Over the years, personalization has become a huge and inevitable part of any e-commerce business. Customers expect your marketing to be personal, so every interaction needs to be tailored to their personality and preferences.
To ensure your recommendations are relevant and unique, one of the best options is a product recommendation engine.
Not only should it significantly increase conversions but it should improve your customers’ overall shopping experience, decrease spam rates and advertising costs. So, in case you aren’t already using recommendations, you might end up rethinking it after reading this blog post.
What is Smart Customer Targeting?
Before we even start going into the details, you might be wondering what exactly Smart Customer Targeting is? Think of it as a solution that helps your business match the right customers to the right products.
Smart Customer Targeting allows you to discover your customers’s interests and target them with relevant product offers at the optimal time.
This ensures that you’re delivering the right message through every marketing channel, while minimizing advertising costs and customer churn.
On top of that, you are also creating a win-win situation. Your business is driving more sales while having happier and more loyal customers in the long run.
Personalize Every Experience
Improving your product recommendations is the “low hanging fruit” of e-commerce businesses. You might think, even though the current recommendations I’m using aren’t helping my marketing campaign, it shouldn’t hurt leaving them as is.
But how likely would you be to purchase a recommended product that’s actually not relevant to your preferences?
Having that in mind, we wanted to build an app that would improve today’s recommendation engines. So we developed the Smart Customer Targeting app – using a neural network based approach.
Neural networks are one of the most powerful techniques for building predictive models. They collect and analyze massive amounts of historical data for all customers, not just for some.
This way, you are easily able to discover the right customers to target with relevant product offers and with the highest accuracy.
Increase Purchase Frequency
There are many reasons why increasing your customers’ purchase frequency is important. But, if you’ve ever tried it, you know that it is the most efficient yet difficult part of your sales strategy. It’s no secret that the more you know about your customers, the more effective your marketing efforts will be. With the Smart Customer Targeting app, there’s no random guessing.
Our algorithms are here to improve your predictions by up to 230% - making sure you’re always recommending relevant product offers.
On top of that, you can also identify which products increase or decrease the purchase probability. For example, if the products listed below were previously purchased, they will be likely to increase or decrease the chance of buying Dark Chocolate by a given amount.
We can see that Milk Chocolate increases the purchase probability by 230%, while White Chocolate decreases it by 80%. Meaning, there’s a minimum chance that a customer who purchased White Chocolate will buy Dark Chocolate.
What do we really mean?
Let’s say that the overall probability of buying Dark Chocolate is 20% (0.2). In this case, for users who already bought Milk Chocolate, this probability increases by 230%, which results in the final probability of 0.2 + 230% * 0.2 = 0.66 = 66%.
On the other hand, for users who already bought White Chocolate, this probability decreases for 80%, resulting in the final probability of 0.2 – 80% * 0.2 = 0.04 = 4%. We could also explain this by saying that customers who fancy really sweet white chocolate, usually won’t also like the bitter, dark chocolate.
Improve Customer Experience
We can all agree that the ultimate goal for almost every e-commerce business is providing excellent customer service to every individual. Meaning, having a large “pool” of happy and loyal customers who keep coming back again and again. But every customer has different purchasing criteria, so personalization is the key.
The more you increase the relevance of your messaging and recommendations - the more likely your customers are to make another purchase and keep coming back.
Save Time And Money
With the power of Smart Customer Targeting, you can instantly deliver highly personalized product recommendations that both save time and make money.
Not only is your paid content going to be more effective, but customer engagement will increase and your marketing efforts won’t go unnoticed. Yes, all of that – while saving time and money.
Not Convinced Yet?
Start your free trial today and take your predictions to the next level! Feel free to contact us for any questions or schedule a demo with our team to learn more about the app.