Applying artificial intelligence (AI) to segment your customers for accelerating sales growth offers numerous advantages over traditional segmentation models. Auto-segmentation is the process of segmenting customers into cohorts using machine learning that can provide intelligent product recommendations, beyond historical transactions and demographic attributes. A multi-layered recommendation delivers targeted marketing activities to specific groups, launch features aligning with dynamic customer demand, and insights to the development of product roadmap. With consumer product goods, consumer needs and desires change significantly based on where they are and who they are with. It means one customer may fit into several segments depending on their environment. An occasion-based segmentation is essential in this context to effectively tailor product and content recommendations.
Accurate segmentation on an ongoing basis is one of the cornerstones of an effective positioning and marketing campaign, and product recommendation. Auto-segmenting your customers into cohorts means that you can effectively position your product and target messages to customers with similar characteristics and needs. This personalization means that marketing messages will be more relevant to the individual reading them. With greater relevance, response rates are likely to be significantly better than they would be for a single non-personalized campaign.
ICURO has developed a novel deep learning system for segmentation and recommendation based on an auto encoder neural network. Retail data has high dimensionality involved and by applying the context, the semi-supervised and unsupervised machine learning techniques are implemented with factors such as patterns, time and transactional, personas, behavioural and geo-spatial for hyper localization. Using artificial intelligence to segment your customers offers a number of advantages such as the removal of human bias, finding hidden patterns in data that a human marketer may be unable to spot, automatic updating of segments in a rapidly changing market with an unlimited number and size of segments. Our AI system enables a higher level of personalization but needs little maintenance or human intervention, highly scalable, and auto-segmentation improves your productivity and the effectiveness and ROI of your product positioning and marketing campaigns overall.