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McDonald’s plan to put “supersized” data to action | Perfect Price

McDonald’s recent acquisition of the Tel Aviv-based AI startup, Dynamic Yield, is an exciting move, demonstrating that the 63-year old fast-food chain is looking for ways to stay competitive. Like many large enterprises, McDonald’s has long recognized the value in data, collecting large amounts of data on everything from tractions to customer behavior. However, data is only as valuable as what you can do with it. The acquisition of this new machine learning and AI technology demonstrates the company’s intent to put customer data to work.

This “decision logic” or decision automation technology is intended to help McDonald’s predict consumer preferences and provide real-time, personalized recommendations at the drive-thru. Using extended available data on weather, time of day, local traffic, nearby events, and historical sales data, McDonald’s will predictively suggest add-ons based on someone’s order choices. For example, a customer who orders a happy meal might be presented with a suggested beverage or dessert based on what others have ordered, Wired describes. This will help McDonald’s to improve the speed at the drive-through during busy times by suggesting meals that are simpler to cook, increasing efficiency, customer satisfaction, and consumer purchases.

Though personalization is becoming more and more popular in e-commerce, this real-world application at physical restaurant locations represents a big step in catering to unique customer preferences. This is likely just the first step in the impact that machine learning and AI will have on McDonald’s business. From dynamically-changing menus based on consumer behavior, to predictive analysis leading to optimal order strategy higher up the supply chain, the impact that AI could have for McDonald’s is wide-ranging.

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McDonald’s plan to put “supersized” data to action.

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