Predictive Analytics & The Future of E-Commerce

Wouldn’t you love to predict your customers behavior, if you were a business owner? With Predictive Analytics, this is now feasible. It is becoming the hottest way to market proactively to customers on the internet. Businesses have been using historic data to build predictive models which provide information on long term consumer behavior. With these insights, a number of questions relating to best shopping experiences, personalized marketing messages, purchasing patterns and consumer shopping cycles are being answered. With the following example the power of predictive analytics can be further simplified. If an online retailer notices customers buying diapers of a particular brand and returning to refill their stock, then he can use predictive analytics to predict which customer will return, when they will return, how often they may return and what other items are picked up. This data will empower the company to reach out directly to customers and up-sell other related items. This improves the number of conversions as well as average order values and also encourages targeted promotions and personalized messaging. Slightly more complex predictive analysis would bring light on price elasticity, trend development, seasonal trends and performance of multiple channels.
Predictive analytics also give a deeper look into where the customer will interact with the brand, and what will make them respond to your calls to action. But the truth is that it is hard for businesses to keep track of consumer behavior across all the channels used, as there is more complex bits of information to organize and sort out. A modern data management platform should help you unify your analytics from multiple channels, monitor cost and sales data and take actions based on performance thresholds. Other than using the right software, predictive analytics makes it imperative that you build a great team with technical personnel to crunch the numbers, develop models and marketing personnel to provide insight into a customer’s intent and actions before developing them into marketing initiatives. Implementing these analytic methods now will set you up for consumer driven success in the future and who wouldn’t want that?

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