Randomised trial: pitting the Ibex AI against segment-based CRM
CRM processes are evolving and through the introduction of artificial intelligence, this innovative solution can increase Net Gaming Revenue (NGR) by up to 20% when compared to more traditional processes.
Additionally, Ibex.ai has a proven record of decreasing the bonus spend from operators, as well as assisting with numerous challenges faced by marketing and CRM teams.
This paper will explore the pain points CRM teams face every day and outline the solutions an AI-driven system can provide, with real-world examples.
Introduction
CRM has been around for a long time, and over the last decade there has been a significant evolution in the tools that marketing teams have access to, providing a new approach to the way companies decide to operate.
AI and Machine Learning have quickly made their way into this space, promising to accelerate further development and deliver a more personalised and intelligent marketing approach. It is all made possible with automation which dispels the need for segmentation. AI delivers bespoke, personalised messaging using channels that are unique to the customer.
For anyone in the competitive landscape of iGaming CRM, machine learning and AI are extremely exciting concepts with convincing advantages. However, education is required as to how it will provide these benefits to existing processes and teams. Furthermore, challenging the status-quo can cause uncertainty, particularly for management.
Where are we today and where are we heading
Presently, the CRM tools used in the iGaming industry offer some level of automation, allowing a user to pre- schedule marketing campaigns across multiple channels and define customer journeys to hit customers at set points in their life cycle.
This has allowed marketing teams to become more efficient and automate previously manual tasks, freeing up time for more strategic efforts. However, this still involves defining custom segments and customer journeys. As more segments are created, additional staff are required to manage and orchestrate the growing segments and journeys. This process quickly becomes time-consuming and laborious, as well as having diminishing returns without automated assistance from AI technology.
The next step in the evolution of CRM is to incorporate machine learning algorithms and AI to give customers a more personalised experience at every step of their life cycle and further increase the efficiency of the marketing team's efforts.
Some tools already incorporate AI, promising to add a higher degree of intelligence to marketing operations. But what exactly are the pain points being solved with AI tools?
CRM challenges & AI-driven Solutions
- Financial: Increasing bonus and retention costs - Calculating a full P&L for each combination of offers and players allows Ibex to only bonus players when it is profitable to do so. With over 40 models being used, Ibex calculates a P&L for each player which greatly reduces bonus costs.
- Strategic: Inflexible marketing strategies - With most CRM tools, changing strategy involves a significant amount of work, such as updating segments and customer journeys. Ibex can shift its retention strategy with the click of a button to drive the KPIs that are most important for every marketing lifecycle.
- Operational: Management of growing segments and journeys - Ibex automatically A/B tests new templates and campaigns and continuously optimises its recommendations.
Solutions in action
We set ourselves a challenge: can we address all of these problems and prove the benefits of using an AI-driven system, comparing against the best possible control group – a human-led marketing team using traditional CRM strategies with a well-known CRM provider.
Goal
The main goal of this challenge was to assess the impact of an AI-Driven system (Ibex) based on a completely randomised trial against a human led marketing team using traditional CRM strategies.
Setup
Before the start of this trial, we agreed on a fair setup with a randomised player split and the same retention options available to both parties.
Although the overall financial impacts could not be assessed until the two-month trial had concluded, the operational benefits of using an automated AI-driven system became immediately clear.
Operational
With the agreed setup Ibex had control of 50% of the player base with no manual execution work needed.
Ibex automatically generated recommendations and triggered marketing campaigns for these players daily and only at the exact right time for that player.
Conversely, the human-led CRM team (which consisted of around 5 members) manually executed campaigns at set intervals throughout the two-month trial period for the other 50% of players.
Financial
By the end of this test the financial impacts were clear. Ibex had an uplift on NGR across all three defined lifecycle segments of up to 20% compared to the human-led retention team. Also, throughout the test Ibex gave up to 17% less in bonuses while sending around 50% more campaigns. This proved that Ibex was efficiently bonusing players while also managing to increase player values across the board.
Summary
AI is by no means a replacement for humans or human-led business processes, however it can be leveraged to focus more on VIP Management, specific areas for improvement that were pointed out by Ibex reporting, strategy and overall commercial impact per brand and country.
Ibex is the leading iGaming partner for CRM automation to help upgrade CRM Teams to the next level.
Ready to see how Ibex can transform your retention strategy and boost your NGR?
