You have mastered the use of data to learn about the past performance of your ecommerce business. But, can you predict the future? With a predictive analytics model, you can come quite close.
Predictive analytics uses algorithms to crunch your data. Learn about some of the ways this model can help you forecast your business’s future, using the same data you used to tell the story of your past.
1. Improve Your Customers’ Experience
This is about differentiating yourself from your competitors. If the competition is a large enterprise, it will be hard to compete on price. But you can influence your approach to customer service. Predictive analytics can help you supply customers with personalized, targeted content.
2. Predict Search Terms
If you can predict what a customer will search for based on past behavior, you will improve the shopping experience. This is epically important because more and more customers use mobile devices to shop. Helping them reduce keying on a mobile phone can keep them coming back to your site.
3. Personalize Recommendations
When you capture information about the behavior of shoppers and then use the information to predict what else they might like, you improve the shopping experience. Moreover, and better for your bottom line, you also increase sales.
4. Manage Future Inventory
Studies show that a big reason why people abandon online shopping carts is that the item they want is out of stock. A predictive analytics model can help you track customer demand and stock items before cart abandonment becomes a consideration.
5. Identify Slow Sellers
Predictive analytics will show you what is not selling as hoped. You can then take action to reduce prices, return inventory or focus on items that sell better.
6. Reveal Hidden Trends
Additionally, predictive analytics can reveal trends in your marketplace before you can see them. Without knowledge of the next “big thing, you will not be able to supply customers’ demands for a newly popular product.
7. Optimize Your Pricing Strategy
Finally, predictive analytics helps you determine whether price changes, either up or down, will improve or hurt sales.
Do It Yourself or Get Help—Just Be Sure to Do It Right
Predictive analytics is much easier today than when it first appeared. Numerous software packages will allow you to do it yourself. You could also consult with a marketing specialist skilled in ecommerce and online retail needs. You will find such a specialist at Legit Click Media. Either way, know that once you commit, you must remain fully committed, as your predictive analyses will only improve with time and increased data.
