Artificial Intelligence and Machine Learning Power New Business Model That Correlates Customer Engagement and Efficacy of Marketing Campaigns
Saudi Arabian pharmacy retailer Nahdi Medical Company has started utilizing the new marketing analytic models found on the Innovation Workbench, part of Oracle Retail Science Cloud Services, to develop customer churn analytics which will encourage repeat purchases. With 85 million annual customers across stores in 125 cities, understanding customer churn and identifying revenue opportunities became more complex as Nahdi scaled operations. Al Nahdi has started creating a new business model incorporating artificial intelligence and machine learning to correlate customer engagement with marketing campaigns to identify low-churn customers and reward loyalty. The scale of the cloud-based Oracle Retail Science Platform, the flexibility of the Innovation Workbench and the power of artificial intelligence and machine learning allow Al Nahdi to posture for more strategic analysis of consumer behavior while minimizing manual queries as they continue to grow.
With this new model, Nahdi can better understand campaign effectiveness and its impact on driving store traffic, increasing market basket size and encouraging customer loyalty. Nahdi can measure the likelihood of churn that helps define long-term retention initiative and campaigns. When using predictive churn probability, the business can flag customers for upcoming email campaigns and define targeted offers strategically within promotional campaigns. A common cloud-based retail science platform has significantly increased the speed to operationalizing innovation using a comprehensive retail data model in conjunction with productized sciences and Oracle’s industry-leading data science toolkit. These accelerators empowered the Nahdi team to focus on strategic initiatives that directly drive business growth, rather than spending cycles on technology, integration and data analysis. Nahdi has already implemented Advanced Clustering, Customer Segmentation, Customer Decision Trees and Demand Transference to optimize the performance and processes with Oracle Retail Category Management.
With Oracle Retail as a partner, Nahdi has all the tools necessary to focus on increasing value to their business through data science instead of building new solutions, algorithms, databases, and integrations.
“The Oracle Retail Innovation Workbench will allow us to leverage the latest artificial intelligence and machine learning to build our own predictive and cognitive analytics," said Dr. Khalid Tadlaoui, Vice President of Information Technology, Nahdi Medical Company.
“By taking the innovative Predictive models provided by Oracle Retail Science Cloud Service and couple them with our Analytics intellectual property, we’ll be able to understand and predict our guests’ behavior which will give us the opportunities to serve them better," said Dr. Ayman Abdalazem, Head of Business Intelligence and Analytics, Nahdi Medical Company.
Selecting a cloud platform for data science has enabled us to quickly implement the solution while minimizing technical debt and accelerating the value we extract for Nahdi Medical Company.
“Organizations are quickly understanding the value of the cloud to analyze consumer behavior as they wrestle with the complexity of their continued growth," said Mike Webster, senior vice president, and general manager, Oracle Retail. "Oracle Retail Science Cloud Services allow retailers to leverage AI, machine learning and decision science to detect trends, learn from results and increase their accuracy, adding contextual data to paint a clearer picture on what motivates consumers. Retailers can focus on increasing value to their business through data science instead of building new solutions, algorithms, databases, and integrations. Moreover, with a cloud delivery model, Al Nahdi can focus on driving a more strategic business while leveraging the latest industry innovations delivered by Oracle.”
Oracle Retail at ORIF Dubai on Tuesday, October 16
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