Leveraging Data for Effective Ecommerce Strategies

– Probability is not absolute, so patterns in data are used to build confidence intervals.
– By knowing the probabilities of customer purchases, businesses can segment their lists and offer incentives to increase sales.
– Data collection and behavior modeling, combined with automation and a great customer journey, can significantly reduce resource allocation and increase overall profit.Segment your customer list based on their purchasing probabilities and offer greater incentives to encourage them to make a purchase.Probability is not absolute. So in the absence of probability, we look towards patterns in data to build confidence intervals. Customer X has a 34% chance of purchasing within the next 12 hours. They have a 75% chance of purchasing in the next 5 days. If you knew these probabilities, you could segment your list and offer greater incentives for the right people to cross the line and make a purchase. Now, if you applied the same methodology to repeat purchases based on data and statistical confidence intervals, you could predictively model when and what to send to people who have purchased before. With this data, you can automate communications via flows for the majority of your baseline correspondence with your customers. Then, you can look at data combinations between data points, revenue, products ordered, etc. to predictively model from the first signup. Additionally, you’ll layer on communications relevant to new product releases, broader larger sales, and company updates. But ultimately, with this data, you can effectively reduce the time and resources needed to operate your business. So, this highlights a larger shift that we see coming to ecommerce and services. Long-term service contracts and relationships are going extinct. Existing agency services are highly commoditized and the net value to be provided is dropping fast. With the data and strategy outlined in this post, you don’t need a long-term service provider. You need someone to come in, collect data, map out a strategy that is most likely to optimize these elements, then set it and forget it. Big picture, people. It’s about data collection and behavior modeling. It will never be 100% accurate, but if you combine automation with a great customer journey, you’ll get 85% of the way there with far less resource allocation. Less resource allocation means more overall profit. This should be the focus of most brands. We are not alone in trying to do this; there’s a handful of people working on figuring this out. Given that most people only purchase once and that cycles for a second purchase end at 150 days from the first purchase, it’s going to get interesting for a lot of companies. Knowing these things has a greater impact than attribution and everything else people are focusing on. #ecommerce #probability #datahttps://www.linkedin.com/in/jivanco

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