Have you ever wondered that you can know what your customers are searching on website? Or if your customer is a fitness freak, a passionate reader or a tech enthusiast? Or you can send the recommendation directly to customers’ email for a product that they were searching for a long time? Well, this is possible through Predictive Analytics.
Predictive Analytics is a part of advanced analytics that is used to predict future trends, behavior and activities on the basis of historical and current data. The techniques used for Predictive Analytics are: automated machine learning algorithms, data mining, artificial intelligence, and predictive modeling. Predictive Analytics is going to expand its impact in the world of eCommerce in the coming years.
Predictive Analytics helps online retailers get better insight into what will make the customers to respond to their calls to action or buy their products, and through which platform the customers are going to interact with their brand. eCommerce industry can benefit by turning the data generated from Predictive Analytics into actionable insights.
Let us discuss in detail how Predictive Analytics will drive the growth of the eCommerce business.
Relevant Promotions and Recommendations
Predictive Analytics uses machine learning to understand consumers’ behavior and determine what products they are looking for. Based on this, retailers can offer relevant recommendations that are likely to generate a sale.
Furthermore, Predictive Analytics helps identify the promotion strategies that worked best in the past. Retailers can analyze the browsing pattern of the consumers and offer the right promotions in real-time.
Management of Supply Chain Process
It’s easy to understand consumer demand and manage supply chain management process, including planning, forecasting, sourcing, delivery and returns, through Predictive Analytics. Large retailers can utilize the results generated by Predictive Analytics in avoiding out-of-stock items, better inventory management, optimized use of cash flow and warehouse space.
Retaining Repeat Customers
Predictive Analysis technologies enable retailers to offer the right product to the right customer, in the right way at the right time. Based on this analytical approach, businesses can optimize their communication strategy in advance in order to confirm purchasing trends. This, in turn, converts new customers to repeat customers.
Real-Time Pricing Management
Predictive Analytics offers insights into available inventory, competitor pricing, customer activity, desired margins on the product, preferences and order history, and historical product pricing. Using these inputs, retailers can set real-time pricing for the products in order to maximize profits.
In the changing business environment, the only way to create a greater impact on consumers is to offer innovative services. Predictive Analytics helps retailers transform and reshape the online shopping experience and exceed customers’ expectations by providing real-time insights into the performance of multiple channels, current and future marketing trends, and consumer behavior. Moreover, Predictive Analytics enables eCommerce businesses to promote targeted advertising and optimize costs. If you also want to stay ahead of the competition, include Predictive Analytics in your marketing strategy. For more information on how to use Predictive Analytics in reaping benefits to your business, contact Ranosys.