Personalizing your promotion level by customer lets you convert more while protecting your margin. But calibrating the right offer for every profile isn't easy without AI.
It's one of the most common use cases for predictive AI in CRM, part of a series breaking down, one by one, the concrete uses of Batch AI Predict. To understand why a predictive score only creates value once it's activated, start with our framing article.
Key takeaways
- Sending the same promotion to your entire base forces a losing trade-off between conversion and margin.
- The promotion recommendation score predicts the optimal mechanic for each customer, from all available options.
- It maximizes both the customer's conversion probability and the brand's margin rate simultaneously.
- Measured via A/B test: +8% margin rate and +25% conversion rate.
Why is it so hard to balance conversion and margin?
Sending the strongest promo to everyone maximizes conversion but erodes profitability. With no way to calibrate the offer customer by customer, you're stuck between two bad options. The same trade-off shows up on send pressure: a uniform message, like a uniform promotion, hurts perceived relevance.
How does Batch personalize the promotion per customer?
With Batch AI Predict, the displayed promotion is personalized customer by customer. The score assigns each customer the optimal mechanic and feeds the campaign's promotional section directly. The same logic applies to product content: a product block adapts to each customer instead of a promotion.
What is the score behind this use case?
Promotion recommendation predicts, for each customer, the optimal promotion type among all available options, maximizing both their conversion probability and the brand’s margin rate. This same value-based allocation logic also applies to exclusive perks, assigned by predicted future value rather than past spend.
What results do we see on this type of use case?
Measured via A/B test, margin rate rises by 8% and conversion rate by 25% over the period observed. Two results delivered at the same time, with no trade-off between them.
In short
Batch AI Predict's promotion recommendation score assigns each customer the optimal mechanic and displays it directly in the campaign. More margin and more conversion, at the same time.
To activate it on your campaigns, talk to a Batch expert.
Anna Guigner
Content Marketing Manager @ Batch
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