers, but they can also motivate customers to directly connect with brands instead of via 3rd party apps. By providing a bridge between you and your customers, a simple loyalty program gives you control over the customer experience and helps you to improve it over time.

We recently created one such model for a large pharmaceutical company, applying a subset of data from a study to a large population with a 90% accuracy rate. To explain more about it, we talked to our client Julie Kenney, COO, and Co-Founder of 2nd Spark, to learn about this real-world example of a large pharmaceutical company using look-alike modeling in conjunction with a research study. They wanted to customize communications based on these personas – for example, a physician who is naturally skeptical of a new FDA approved drug would receive content centered around the hard efficacy and safety statistics while another persona might receive content about the administration of the drug – things like dosage, frequency. We partnered with Clutch to take the data from the 600 person sample and used machine learning and look-alike modeling to assign a persona to the remaining 5,500 people.

As you’ve read and probably experienced yourself, the big headline for 2021 consumer behavior is the shift to e-commerce. Identifying and marketing directly to individuals or households with a high lifetime value will be the strategy du jour, increasing reliance on customer data and marketing platforms that can marry up the two disciplines (data + marketing), personalizing messages for niche audiences. (Buy Online Pick up In Store) have been readily adopted by consumers, and the blurred lines between online and offline shopping experiences will continue to present new opportunities for brands to meet customers where they are. Return policies and experience will be an important intersection point for retailers, as they try to manage the huge influx of returns from e-commerce purchases.