MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode: Using Data To Drive Personalization
Release Date: December 7, 2024
Host/Author: I Hear Everything
Guest: Sue Lee Rivera, Vice President of Marketing at Rakuten Rewards
Guest Host: John Cintross, President of Mutinex

Introduction and Guest Background

In the December 7, 2024 episode of the MarTech Podcast ™, hosted by I Hear Everything, listeners are treated to an insightful conversation on leveraging data for personalized marketing strategies. This episode is uniquely guest-hosted by John Cintross, the President of Mutinex, who engages with Sue Lee Rivera, the Vice President of Marketing at Rakuten Rewards. Sue brings a wealth of experience from Rakuten Rewards, a platform renowned for its cashback deals and shopping rewards, boasting 17 million members in the US who have earned over $3.7 billion in cash back.

Personalization Strategy at Rakuten

The discussion kicks off with a deep dive into Rakuten's approach to personalization in marketing. Sue Lee Rivera emphasizes the delicate balance between appealing to a broad audience and delivering personalized experiences.

"With Rakuten, we are a marketplace, which means the breadth that we have in terms of brands really hits, as you called it, the masses. Right. There's something for everybody," [03:38] Sue Lee Rivera explains.

Rakuten achieves this by using comprehensive data analysis to understand customer preferences and shopping behaviors. Sue details how Rakuten tailors its offerings based on seasonal shopping trends, such as back-to-school versus holiday gifting, ensuring that customers receive relevant deals at the right time.

"We rely on the development as well as the use of many different proprietary models within our data warehouse," [03:38] she adds, highlighting the company's robust marketing analytics and dynamic data science teams. These teams create and refine preference and churn models, ensuring that Rakuten can maintain a personalized connection with each member by continuously adjusting recommendations based on user engagement and feedback.

Balancing Mass Appeal with Personal Relevance

John Cintross and Sue Lee Rivera discuss the challenges marketers face in balancing mass appeal with personalized relevance. Sue underscores the importance of not over-optimizing to the point where discovery is stifled:

"It's finding the right balance of where is it okay to have a little bit more discovery and then where is the consumer asking for more of that one to one connection," [07:51] Sue explains.

This balance ensures that while users see offers tailored to their preferences, they also have the opportunity to discover new merchants and deals that align with their interests but may not have been immediately apparent.

AI Integration in Marketing

A significant portion of the conversation centers on the role of Artificial Intelligence (AI) in enhancing Rakuten's marketing efforts. Sue outlines two primary areas where AI is making an impact:

1. Productivity and Efficiency: AI tools help Rakuten execute marketing strategies faster and more effectively.

2. Performance Optimization: AI-driven models enhance the efficiency of marketing investments by optimizing where and how marketing dollars are spent.

"We use AI as a way to improve even our marketing efficiency and things like email. So the signals that based on what subject lines or what copy, all of those different factors feed back into the model that we can then use," [11:33] Sue elaborates.

Rakuten employs AI in their recommendation engines, utilizing proprietary models to dynamically create email content and image selections based on user interactions and preferences. This automation goes beyond traditional A/B testing, allowing for real-time adjustments and more personalized user experiences.

Measuring the Effectiveness of Personalization

When asked about quantifying the success of their personalization efforts, Sue shares concrete examples of improved marketing outcomes:

"In certain areas, we've had largely speaking any place that we've done more personalized offers in terms of higher cash back rates based on preferences, we tend to see an increase," [12:18] she states.

She refers to case studies where personalized offers led to significant increases in engagement and conversions. For instance, transitioning from generic weekend promotions to dynamic platforms that highlight merchants aligned with individual preferences resulted in double-digit percentage improvements in both user engagement and actual purchases.

"We've seen a huge increase in terms of not only engagement but converted trips," [12:35] Sue emphasizes, indicating the tangible benefits of their data-driven personalization strategies.

Transformation and Future Initiatives

The conversation shifts to Rakuten's ongoing transformation journey, emphasizing that transformation is a continuous process rather than a one-time initiative. Sue discusses the importance of maintaining and updating the Martech stack and data infrastructure to keep pace with evolving marketing landscapes.

"Transformation has become something continual in an environment within marketing in all different sectors," [14:12] Sue remarks.

A notable recent initiative is the launch of Rakuten Plus, a new subscription model designed to enhance loyalty and offer consistent cashback benefits across luxury retailers. This program exemplifies Rakuten's commitment to expanding its offerings and adapting to changing consumer needs.

"Rakuten Plus is around luxury shopping at 35 plus retailers where you will have an always on 10% cash back," [16:08] Sue shares, highlighting how this initiative supports members in accessing premium savings opportunities.

Conclusion

The episode wraps up with Sue Lee Rivera highlighting Rakuten's dedication to leveraging data and AI to drive personalized marketing while maintaining a broad appeal. Her insights provide listeners with a comprehensive understanding of how data-driven strategies can enhance customer experiences and business growth.

"Transformation is a continued effort. Removing that word. I think there's also foundational change that actually we went through in the past several years," [14:12] Sue concludes, reinforcing the importance of continual adaptation and innovation in marketing.

Listeners are encouraged to connect with Sue and John through provided links and to stay tuned for future episodes that continue to explore the intersection of marketing and technology.

Notable Quotes

• John Cintross: "With Rakuten, we are a marketplace, which means the breadth that we have in terms of brands really hits the masses. There's something for everybody." [03:38]

• Sue Lee Rivera: "It's finding the right balance of where is it okay to have a little bit more discovery and then where is the consumer asking for more of that one to one connection." [07:51]

• Sue Lee Rivera: "We use AI as a way to improve even our marketing efficiency and things like email. So the signals that based on what subject lines or what copy, all of those different factors feed back into the model that we can then use." [11:33]

• Sue Lee Rivera: "We've seen a huge increase in terms of not only engagement but converted trips." [12:35]

• Sue Lee Rivera: "Transformation has become something continual in an environment within marketing in all different sectors." [14:12]

• Sue Lee Rivera: "Rakuten Plus is around luxury shopping at 35 plus retailers where you will have an always on 10% cash back." [16:08]

Key Takeaways

1. Data-Driven Personalization: Rakuten leverages comprehensive data models to deliver personalized shopping experiences while maintaining broad market appeal.

2. AI Implementation: AI enhances both the efficiency of marketing operations and the effectiveness of marketing investments, particularly in areas like email personalization and recommendation engines.

3. Continuous Transformation: Rakuten views transformation as an ongoing process, continually updating its Martech stack and data infrastructure to adapt to evolving market demands.

4. Measurable Success: Personalized marketing efforts have led to significant increases in user engagement and conversion rates, demonstrating the effectiveness of Rakuten's strategies.

5. Future Initiatives: Launching Rakuten Plus signifies Rakuten's commitment to expanding its offerings and enhancing member loyalty through innovative subscription models.

For more detailed insights and episode summaries, visit martechpod.com. Stay connected with the MarTech Podcast on LinkedIn, Twitter, Instagram, and Facebook at @martechpod, or reach out directly to the host, Benjamin Shapiro (@benjshap).