Initially, limited pilots of artificial intelligence (AI)-based marketing campaigns, fast food company (QSR) Yum Brands Customer engagement is reported to have increased by double digits compared to traditional digital marketing campaigns.
“I think this is just the beginning of what he could do,” Joe Parkchief digital and technology officer at Yum Brands, told the Wall Street Journal (WSJ) in a statement. interview published Friday (November 15).
Yum Brands, which owns Taco Bell, Pizza Hut, KFC And Habit Burger & Grillhas started using AI to personalize its marketing campaigns, Park said. For example, when delivering emails, the technology personalizes the time of day, day of the week, subject line and content for each recipient.
“Through AI-based marketing, instead of sending the same offer to everyone as a one-size-fits-all solution, we can engage each of them with the relevant offers at the right time,” Park said in the ‘interview.
The company also uses AI to select pre-written messages, decide when and how to deliver them, and provide marketers with campaign results in real time, Park said.
In the future, Yum Brands plans to increase the use of AI in its mobile apps and drive-thrus. For example, the technology could personalize the menu board the customer sees, based on their purchasing history, Park said.
The company is pursuing a two-phase approach digital strategy which includes AI, PYMNTS reported on November 5. CFO of Yum Brands Chris Turner said during an earnings conference call that the first phase focuses on acquiring, building and scaling proprietary platforms to take control of their data, streamline innovation and leverage leverage savings through scale, while the second phase aims to maximize the value of these platforms using AI and the company’s vast data assets.
“We believe we are still just scratching the surface of the full value of our digital capabilities,” Turner said on the call.
Generative AI is poised to revolutionize retail by deepening customer engagement, personalizing purchases and optimizing supply chains, according to PYMNTS Intelligence and AI ID collaboration, “What generative AI has in store for the retail industry.”
The report also reveals that 70% of consumers and executives said retail marketing and sales are areas likely to see further AI disruption.
