How Machine Learning Allows Retailers to Harness Consumer Data for Targeted Advertising // Derrick Fung — Drop

Quotes

• “Back then, redemption was at a point of sale. The data was collected through a point of sale and the main way to redeem was calling through a call center to redeem your reward and it will be mailed to you.” -Derrick“There’s a couple of themes and trends that helped us get where we are today. One is the interconnectivity of the world, the ability to buy online and then the mobile phone.” -Derrick“Another big driver of loyalty today is the fact that a lot of the brands that we know such as Airbnb and Uber, where loyalty is built into the actual experience of the product.” -Derrick“There is a dynamic shift, not only in the way that we pass data and integrate with brands but also of a direct connection with the new wave brand.” -Ben“In a world where consumers, ultimately have a lot of choices, loyalty is that user experience.” -Derrick“I think a lot of companies work with outside parties to have a bit of understanding of what’s happening outside of their store to learn how they can better the experience in-store and online.” -Derrick“I think that consumers are smart and they are looking for something in return and while data has been around for a while, the big change now is the cleanliness of the data and the utility of banking technology itself.” -Derrick“For instance, Nordstrom and Target have private label cards, the banks thathad issued cards as well are now open to APIs and platforms plugging into the bank to pull the data so the actual accuracy of the data has drastically improved.” -Derrick “Another big change is the ability to look back. A lot of companies now can look back and assess what the consumer has been spending habits and use that information to better target them with offers and rewards and prove incremental sales.” -Derrick“Labeling, cleansing, and mapping are still a challenge today especially the bigbanks, they have too much data.” -Derrick“Consumers often have too many cards in their wallets. The average consumer household is a member of 29 loyalty programs and it will be companies like Drop who will consolidate this data into one centralized platform to be able to truly use machine learning in a customized way.” -Derrick