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Marketers send out billions of offers each year to engage customers. But succes depends on creating the optimal offer for each customer, a challenge that’s been compounded by changes in customer behaviors during the pandemic. A recent Forrester study found that only 33% of customers believe offers they received from brands were relevant.
Marketing tech startup Formation claims it has a solution in Dynamic Offer Optimization, a platform that enables travel, retail, and quick service restaurants to create, deploy, and optimize sales offers. Formation claims Dynamic Offer Optimization can increase customer engagement by helping businesses respond more quickly to market forces and changing customer needs.
Under the hood
Dynamic Offer Optimization consists of two components. There’s Offer Builder, which creates and optimizes individual offers, and Offer Engine, which drives real-time delivery, tracking, fulfillment, and measurement of each offer. Offer Builder ingests segments and customer journey data from marketing tech stacks and builds millions of unique offer variants. Offer Engine makes the offers available via APIs to channels and tracks, fulfills, and measures each offer’s performance.
Formation applies machine learning to optimize each customer’s offer for subsequent deployments. The company says this process can take less than an hour and that customers — including Starbucks and United Airlines — have used it to deliver over 2 billion unique offers during the pandemic.
“We’re really excited to take all the knowledge and experience from working with some of the world’s biggest brands for the past five years and make that breakthrough technology available to all companies,” Formation cofounder and CEO Christian Selchau-Hansen said in a press release. “Automating the creation, deployment, and optimization of billions of offers not only drives material impact to the business but enables brands and marketers to also focus on all the other critical mindset and organizational shifts needed for comprehensive digital transformation.”
New community
The release of Dynamic Offer Optimization coincides with the launch of Loyalty Innovators. As Selchau-Hansen explains, Loyalty Innovators’ mission is to connect and support digital, marketing, and loyalty leaders in their journeys to adapt their company’s products to the changing consumer landscape.
“We are excited to offer marketers unique technology to help them engage customers with relevant and valuable offers with tremendous speed and agility by better leveraging first-party data through automation and machine learning,” Selchau-Hansen continued. “Our mission is to arm digital and marketing leaders with best-in-class optimization tech, as well as to support them through their digital transformation journey with the Loyalty Innovators community.”
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