Competition in retail is intensifying, making personalized communication a critical business issue. Instead of relying solely on Meta or Google's algorithms, which are yielding diminishing returns due to cookie limitations, retailers can use AI to identify much more accurate target audiences based on their own customer data.
Historically, companies had to combine multiple solutions in data storage, machine learning, and analysis with a large data science team to achieve the same results that Sift Lab can present in just a few minutes. How is this possible? Sift Lab is part of the "new data layer" - a platform placed on top of the current data architecture, where data is seamlessly mixed with machine learning, making the data value chain ten times more efficient. This is also known as "data-centric AI.
"Sift Lab's platform collects data on everything from purchase history to preferences and behaviors, efficiently handles all fragmented customer data, and then visualizes the insights in an easily understandable way. Users can easily manipulate the data and, through AI analysis, identify groups likely to purchase, those interested in specific products, and those likely to generate large future order values. These AI-generated audiences and individual product recommendations can be used directly in all channels, in real-time. AI is no longer a "black box" but can be fully controlled by the company, which can track results, adjust with rules or filters, and add new smart data to quickly expand target audiences.
Advantages of AI-generated insights and audiences include:
- Improved seed audiences for lookalikes to Meta / Google with +30-40% in ROAS
- Automated product recommendations and content in Meta & Google, web, app, and email
- Easy tracking of customer actions, follow persona segments in real-time
- Quick access to sales, customer, and product KPIs, and collaborate on goals and measurements across all parts of your businessBidding on future order value instead of product margin on Google Shopping
- Add filters and data to any segment or recommendation, e.g., in stock, above/below a certain price, etc.
Strong Growth Achieved
One of the long-time beneficiaries of Sift Lab's advantages is David Olsson (Head of Digital Marketing), who has worked in DIY retail for the past five years and previously as a consultant at several well-known agencies. With a strong business mindset and extensive retail experience, he has used the platform to create significant growth in his assignments – with reduced risk.
David Olsson - "In all the projects I've driven, the questions have been: how do we find our customer, what do they want, and how can we act on the data we have? Traditionally, many have turned to surveys to find their typical customer; I consider this an outdated approach. With Sift Lab, I perform a rapid analysis of what customers actually do and are likely to do. Based on this data, I can then find target groups/look-alikes with, for example, Google or Facebook. It gives a great handle on the business."
An Invaluable Tool
Since the entire analysis occurs in real-time in the cloud, it's easy to bounce hypotheses, test ideas, and model the business on the spot. During the process, one can directly see patterns and thus work predictively, says David."Connecting different product and customer segments in this way is very effective; at one company, I managed to beat 30 days of sales compared to the previous year in just four days, also increasing the sales breadth from four to 60 products."David's way of modeling target groups with AI in Sift Lab's platform was groundbreaking and enabled precise data mapping of customers' interests and behaviors in real-time. The target group could be used directly in the ad tool. "Not only does accuracy increase significantly with this method, but it also saves a lot of work as you can push the target group directly to the ad tools. Thus, it is an invaluable tool for retailers," concludes David.
AI Drives a Shift in Marketing
"AI enables the next generation of marketing, where we move from marketing to categories and segments, to presenting relevant products to an individual on external channels such as TikTok, YouTube, and Instagram. Sift Lab's platform finds the right individual, and in combination with generative AI content platforms, the AI can create ads or videos for each individual product. This approach is much more accurate and exponentially more time-efficient."
Linda Hellström, CEO
0761-12 19 09
linda@siftlab.com
