Raman’s Predictive Segments: Let AI Fuel Your Customer Segmentation and Revenue Growth Strategy!
Written by
Dipanjan Bhatacharjee

Raman’s Predictive Segments: Let AI Fuel Your Customer Segmentation and Revenue Growth Strategy!

Customer segmentation is not a new process for us, marketers. The general rationale behind market segmentation is to increase engagement, repeat sales, CLTV, and so on.  

But, what is the true purpose of segmentation?

It is to learn as much as possible about your customers and use this information to craft hyper-personalized marketing campaigns that generate revenues. 

Big data and technology have created a 2-way flow of information between brands and customers that account for an entirely new set of customer behaviors and expectations around how, when, and where they can buy and use products, and in what form. 

Your customers’ preferences, needs, behaviors, etc. change over time, and you need to keep pace with these changes, remain relevant, and revise these segments with new data on real-time customer behavior. This means for your segmentation strategy to be effective, it has to be dynamic in nature to maintain context and relevance.  

As a smart marketer, you need to concentrate on the needs and behavior of your customers – which are rapidly evolving, rather than personality traits, which frequently persist through a person’s life. Don’t forget that segments are also being rapidly reshaped by technology, fluctuating economics, and new consumer niches.

Consider this: A recent study by EY shows how COVID-19 has pushed 53% of consumers to try new brands during the pandemic. This simply means in the current situation brand loyalty has taken a back seat.  But, this market landscape could change equally quickly too!

So how do you keep up? Is your current data-segmentation technique or practice good enough? 

To answer these questions, ask yourself an honest question: 

“Is my segmentation technique dynamic, and is it scalable to accommodate any customer or market landscape changes?”

If your answer is no, don’t fret! We, at Netcore Solutions, have just the solution to this pressing marketing challenge.

Enter Raman, our AI engine!

But, before we gain an advanced understanding of what Raman brings to the table, let’s take a few steps back.

Let’s first understand what predictive analytics means.

No, don’t frown! We had the same reaction but our in-house AI experts explained the basics to us and this is only going to set you up to better understand how Raman does what he does!

“Predictive analytics is the use of data, statistical algorithms, and machine learning techniques to identify the probability of future outcomes based on historical data. The goal is to go beyond knowing what has happened to “providing the best” assessment of what will happen in the future.” – As defined by SAS

A study by the Aberdeen Group shows that organizations utilizing predictive analytics achieve a 2X  uplift in their marketing campaigns when compared to organizations that don’t.

“So, how does this help me?” you may wonder

Recall the question we posed to you initially?

“Is my segmentation technique dynamic, and is it scalable to accommodate any customer or market landscape changes?”

We’ve established that we are in an era where marketing is all about relevance and personalization. Customers today expect this of brands and it is a key factor in customer retention. 

In recognition of the same, most marketing segments are driven by historical data. “Who made a purchase through my website or mobile app in the last 90 days?”, “Who engaged with my marketing campaigns in the last 90 days?”, etc are a part of most rule-based customer segments created today. Historical data is definitely a driver of marketing strategy and engagement tactics in this regard.

But, predictive analytics and modeling takes this utilization of data to the next level.

As marketers, there are several KPIs that are to be met. Be it acquisition, retention, etc, and of course optimizing your ROI. Predictive analytics plays a key role here.

With every customer interaction, marketers have access to huge volumes of data. Predictive analytics built on top of this helps you achieve the following:

  • Anticipate, recognize, and predict the future behavior of your customers
  • Improve multi-channel marketing campaign performance
  • Engage with customers that display a high propensity for future engagement
  • Create and deliver omnichannel personalized content, easily
  • Align future campaign content and messaging to your customers’ future behaviour
  • Increase your marketing ROI through improved customer engagement

Weren’t those few steps back helpful? Now, where were we? 

Ah! Yes…Enter Raman, our AI-engine and your marketing guru!

Raman’s Predictive Segments

Raman’s Predictive Segments leverage the power of machine learning coupled with predictive analytics to help you: 

  • Anticipate your customers’ behavior
  • Adopt a proactive marketing strategy instead of being reactive
  • Utilize your customer data to the maximum potential
  • Improve your multi-channel campaign performance
  • Improve your marketing ROI
  • Scale your other relevant marketing KPIs

So, how does this work?

As a marketer, you are bound to have concerns like:

  • I want to identify the customers who are likely to engage with my campaign
  • I want to identify the customers who are likely to purchase in the next 7 days
  • I want to identify the customers who are likely to convert with cross-selling campaigns
  • I want to identify the customers who are likely to go dormant on my App and/or Website
  • I want to identify Android users who are likely to uninstall my App, etc.

Raman helps you with all of this and much more. 

All you need to do is tell Raman about the concern you want to address and he will create 3 micro-segments based on the propensity score: Most Likely, Fairly Likely, and Less Likely.

You can then use these relevant micro-segments to target those customers more effectively through personalized campaigns across all channels or through customer journeys tailor-made to these micro-segments.

It’s a simple correlation. More the visibility on the potential actions of your customer base, greater the probability of you engaging in the most relevant and personalized manner.

Let’s look at an example to see how predictive segments is far more powerful when compared to regular segmentation:

Joe of an OTT Brand “WatchNow!” is in a bit of a pickle. The conversion rate of his free trial users into paid subscribers has seen a sudden but significant dip – below the average conversion rates for the month of September, 2020. He has been tasked with getting these rates back up to average.

“WatchNow!” has a monthly average conversion rate of 45% for their free trial users.
Joe sees that currently he has 100K users on free trial on the platform. He decides to run a campaign to offer coupons to increase the conversion rates.

Of course Joe can target all his users with such an incentivized campaign – offering them coupons, (utilizing a significant chunk of his budget), and probably a certain section of loyal “WatchNow!” users will convert anyway.

But, how can Raman help Joe reduce his costs and drive higher conversions, all through effective segmentation?

Joe can tell Raman that he wants to “identify users who are likely to purchase a free trial coupon” and Raman will create 3 micro-segments:

  • Most Likely to Purchase: 15K users
  • Fairly Likely to Purchase: 40K user
  • Less Likely to Purchase: 55K users

Now Joe is a smart marketer. He knows he doesn’t have to target the “Most likely to Purchase” segment. He can focus his efforts and spend his marketing budget to target the “Fairly Likely to Purchase” segment. 

He can then monitor his campaign performance and then make a strategic decision (if required) to then target the users who are “Less Likely to Purchase”.

With Raman accurately predicting exactly what kind of behavior each customer micro-segment is likely to take, Joe can take smarter data-backed decisions that help him hit his KPIs!

This was just a small example of the possibilities that Predictive Segments can unlock for you. So, consider this a tip of the iceberg of what Raman and you can achieve together!

What Does Raman Bring to the Table on Your Team?

  • Provides direction to your marketing strategy

With Raman’s aid, you can easily identify the customers they should be targeting for each marketing campaign or customer journey. With these insights, you can now easily craft a high-conversion marketing strategy that wins.

Now you don’t have to be crippled by the prospect of analyzing vast amounts of data or leveraging dynamic insights to maximize your ROI!

  • Creates value by improving your understanding of customers

As a result of Raman’s Predictive Segments, you can now develop a better understanding of the dynamics of the 3 micro-segments and the larger consumer market. 

Equipped with Raman’s insights into the perception and preferences of your customers, you will be able to project your products/services as valuable entities that your customers must use.

Show that you are truly customer-centric with targeted personalized marketing campaigns!

  • Develop a long-term competitive edge

Raman helps you anticipate what your customers need. This will help you plan your product or service roadmap effectively as well. You can then reach your customers before any other brand does, fulfill their evolving needs, and attain a competitive advantage over others.

Brand recall and brand loyalty will never be a problem for you!

This festive season and beyond – be sure you execute marketing campaigns with minimum hassles and achieve maximum customer engagement, conversions, repeat sales, and CLTV!

Well, what are you waiting for? Imagine having the power of predicting what your customers are likely to do next – at your fingertips!

Get in touch with us today and become one of the earliest adopters of Raman’s AI-led Predictive Segments!

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