Repeat business is easier than obtaining new customers, suggests conventional marketing wisdom. This may be set to change, thanks to AI, with at least one new tool transforming the business of customer acquisition.
The company behind the tool, Rakuten Marketing, claims that its AI tool moves beyond antiquated profiles, segments, demographics, and even assumptions about which customers are the best fit.
Traditional marketing wisdom says repeat business trumps customer acquisition, for example one report suggests that new customer acquisition costs up to five times more than driving a repeat purchase. But according to Rakuten Marketing Prospecting, AI and machine learning can be used to better inform marketers of audiences that would have otherwise gone unnoticed.
The claims made by Rakuten builds on a survey it produced, looking at the habits of the ‘global shopper’.
Traditional marketing assumptions can have a negative impact, suggests the company and cites as an example how 52% of respondents to its survey in China focus their gift buying on Amazon Prime Day, nearly twice the proportion of US consumers. By contrast, Black Friday, is not as US-centric as it used to be. The occasion is now winning traction across France (24%) and Germany (26%).
Rakuten said; “If marketers looking to acquire customers across markets are planning their activity to attract only those consumers who match the behaviour of their existing customers, huge opportunities may be missed.”
The AI product itself builds on four core technology and data components:
• Audience Amplifier, a proprietary audience-creation platform,
• A proprietary demand-side platform (DSP)
• Rakuten ecosystem data, representing the most brand-relevant and purchase-ready consumers.
• Partner Enriched Audiences.
Rakuten Marketing CTO, Dr. Neal Richter comments, “With new channels like connected television (TV), audio and digital out of home becoming part of the programmatic ecosystem, Rakuten Marketing Prospecting has the data to enable seamless experiences. Our AI and ML-driven technology means marketers can dynamically adjust to the specific needs and interests of potential customers.”