Increase Revenue with Predictive Intelligence
The power to accurately predict has helped people gain an edge in business, in politics, and in life in general. It's traditionally been very hard to do, more art or magic than science — but in recent years, that is changing. The rise of big data and machine learning has led to methodologies that can be applied in all kinds of scenarios. Often called "predictive intelligence" or "predictive analytics," these methodologies have been applied to more accurately predict the weather, financial markets, elections... even the building of a competitive baseball team.
Predictive intelligence is based on observation of customer behavior and, with every action taken, the building of a profile of customer preferences. That information is then used to anticipate customer wants and needs and predict which content would be the best to deliver in real time across any channel.
The Rise of Predictive Intelligence in eCommerce
A key goal in eCommerce is improving the customer shopping experience by making it more engaging and relevant to users. To achieve this, there needs to be an understanding of user intent. Online retailers are increasingly using predictive intelligence to reach this goal.
Personalization is essential for brands to meet their consumers' expectations of a unique, customized experience without a lot of work. Companies leveraging the use of data and predictive intelligence to develop a better understanding of their customers and to provide a tailored, yet scalable user experience is becoming the norm.
Predictive intelligence in eCommerce takes many forms, such as a product recommendation engine which can analyze a consumer's purchase history and online behavior. With this data, the product recommendation engine determines the user's intent-to-purchase to provide a tailored experience to the user. The goal is twofold: customer retention and sales conversion. As an example of the potential power of this tool, Amazon's recommendation engine drives 35 percent of its revenues.
Transparency Market Research forecasts that the overall market for predictive analytics will reach $6.5 billion by 2019, up from $2 billion in 2012. According to Salesforce, a benchmark survey found that companies using predictive intelligence saw increases of 10 percent in website revenue, 35 percent in email click-through rates, and 25 percent on email conversion rates.
Instart Logic's Predictive Intelligence Solution
As an IBM WebSphere Commerce and IBM Commerce on Cloud partner, Instart Logic understands the role of predictive intelligence online. Fast-loading websites are crucial to creating an enjoyable user experience. Combining IBM's Performance and Security Suite with Instart Logic's services, customers have reduced their load times in half.
Consumers expect a quick-loading, relevant, customized online shopping experience. Predictive intelligence helps achieve the relevance goal, but how does it improve performance?
Instart Logic's Multi-page Predictive Prefetching solution provides the ability to predict what pages a user will navigate to next and optimize delivery of those pages preloading the content they are most likely to request. The goal is to provide a great customer experience by removing performance issues that may lead to shopping cart abandonment.
We leverage our unique client-side architecture, using machine learning algorithms to collect and analyze information from real user interactions to predict the pages a user will visit next. With this knowledge, a retailer can speed up their page load time, thereby improving the user experience and conversions.
Lack of data can be a challenge for companies that are new to predictive intelligence. With our solution, we collect all the data, perform the analysis, and provide the page prediction. In other words, we do all of the heavy lifting for you.
The incredible amount of available data has created the perfect opportunity to meet customer demand. What's more, customers have come to expect this type of relevance and speed from online retailers. In today's world of eCommerce, predictive intelligence has evolved from a nice-to-have feature into a must-have tool.