HSAD used AI to analyze CRM data — including customers' purchase histories and behavioral data — to identify the characteristics of loyal customers and apply those findings to ad targeting. [Courtesy of HSAD]
HSAD used AI to analyze CRM data — including customers' purchase histories and behavioral data — to identify the characteristics of loyal customers and apply those findings to ad targeting. [Courtesy of HSAD]

HSAD said Tuesday that using AI to analyze customer relationship management data — including purchase histories and buying cycles — contributes to acquiring potential customers and raising average transaction values.

CRM data refers to customer information a brand accumulates over time, covering purchase histories, buying cycles, coupon usage, wishlist activity and cart abandonment. It has traditionally been used mainly for retargeting — re-exposing existing customers to ads.

HSAD took a different approach, using AI to analyze customer behavioral data, identify the traits of high-value customers and then serve ads to new potential customers with similar characteristics.

When the method was applied to marketing for a health supplement brand over the past three months, the conversion rate — the share of ad viewers who went on to make a purchase — among lookalike target customers was 2.1 times higher than that of general targeted ads. The average purchase value per customer was also about 18 percent higher than the general target.

Results were even more pronounced in certain customer segments. Lookalike targets built from the behavioral profiles of existing customers who had not made a purchase for a set period showed a conversion rate roughly seven times higher than general targeting.

HSAD designed a strategy for how to analyze a brand's CRM data and which customer segments to use for identifying ad targets, then carried out the project with Markettab, an AI-based CRM marketing solutions company.

Building on these results, HSAD plans to expand its CRM- and AI-driven ad operations to a wider range of industries.

"This project is an example of AI advancing to the point of analyzing actual customer behavior and determining which customer segments should serve as the benchmark for ad targeting," said Yun Jeong-min, head of HSAD's IX (Integrated Experience) Center. "We will continue developing marketing approaches that connect AI and data to go beyond immediate ad performance and enhance long-term customer value."


joze@heraldcorp.com