The macroeconomic climate is one of increasing uncertainty, with expectations of a global slowdown both on the horizon and top of mind for executives. In this apprehensive economic environment, Gartner notes that business are facing a triple squeeze that includes:
- Stubbornly high inflation
- A talent shortage that’s driving up labor costs
- Lingering global supply chain constraints from the pandemic
So what’s a business leader to do in the face of all these headwinds?
Persado’s VP of Vertical Strategy, Alex Olesen, and Brianna O’Hara, Director of Product, provide insights in the webinar, 4 Executive Challenges Motivation AI Can Help Solve. During the hour-long discussion, the two reveal how business leaders can leverage Persado Motivation AI to address issues that are keeping executive up at night, such as:
- Revenue growth
- Cost management
- Talent constraints
- Customer loyalty
In this article, we take a deep dive into the first challenge—revenue growth in a slow economy—and reveal how to leverage Motivation AI to achieve it.
Levers to drive revenue growth in a slow economy
With macroeconomic conditions on unsure footing, consumers may be tempted to tighten their purse strings and pare back, or even avoid purchases. Business leaders must find ways to grow revenue at a time when consumers may be second guessing discretionary spending.
A survey conducted by Ernst and Young shows that 27% of executives believe that developing innovative delivery systems and channels for interacting with customers is a primary lever of growth over the next five years. Business leaders realize boosting customer engagement is essential to driving growth, and they may need to undertake novel means to achieve it.
Another growth lever: Figuring out how to increase the sale of products and services to existing customer segments. That’s because engaged and loyal customers will have a 1–25 percent higher lifetime value. These customers are more organically disposed to spending money with a brand. So marketers and executives must understand what motivates a customer to engage with brands for the first time, and also what keeps them loyal and engaged in the long run.
A tale of two economies: Speaking to customers with different economic realities
The United States is seeing a tale of two economies where higher earners react emotionally in a different way than middle/lower income households to economic conditions. After all, inflation most negatively impacts those who are less well off, as they must spend more money on necessities, like gas and groceries, leaving less money for discretionary items. So for middle/lower income households, inflation is having a particularly negative effect on their economic reality.
As such, businesses must communicate in an effective and sensitive way to the right audience considering the economic climate around them. Tailoring the words, punctuation, emoticons, and even colors to trigger the right emotions, can help in generating positive engagement.
“While the changes might appear to be nominal, they are, in fact, powerful in communicating and capturing what motivates each individual consumer, so they feel like they’re being marketed to as an audience of one,” said Olesen.
Retailers see revenue growth in a uncertain economy with Persado
With Persado, businesses can speak with each individual like they know them personally. The platform has delivered more than 100 million messages, and achieved an average lift of 41 percent in conversions across customer engagement channels.
Over an eight-month time frame, Persado worked with a Fortune 500 retailer who wanted to optimize the language of their cart abandonment email. They used Persado Motivation AI to optimize the subject line, headline, sub header, CTA text and the formatting, then ran an experiment with 16 variations. The winning variant drove 15 percent more engagement, 26 percent more orders, and $404,000 in revenue when extrapolated over a 12-month period. That’s the power of Motivation AI for revenue growth!
Persado also worked with a luxury retailer over a six-month period to also optimize the language of their browse abandonment email. Again, Persado ran experiments altering the subject line, headline, sub header, text, CTA, formatting, capitalization, and even the use of emojis. The winning variation drove 16 percent more opens, 38 percent more engagement, 29 percent more orders, and 18 percent more revenue. Extrapolating over a 12-month period, the luxury retailers experienced $169,000 in incremental revenue growth with Motivation AI.
“On average, customers that work with Persado and are able to deploy Motivation AI to successfully communicate with their clients can recuperate about $40 million of lost revenue or lost conversions for every $100 million of marketing attributed revenue,” Olesen said.
Persado Motivation AI helps drive revenue growth
The economy may be unpredictable, but brands do have control over their marketing messaging. Brands in finance, retail, telecommunications, and travel trust Persado’s AI capabilities to increase engagement, build brand equity, and ultimately generate tremendous value for their business. Persado’s top 30 clients have delivered a more authentic and differentiated brand experience, while generating more than $1.5 billion in collective incremental revenue.
To understand more about how Motivation AI can boost revenue, and to learn about its impact on cost management, talent constraints, and customer loyalty, check out the full webinar: 4 Executive Challenges Motivation AI Can Help Solve.