Tech allows customers to “build customer segments in real time”
McDonalds has bought Israeli personalisation and “decision logic” technology company Dynamic Yield for a reported $300 million-plus, saying the acquisition will enable it be “one of the first companies to integrate decision technology into the customer point of sale at a brick and mortar location.”
Tel Aviv and New York-based Dynamic Yield’s “decisioning engine” uses machine learning and predictive algorithms to build customer segments in real time that can “be used to take instant action via personalisation, recommendations, automatic optimisation, and one-to-one messaging.”
McDonald’s will use the technology to vary outdoor digital Drive Thru menu displays to show food based on time of day, weather, current restaurant traffic and trending menu items, it said, adding that the acquisition will allow it to instantly suggest additional items to a customer’s order based on their current selections.
“McDonald’s will also begin work to integrate the technology into all of its digital customer experience touchpoints, such as self-order kiosks and McDonald’s Global Mobile App” the company said in a release.
Dynamic Yield CEO Liad Agmon said in a company blog: “When Omri Mendellevich, our CTO, and I started Dynamic Yield seven years ago, the premise of what we were building was based on customer-centric organizations making individualized experiences and personalization a strategic priority. Our acquisition by McDonald’s, one of the most iconic and beloved brands of our time, is truly an endorsement of that vision as they have chosen Dynamic Yield to help power personalization across their 37,000 restaurants in 120+ markets around the world.”
Steve Easterbrook, President and Chief Executive Officer, McDonald’s Corporation., said: “With this acquisition, we’re expanding both our ability to increase the role technology and data will play in our future and the speed with which we’ll be able to implement our vision of creating more personalised experiences for our customers.”
Upon closing, McDonald’s will become sole owner and will continue to invest in Dynamic Yield’s core personalisation product, it said. Dynamic Yield will remain a stand-alone company and employees will continue to operate out of offices around the world. It will also continue to serve its current, and attract future, clients.