6. Artificial Intelligence
AI involves machines
that can perform tasks
that are characteristic
of human intelligence
but on a greater scale
Machine Learning
A process for gathering
information and analysing
data to provide learnings for
AI to be successful.
Predictive Analytics
A specific set of algorithms
that provides the likelihood
that something will happen
in the future, eg likelihood
to make a purchase.
6
7. Predictive
modelling
Customer ID
& Cross-device
tracking
Orchestration
Reporting
& Analytics
DataIntegration
Personal
& Demographic
Onsite Behavioural
Data
Engagement
Data
Transactional
Data
Mobile & Device
Data
Data
APP Data
Lifestyle Data
Email
Direct Mail
Paid Social
SMS
AdWords
Web
Push
Store
Multi-channel
& Data
Segmentation
7
8. Single to Multi-
purchaser Model
Unsubscribe
Model
First Purchase
Model
Lapsing
Model
27.5%
INCREASE
IN CONVERSION RATE
114.6%
INCREASE
IN SALES
8.8%AN 83.5%
INCREASE
IN SECOND
PURCHASES
(MONTH ON MONTH)
INCREASE
IN RETENTION
909.6%
INCREASE
IN TRANSACTIONS
31.05%
DECREASE
IN UNSUBSCRIBES
103.83%
INCREASE
IN REVENUE
8
10. Travis Perkins
Predict Customer Churn
PROPORTION
OF CHURN RATE
3.1% 2.9% 1.4%
Jan Apr Aug
Feb Mar Jun JulMay
54%
IN CUSTOMER
REDUCTION
CHURN
LAPSING SEGMENT
ACCOUNTS FOR
48.3% OF
REVENUE
10
11. Travis Perkins
Predict VIP’s Model
PROPORTION
OF VIP’S 2018
3.2% 3.8% 5.8%
Jan Apr Aug
Feb Mar Jun JulMay
SPEND PER
CUSTOMER HAS
INCREASED
£194
11
12. We predicted a 46%
growth In LTV over the
next 12 months
Sept 2017 Sept 2018
However we exceeded
this target by 38%
12
13. By 2020, customer data platforms will power
20% of current multichannel marketing hub
deployments
By 2020, over 50% of multichannel marketers will fully
leverage multidimensional segmentation and predictive
analytics to engage with consumers, up from 35%
who did so in 2017.
Source: Gartner - Smart Hubs and Dumb Spokes13