Ovidius University Annals: Economic Sciences Series (Jan 2021)
A Methodological Approach for the Journey through Real-Time Marketing: From Customer Journey Analytics to Personalization Engines
Abstract
Many companies rely in practice on personalization engines and value co-creation in order to boost the efficacy of their one-to-one customer relationships. Real-time marketing (RTM) can increase the efficacy of marketing activities by taking advantage of technology, big data analysis, social media and constant connectivity. RTM fosters consumer engagement in value co-creation and in the personalization of products, offers and customer service. This paper suggests a methodology for implementing RTM by considering the main characteristics of customization strategies: novelty, serendipity and diversity. Based on the seven rules for RTM implementation, we propose and discuss the process of incorporating big data and customization strategies into a personalization engine driven by machine learning and big data analytics. We include in the personalization engine value co-creation drivers based on marketing drive value, customer lifetime value and strength and intensity of brand associations. The proposed process-based framework for RTM implementation integrates algorithms related to customer profile to calculate their future purchase probability, thus being a useful managerial tool for segmenting and targeting consumers in real-time. By adapting marketing communication patterns to these permanently ‘evolving’ segments, value co-creation and consumer satisfaction increase, while the AI algorithms also improve.
