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AI Target Optimizer: Artificial Intelligence for hyper-personalization and CRM performance

How IKKS optimizes the performance of its CRM program while controlling the frequency

The Challenge

Faced with the diversity of its catalog, IKKS, a French mid/high-end fashion brand founded in 1987, was facing a targeting challenge for its email blasts. The brand wished to optimize the performance of its CRM program while controlling the frequency.

Numberly thus implemented the AI Target optimizer algorithm in order to answer the following goals:

  1. Optimize the targeting of the emailing campaigns by increasing their relevance
  2. Increase the conversion rate for single-product email campaigns
  3. Reduce the frequency of messages to brand contacts
  4. Find new targets interested in the products highlighted

The solution

The AI Target Optimizer is an Artificial Intelligence algorithm that calculates which individuals are most likely to be interested in a given communication. This algorithm aims to select the target for which a given product will be most appealing. In parallel, in order to compare the algorithm’s performance, this target was also manually defined according to marketing segmentation criteria.

 

How does the AI Target Optimizer work?

  1. The algorithm determines the product typology linked to the email to be sent.
  2. Based on the consumer’s previous purchases, it identifies the trends leading to the purchase of this category.
  3. For each individual, the AI evaluates their likelihood of purchasing a given category.

 

The benefits of the system

  • Improve the customer experience, by reducing the frequency to prevent (message) fatigue, without compromising the performance thanks to higher quality targeting.
  • Increase conversion volume with precise targeting recommendations, aimed at individuals potentially difficult to target with traditional segmentation methods.
  • Reduce the environmental impact of campaigns by limiting the carbon emissions linked to email dispatches.

The results

We obtained excellent results by comparing the target defined by the AI Target Optimizer algorithm with the one defined manually:

Target Volume

divided in 3 for the same volume of conversion

+200 %

conversion rate on the campaign

40,000 news

highly relevant contacts targeted not present in the manually defined target

Discover the case in less than 2 minutes! (subtitles available in English)