An AI-driven dynamic pricing model for RCS MediaGroup
Together with Go Reply, RCS MediaGroup has created a dynamic pricing model based on Vertex AI, with Gemini offering tailor-made suggestions to increase subscriber engagement, upselling opportunities and retention rates.
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THE CHALLENGE
Improve retention management and optimise offers to subscribers, personalising proposals based on behavioural data.
SCENARIO
Optimise the relationship with digital subscribers
RCS MediaGroup, one of the leading international multimedia publishing groups, manages a vast portfolio of digital subscriptions to its newspapers, including “Il Corriere della Sera”. Call centers have always been the reference point for subscribers' requests, such as cancellations and changes to subscriptions. However, operators had limited customer information, focusing mainly on subscription and payment data, without being able to offer customised solutions based on specific customer needs. This lack of detail made it difficult to optimise retention and offer offers that would increase value for each individual subscriber. To respond to these challenges, a smarter approach based on knowledge of the habits of its customers was needed.
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THE SOLUTION
An AI-based dynamic pricing model
Go Reply and RCS MediaGroup have collaborated to develop and implement a dynamic pricing model that uses artificial intelligence to personalise offers to digital subscribers, starting with “Il Corriere della Sera”. The solution, based on Google technologies, analyses historical user data, such as purchasing habits, browsing data, interactions with call centres and subscription characteristics. The system is able to generate offers tailored to each customer, referring them to the call centre operator through a dedicated dashboard, adjusting the price in real time based on the profile and preferences.
The offers generated are of three types: a standard offer, which refers to previous interactions with the call center, an offer aimed at maximising retention, and an offer that aims to optimise revenues, based on a predictive model that learns from past user behaviour. Each proposal is prepared based on the KPIs related to the customer, such as the probability of cancellation or the propensity to renew the subscription, thus improving the effectiveness of communication between operators and subscribers.
HOW DID WE DO IT
The data driven approach and Google's AI stack
To develop the AI-driven dynamic pricing model, the Go Reply team integrated Google technologies with a data-driven approach.
Analysis of historical data
Through Gemini, subscribers' past behaviors are examined, segmented based on preferences and interactions, with the data interrogated through BigQuery.
Creating the predictive model
A model based on Vertex AI selects the best offers for each subscriber in real time, based on historical data and current behavior.
Continuous optimization
The dynamic updating of the offers, with the data stored and read on Google Storage, allows continuous adaptation to user preferences and recent interactions.
Personalized suggestions
An agent based on the use of Gemini analyzes user behavior and offers targeted content (e.g. newsletters or columns), to increase engagement and strengthen the relationship with the product.
Monitoring and improvement
With Vertex AI, data is collected and analyzed to achieve dynamic pricing, constantly refining the model and proposals based on changes in subscriber behavior.
Increase in
retention
Thanks to the personalisation of offers, subscriber retention increased by 20%, improving long-term customer loyalty.
Increased
revenue
Dynamic pricing has helped to optimise revenues, making offers more in line with customer behavior available.
More personalized
proposals
Subscribers received proposals more suited to their needs, thanks to a system that adapts in real time to past preferences and behaviors.
RCS MediaGroup is one of the main multimedia publishing groups at an international level: with a stable and independent leadership, it has always operated in respect of the principles of freedom, fairness and pluralism. RCS is active in all publishing sectors, from newspapers to periodicals, from digital to books, from TV to new media, as well as being among the main operators in the advertising sales market and organizing iconic events and sporting formats of primary importance, such as the Giro d'Italia. With a turnover generated of more than 30% from foreign activities, the Group — listed on the Italian Stock Exchange — is significantly present, especially in Italy and Spain, with leading brands in daily and periodic publishing. In fact, the RCS Group publishes the newspapers Corriere della Sera, La Gazzetta dello Sport, El Mundo, Marca and Expansion, and the periodicals Oggi, Amica, Io Donna, Living, Style Magazine, Dove, Abitare, Sette, Sport Week, Telva, Yo Dona, Papel, Marca Motor, Fuera de Serie, Metropoli and Actualidad Economica.
Go Reply, a Reply group company, is the trusted partner for embracing digital transformation with the power of Google Cloud. Our specialization translates into a wide range of cutting-edge services: cloud transformation - we guide companies in the digital age, successfully migrating workloads to the cloud; modernization of applications - we optimize existing applications for better performance and greater agility; cloud data & AI - we exploit the power of data and artificial intelligence to generate strategic insights; Machine Learning and Generative AI - we bring AI to the heart of business processes to improve efficiency and stimulate innovation. As Google Cloud's official Managed Service Provider, we have partnered with leading companies in various sectors. This allows us to offer comprehensive and proactive support to accelerate digital transformation and business success.