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Personalize or Perish Reinventing the digital customer experience is key to the survival of banks, insurers, telcos and large retailers.

Thought Leadership | Personalize or Perish | 1

Now more than ever, importance is being placed on precision in marketing — reaching the right user at the right moment with the right message. But this level of precision can’t be accomplished by humans alone. Machine learning technology is enabling smarter marketing by allowing marketers to drive customer intimacy at scale. Now, marketers can learn what customers want and react to their changing preferences in real time. Elizabeth Spaulding Partner and global head of digital - Bain & Company

Source: Think with Google Transforming Your Business in the Age of Assistance

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Thought Leadership | Personalize or Perish | 2

Is your company on the path to obsolescence? You may have millions of customers. You may dominate your space. Yours may be a hugely successful and established financial institution, insurance company, telco, travel company, or major retail brand. Still, your position is precarious. Why?

Customer loyalty is waning

New rules have descended upon brands big and small in the digital age. Customers have itchy trigger fingers and will leave without hesitation when they question the value your company provides or think of your products and services as a commodity.

It’s time to think beyond customer acquisition and explore new ways to maximize the value of your customers. To thrive going forward is to recognize every single customer as a unique person with unique needs and put programs in place to satisfy them.

Though this argument may sound gloomy, you’re only doomed if you ignore the warning signs and sit still in the new era of customer experience.

Yes, it’s now possible to personalize customer engagement at an individual level. Let’s examine how it’s done.

Copyright 2018, Perx Technologies Pte Ltd.

Thought Leadership | Personalize or Perish | 3

Do your loyalty programs score points with your customers? Banks, insurers, mobile operators, malls and retail chains tend to play a big part in people’s lives but do very little to engage with existing customers.



claim loyalty programs do not engender loyalty

What’s going on? A better question might be, “What isn’t?” The answer is relevance.

The rewards are unrewarding We all love deals. But deals don’t love us. Loyalty programs are downright dumb. They’re cold and generic. They turn a blind eye to incorporating the intelligence required to make “right place, right time” offers.

Source: Accenture Digital Research, 2016

Significant marketing budgets spent on new customer acquisition disappear into marketing wasteland; leaving existing customers unengaged and their revenue potential unexplored. And the loyalty industry has seen little or no real disruptive technologies. Though, according to Experian, more than 90 percent of companies employ some form of customer engagement or loyalty program, the programs — as they exist today — rarely generate the value they should.

77 Source: Accenture Strategy Global Consumer Pulse Survey, 2016


of all consumers admitted they now retract their loyalty more quickly than they did three years ago

I am not a golfer, but my bank still sent me a $200 golf voucher for a drive range Source: Anonymous facebook user

Given an outright lack of personalization, most people tune out entirely. The standard “buy more stuff, earn more rewards” approach results in complete apathy. Customers don’t burn the points they earn because the opportunity to redeem them are so often irrelevant, poorly timed, and invisible. Simply stated, buyers score points, while the brands that offer them don’t.


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of loyalty programs are based on standard card-based systems Source: Capgemini

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A smart loyalty management solution (LMS) changes the game

The probability of selling to an existing customer is 60 to 70%. The probability of selling to a new prospect is 5 to 20%.

You need to identify who your best customers are and keep them. The research makes this painfully clear:

Principle elements of such a solution include:

It costs 6 to 7 times more to acquire a new customer than retain an existing one.

in customer retention

rise in profits

A 5% increase in customer retention can increase profits by 25 to 95%. Source: Bain & Company

“Marketing managers will typically look at churn rate at a segment level — how many of our 18 to 25 year old customers left this month, for example,” writes Amy Gallo, contributing editor at the Harvard Business Review in The Value of Keeping the Right Customers. “But sophisticated, data-rich firms are also starting to look at the number at an individual customer level. In fact, the rise of big data is making it possible for firms to act more expediently and precisely on churn rates.” A perfect storm of omni-channel marketing and smart loyalty platforms promises to improve customer retention by resurrecting loyalty programs. Large consumer brands open to the idea of “SaaS-ification” can rapidly create and deploy refreshing digital customer experiences that actually earn loyalty and drive new revenue from existing customers.

Copyright 2018, Perx Technologies Pte Ltd.

Source: Marketing Metrics

Artificial intelligence Through simple API integration, marketing teams can harness the power of customer data residing in their CRM or Point Of Sale system and use AI to automatically build and dynamically serve personalized customer experiences. All future-focused companies will leverage data and AI to smartly engage with customers. Data Driven Campaigns Any campaign is as good as the sum of its idea and execution. The global customer engagement rate for digital marketing campaigns oscillates between 9 to 14%. But, AI enabled Smart Loyalty Campaigns have pushed that number between 60 and 90%.

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Mobility Appealing to consumers circa 2018 and beyond will call for employing a geo-aware, mobile-first approach to deliver offers when and where they’re most apt to be acted upon. Gamification The use of gamification techniques makes programs more fun, interactive, and engaging. Interact beyond the usual liking, sharing or watching a video creates more memorable and rewarding experiences.

Rich data feeds the effective loyalty programs of the future

An effective loyalty program is about your customers — not your business. Large B2C companies such as financial institutions, insurers, telcos, retailers among others must ‘wow’ their customers with new digital experiences on a perpetual basis to successfully combat churn. The efforts of most large consumer brands fall far short. What’s in their playbook today? • Bill reminders sent electronically or physically • Bill stuffers • Physical vouchers or coupons • Newsletters • Static Email or SMS blasts • And other spray and pray mechanics Unsurprisingly, engagement is low. Imagine the percentage of customers that get excited about any of the above.

Amazon raised the bar There’s little debate over which company pioneered the idea of gathering rich data about their customers. Amazon set the standard, but did so gradually. The truth is their efforts to collect data about individual buyers and apply it in their customer communications has been a process spanning two decades. Amazon is now a lifestyle brand. To stay relevant, most brands and service providers are trying to become one as well. Amazon knows what they need to address their customers’ wants and needs.

Bland and generic loyalty programs represent the present and past. The future relies on personalization. And personalization relies on capturing and applying rich data. Copyright 2018, Perx Technologies Pte Ltd.

Your brand must also pursue this path. Even if you have a 100-year legacy, your market position could easily be disrupted by one of the GAFA (Google, Amazon, Facebook, Apple) or BAT (Baidu, Alibaba Group, Tencent) companies.

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Disruption is inevitable Internet leaders with closed-loop networks can disrupt the status quo of traditional service providers almost instantly. Service providers play offense and get proactive immediately. Asia’s bound to be a pioneer of many disruptive innovations and demonstrate to the rest of the world what true customer centricity looks like. Case in point, in South Korea, the Internet giant Kakao — whose messenger app is used by 42-million people — announced plans to integrate its new banking service with its popular payment platform. Kakao Bank drew 2.16 million customers in the two weeks following its launch. Another example is Zhong An - China’s first property insurance company that sells all its products online along with handling claims. It has become one of the biggest online insurance sensations, all invested and forged by Tencent, Ping An, and Alibaba of China. Thus far, Zhong An has underwritten more than 1.6 billion insurance policies and paid out 369 million in claims. Facebook is now offering marketplace which will compete with traditional ecommerce and eBay alike and also disrupt 1st generation offline retailers.

What’s success going to look like? The future belongs to companies able to gather data on a customer-by-customer basis and use it to engage them when it matters most. The key to your success is knowing your customer far better than you do now. Perhaps the idea of personalizing interactions with millions strikes you as impossibly difficult. You may believe they require systems that are out of reach. They’re not. A smart generation has arrived, disrupted the industry for the first time in decades, and given birth to a transformative SaaSbased solution that marries the latest in omni-channel marketing, loyalty and AI. AI acts as the engine that enables your brand to push smart, targeted offers to customers who are more likely to redeem them. You build relationships with your customers by fostering the engagement and customer experience they value most. It all goes back to personalization. Armed with smarter marketing analytics, your brand can graduate from predictive to prescriptive.

The data driven approach to Driving Revenue through Customer Loyalty

+ Build a data driven Loyalty Program that Rewards customer


Increase Customer Engagements

and drive revenue

Leverage the power of your



customer data + +

Use Machine Learning algorithms to Accurately Target Customers by their

behavioural patterns

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Bring your Loyalty Program to Life with

Measure Performance in


gamified campaigns +

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Lets look at how some of the largest brands in the world leverage the Perx platform to drive revenue through customer retention.




Top Telco in Asia Rethinks Customer Loyalty in the Digital Era





The Telco’s customers onboard the sophisticated Perx Loyalty Platform. Perx A.I. intelligently transforms millions of customers into meaningful, targetable customer segments. Telco transforms Customer Loyalty program through Perx’s Smart campaigns with A.I. enabled Rewards and Audience Recommendations to boost revenue.

+ Customer big data

+ Smart Loyalty




A.I. enabled A.I. enabled Segmentation Rewards

Gamified Smart Campaigns


Double Digit Higher Customer Campaign ROI Retention

Note: Provisional Case study based on actual solution deployment



Thailand’s Largest Mall Operator Envisions Double Digit Rise in Footfall and Revenue



Customer A.I. enabled big data Segmentation

4000 MALLS


Perx A.I. turns millions of Mall customers into useful, marketable customer segments. Based on demography, location, the frequency of purchase among others, Perx’s A.I. enabled ‘Smart Campaigns’ drive revenue through meaningful customer engagements.


+ A.I. enabled Rewards


Gamified Smart Campaigns

Double Digit Campaign ROI

Note: Provisional Case study based on actual solution deployment

Copyright 2018, Perx Technologies Pte Ltd.

Thought Leadership | Personalize or Perish | 8



Tier-One Regional Bank drives S$24M in new revenue in a single campaign


Countries included in campaign

Scratch Cards Issued



Engagement Rate

Customer Spend

Web-based for quick time to market

Note: Sample creative only

Customer acquisition is important, but retention is vital Bringing in business — customer acquisition — has always been the name of the game for marketing and sales. It seems utterly attractive, highly rewarding, and of course the bare necessity. However,

New Customer

Existing Customer

Acquiring new customer is anywhere from 5 to 25 times more expensive than retaining an existing one.

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Depending on which study you believe, and what industry you’re in. Source: Harvard Business Review: The Value of Keeping the Right Customers

Major brands such as banks and insurance companies with hundreds of thousands of existing customers must understand: • Making marketing investments only in generating new customers is short-sided. It can be a recipe for disaster. • When you realize the importance of retaining customers you must also realize engagement is paramount.

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Relationships = Revenues You can’t assume the customers that purchase from you today will return to buy more or even renew your services. Instead, you need to engage them with relevant offers and build relationships. Winning customer loyalty — and realizing the revenues that result — is now about much more than delivering points or air-miles.

It’s about demonstrating your brand listens to their needs and connecting with them in a timely manner on their mobile devices. It’s urgent. Your customer engagement needs to constantly evolve. It’s time to not only meet the needs of your mobile customers today, but also to exceed them day in and out with smarter engagements. It’s time to take a personalized approach to winning customer loyalty.

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Copyright 2018, Perx Technologies Pte Ltd.

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