In eCommerce, conversion rate optimization is the most important things to consider which can be promoted through predictive analytics. What is the significance of it? It will help you to know in advance what products your customers are interested in and they are most likely to buy.
Will, it is not great to know such things in advance? Certainly! This will help you to:
- Maximize your business sales and profits
- Determine the best possible and highest price of your product that your customer will pay for
- Optimize customer service and
- Resolve customer issues most proactively before they go out of your hands.
In short, this kind of insight in advance will enable you to transform your dream into reality, offer better solutions and make even more money through your eCommerce labors.
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Increase customer engagement
Predictive analytics will make your website perform even better and will offer the best solutions for any kind of issues-particularly in these specific areas mentioned above along with several others.
Improve the level of customer engagement:
It is a fact that different customers will engage with a site in different ways. It is predictive analytics that will help you to look at and analyze the different variables. This, in turn, will help you to generate the desired level of engagement from your customers. Such engagement can be in different varied forms such as:
- Signing up for a newsletter
- Clicking on any promotional offer and
- Getting in touch with you to know more about your product or service or any other form of engagement.
You can create and use different models to monitor and understand the behavior of your customers. Some of the useful models are:
- Lattice and others.
All these models can be tuned as and when your business evolves. These models will also help you to develop better solutions that will further help you to qualify the leads even better to make higher sales both online and off.
Most of the investors use such predictive analytics tools to find and understand better market opportunity. You will be able to know and analyze all publicly available information on a particular lead, matching it against the qualities of your pre-existing customer base and helps your sales team to convert the leads into your business prospects.
Hyper individualized experiences
In fact, the combination of predictive analytics with customer engagement and using the predictive analytics tools will help you to take digital disruption to the extreme that is most logical and necessary. This will ensure that you provide your customers with hyper-individualized experiences.
According to a New York Times article, these predictive tools can double the results from even the least number of leads.
- These tools will help you to launch better promotions for your business.
- You can create these more strategically so that these are more specific and target your customers more precisely.
As you may know that in the world of eCommerce where there are lots of such sites dealing with a wide variety of products and services competition is fierce. In order to beat this competition, you will need to promote your business. Promotions are in fact elementary and an integral part of business these days especially for a retail business to succeed. However, it is not an easy task to get your promotions right.
According to this study by Oracle, it is found that:
- 98% of all the fast-growing eCommerce merchants believe that segmentation is a very important aspect of their business.
- They also believe targeting the specific customers is also equally important for any online merchandising strategy to be fruitful.
- More than 50% of the online business merchants are also found to be unsatisfied with the tools that they have and use for their business promotion methods.
However, all these issues are resolved by the predictive analytic tools as it correlates data available from multiple sources. This helps the business owners to determine what their target customers like and accordingly design a personalized promotional offer. When such promotions work better for any given customer or a particular segment, the level of engagements as well as the rate of success for that particular promotion is automatically enhanced.
- Ecommerce business can now benefit a lot with the help of predictive analytics as it will help them to create and deploy more effective solutions from SAP.
- This will result in targeting the registered users of their site in a much better and more result-driven way.
- When the browsing behavior of the customers are combined within different product categories and targeted emails are sent to each customer segment, there will be an automatic increase in online sales to the tune of 8 to 12 percent.
If you wish you can take a cue from several sites such as https://siteimprove.com/ and others to know some of the unique sales models. Using these models you can ask your users to take a survey. You can later use the predictive analytics to match the results with the type of product that the customers might like.
The data points used on your customers will be the most significant element to know a lot of things about your customers that will ensure that you have a higher level of customer engagement. Some of these useful things that you will come to know are:
- Their usage patterns
- Their product preferences
- Their location data and much more.
All these will help you to deliver more effective solutions, better promotions and more relevant products to your customers, all in the real-time. What is more significant is that fact that this will also help you in reducing the overall churn dramatically of your customers.
However, when you use these predictive analytics tools, it is important for you to know a couple of things. It is very important for you to realize that predictive analytics tools are simply not any usual plug and play solution. Therefore, you will have to do much more than just simply dumping your customer data in it and expect that large revenues will spill out.