Loyalty

Wattle Labs has created a "Large Behaviour Model" (LBM) of the human population. The LBM, an analogue of LLM's, which seeks to understand human behaviour, rather than language.

This video explains how our technology can can enhance loyalty.

#datascience #AI #digitalmarketing #ecommerce #behaviourchange #BehaviouralScience #psychometrics #nudging #boosts

https://www.youtube.com/watch?v=311eoLO4JQc

Transcript

Hello Australian loyalty programs, my name is Aaron and this is Wattle Labs. Loyalty programs are facing significant issues at the moment, and we've highlighted five of them here.

Point one is market saturation. The market is completely saturated with loyalty programs. There's no more free growth in the market, and if nothing else changes, revenue from this point on is capped. Point two is increased competition, which is a direct consequence of point one. The competition is coming from other loyalty programs and from other digitally enabled organisations all vying for the attention of Australians. Point three is diversity of customer. Australia has changed significantly in the last 30 years and we now have a very diverse country — 30% of Australians were not born here, which makes personalisation and messaging very difficult. We can't just rest on our laurels and say "we still call Australia home" with pictures of an Akubra. That doesn't represent Australia anymore, and I think all programs and all companies have to respond to that change. Point four is the increased scrutiny around data privacy and security. Greater data privacy makes partnerships and co-marketing extremely difficult. No one is willing to share PII data, no one is willing to share sales data, and it limits the effectiveness of the programs themselves — including the types of rewards that can be offered and the agility with which different rewards can be rolled out to customers. Point five is diversity of rewards. As loyalty programs have matured, they've incorporated more and more rewards, which really fragments the customer base within the program. Rewards customers looking to redeem business class flights are fundamentally different to customers who want gift cards for their grandkids or appliances to reduce the cost of family life.

Wattle Labs can address all five of these issues, and I'll just get into it and show you how.

I'll start with diversity of rewards. There are fundamental differences between customers, and I'll give a simple example of how we can address the gap between business class flight redeemers and gift card or appliance redeemers. Instead of sending out one campaign for business class flights to everyone, or pushing notifications for gift cards to the entire base, we can be a lot smarter than that. Wattle Labs can psychologically, behaviourally, socio-economically, and demographically profile all of your customers and essentially rank everyone by income. That's just a very simple version of what we can do. We can then profile all your rewards — psychologically profiling the behaviour of redeeming a reward — and then match your customers to the rewards that are right for them.

This has several effects. It's going to improve redemption rates. It's going to get better rewards, or the right type of rewards, in front of the right customers. It goes some way toward personalising the program so that everyone feels like they're getting offers for the kinds of rewards they actually want, rather than offers for things that just aren't aligned with who they are. It makes the program feel genuinely personal, with better recommendations — and that's a good thing. We can help you make sense of the huge diversity of rewards you've got and match them to customers much more successfully.

We can also help you do partnerships again. Data privacy concerns have made this very difficult, but Wattle Labs has technology to enable, for example, Telstra to co-market to the Everyday Rewards program or to Qantas Loyalty without sharing or exposing any sales data or PII data. That's because we take a fundamentally different approach.

We take customer data, profile it to create a persona for each and every rewards customer, and then we take the partner's sales data — whether that's Telstra's data, a new pop-up store, concert tickets, a new band, anything — and profile that to create a persona as well. The important thing about our behavioural and psychological personas is that they are mathematical constructs. They contain no PII data and no sales data. I could literally take the personas of all the customers in Everyday Rewards, put them on a USB stick, walk down the street, and if someone stole it, there'd be nothing they could do with it. It has no intrinsic real-world value — it's a mathematical construct.

So what we do is create the customer personas at the loyalty program, process the sales data, ticket data, postgraduate degree data — whatever it might be — and walk it straight into our systems. Now we have customer personas and product personas, and our matching and recommendation engine feeds that into your marketing system. You execute your campaign as normal.

The really exciting thing about this technology is that we can market products to people based on their latent psychological and behavioural attributes. We can market to your customers the things they dream about but have never actually clicked a button to express interest in. It gets into the critical factors driving the behaviour of purchasing a product, and then identifies within your customer base the people who exhibit those same latent properties. So effectively, people who don't yet know they want to go to a John Farnham concert — we can tap into that and match them with the ticket offer. In this way, we can solve your data privacy issues when it comes to partnerships and co-marketing in a limited but meaningful sense. We don't expose any data, we personalise the program so people feel like they're getting offers for things they actually want, and you can rapidly offer new things without getting all the data scientists in a room and using defence-grade security data centres to do all the matching. We don't do any of that — we simply match people's latent behavioural properties to products and services.

This is going to help set you apart in the market and address the increased competition problem. Because you're getting better offers and newer offers to customers more quickly and more accurately, it may help break through the capped revenue ceiling. And it may even help you attract customers away from other loyalty programs — which is always a good thing.

Finally, personalisation and diversity of customer. The old days of one message to everyone — "we still call Australia home" — just don't cut the mustard anymore. What our technology can do is take the message you want to send — whether it's a marketing message, an ad, a text message, a push notification, or a product description — and because we've psychologically profiled all of your customers across 60 different dimensions, we take every single persona — 10 million, 12 million, however many — and personalise that message to the individual customer it's being sent to.

So every single message gets personalised to every single customer. This means we can handle culturally diverse and sensitive considerations — Asian Australians, Middle Eastern Australians, country Australians, city Australians — as well as dimensions like income, education, profession, and the dreams and desires of the actual target person. We take that one conceptual message or ad and tailor it to the latent behavioural drivers of each and every customer you have. The effect of this is that your one-size-fits-all program effectively looks like 10 million individual programs — one tailored to each individual rewards customer.

So we can handle diversity of customer in spades. Anyway, that's all I wanted to say. My name's Aaron, thanks for listening, and have a good day. Thank you. Bye.