Using artificial intelligence, a campaign management company was able to achieve 62% increase in revenue per engagement
Artificial Intelligence is being used to help companies better target campaigns to those customers that are most likely to engage with them. Targeting non-receptive donors with direct mail is an expensive mistake. If we knew who was most likely to engage in campaigns, we could prospect with confidence, maximize donations per campaign and provide an excellent customer experience which would allow us to realize the full lifetime value of supporters.
“Whether marketing to a house file or to prospects, targeting the
wrong audience costs more than just postage and packaging. It can drastically
reduce the lifetime value of existing customers which weakens your
base and dilutes your marketing efforts across the board.”
A reputable fundraising campaign management company in Washington, D.C. wanted to know if it was possible to accurately predict who would be the most receptive to their direct mail campaigns, thus the most likely to donate. They have been meeting their customers’ expectations for 27 years and are experts in direct mail fundraising. However, their most critical campaign decisions were dependent on human experts that relied on a combination of traditional analytics reports and accumulated domain knowledge to decide how to test and roll out a campaign. They achieved good results most of the
time, but they wanted great results all the time. This meant they needed a system that could predict both response rates and amounts so they could optimize their outreach, and their return.
Where does AxonAI step in?
Artificial Intelligence and Machine Learning can be very effective at providing insight if given enough of the right kind of data and the proper training to learn from. In the real world, however, the data is often distributed across sources, incomplete, unstructured and sometimes dynamically changing. On top of that, the company was only able to provide a small subset of their
historical fundraising data in which to learn from, which presents a challenge in and of itself since it is much easier to find patterns in larger datasets.
To overcome these challenges facing traditional analytics, AxonAI has developed an “intelligence system” that was designed from the ground up to make sense of real world distributed, unstructured, incomplete and dynamically changing data. The AxonAI system does not need to see the whole picture before it can identify patterns. Our algorithms start learning from whatever data is available and work from the bottom-up to piece the picture together without needing to know what it looks like in advance.We used our advanced correlational intelligence algorithms to gain a holistic understanding of past campaigns and discover the deep correlational patterns that led to engagement. With this deep knowledge, we then analyze the variables in new campaigns and predict the most receptive audience. This will yield the best return rates at the lowest investment cost.
How did we do?
Using Axon:SmartCampaigns, the customer could send 27% less mail and still realize an increase in total donation amount of 18% with an increase in donation per request of 62% — all because we could connect, at a very granular level, the specific variables that mattered most to specific people which would motivate them to donate.
Artificial Intelligence can provide powerful insight to customer engagement if it can effectively analyze the real world data that companies deal with. With a tool like Axon:SmartCampaigns, marketers can focus their time and budget on only the very best audience that is most likely to engage with them, based on complex reasoning, in a repeatable way.