AI Boosts Marketing ROI for US Retailer

A leading US retailer tackled marketing challenges with AI, resulting in 10x faster actionable insights, a 10-month extension of planning horizons, deeper channel understanding, and $300 million in unlocked media buying opportunities.

Problem Statement:

Why a leading US retailer needed AI for marketing optimization:

● Stale Data, Missed Opportunities: Slow data processing meant outdated insights, hindering effective media spend allocation in a rapidly evolving media landscape.

● Channel Blind Spots: Traditional methods couldn’t identify crucial interdependencies between marketing channels, limiting media spend optimization and ROI.

● Decision-Making Lag: Inefficient processes hampered agility in adapting to changing market trends and customer preferences, putting them behind more responsive competitors.

Results:

☑️ Insights 10x Faster: Actionable data delivery reduced from 5 months to 5 weeks.
☑️ Planning Extended by 10 Months: Enabled a more proactive marketing strategy.
☑️ Deeper Channel Insights: Monthly measurements revealed performance nuances across channels.
☑️ $300M ROI Boost: Unlocked media buying opportunities for additional sales gains.

AI Solution:

To address these challenges, the retailer partnered with Accenture to develop an AI-powered solution that would revolutionize their marketing operations. The solution encompassed two key components:

1. Enhanced Data Flow: LAccenture’s pre-integrated AI platform, AIP+, was seamlessly integrated to automate data aggregation, significantly reducing data processing time by 80%.

2. Smarter Modeling with Machine Learning: Manual hypotheses were replaced with advanced machine learning algorithms, enabling the proactive identification of channel interdependencies and unlocking deeper insights into sales drivers.

3. Continuous Improvement: The solution facilitated monthly model refreshes, ensuring continuous improvement and adaptation to the latest data and market trends.

This collaboration demonstrates the power of AI in optimizing marketing and achieving significant ROI.

References:

1. How a leading US retailer used AI to improve marketing spend

Industry: Retail
Vendor: Accenture
Client:Leading US Retailer