The Predictive Analytics Boom and Its Impact on E-commerce Marketers Today
Steadily but surely, predictive analytics has been gaining in popularity. It’s expected to explode this year as it becomes more accessible and goes from being a competitive advantage to a necessity. To fully understand how it impacts e-commerce marketers today, first we’ve got to look back to the past.
Traditionally, predictive analytics has been reserved for top brands such as eBay and Netflix. eBay is focused on using predictive analytics to make its shopping experience better for both buyers and sellers. Indeed, eBay considered predictive analytics so important that it acquired SalesPredict to boost its AI, machine learning and data science efforts.
When a company like eBay spends millions on an acquisition for the sake of predictive analytics, e-commerce marketers must take note.
There are a couple of reasons that eBay made this move:
- Better understanding of what their customers wanted.
- Access to advanced insights for improving conversion rates and accelerating sales cycles.
- More targeted offers with relevant information for buyers.
- The ability to build-out predictive models that can define the probability of selling a given product at a given price over time.
In other words, predictive analytics answers some of the biggest challenges facing e-commerce marketers and business owners.
How to Use Predictive Analytics Like eBay Does
To achieve similar benefits to eBay, you only need to take the following four steps:
- Track e-commerce metrics and create a one-day forecast. Then identify any deviation between the forecast and the actual metrics.
- Determine the cause of deviations from your one-day predictions. Assuming the deviation can be minimized, take steps to do so; otherwise, use it to establish a confidence level in your predictions.
- Create progressively longer-term predictions, ranging from one day to 18 months.
- Use predictions to answer “what if” questions such as, “What if we increase advertising spend?” or “what if we decrease stock for this item?” and more.
Obviously, it’s easier said than done, but with the proper tools and strategy, you can be predicting the future in no time.
Overcoming Common Challenges
Predictive analytics isn’t without its challenges. For one, it can be difficult to trust the data, especially when your “gut” and past experiences may indicate otherwise. But even more challenging is doing predictive analytics right.
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Here, we’re uncovering 8 myths commonly ascribed to the role of social media in online reviews:
Myth #1: My business needs to be present on every social network
This myth is perhaps the saddest and most misinformed of the bunch—if you’re trying to rake up likes, follows, and comments across every social network and ranking platform possible, you might as well be chasing your tail, as it’ll be a never-ending game of catch-up that won’t be worth the time and effort invested. Instead of spreading yourself thin, focus on the platforms where your greatest audience segments already spend their time and interact with your business. Though your customers may be present on all such platforms, focus your time and attention on those with the greatest engagement with your brand, and respond accordingly.
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From well-known voice-powered AIs such as Apple’s Siri to upstarts like Viv, Clara Labs and x.ai, their goal is to quicken the actions you already take on your personal and business devices, growing ever-more efficient at the job by learning from your behavior.
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Here are some household names that got it right:
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As the inside sales market grows, sales managers need to stand out. Outstanding salespeople should be aware that markets are dynamic and so are client needs and requests. The ever-changing society we reside in requires professionals to be aware of these changes, and to respond adequately while still remaining flexible.
To keep up with the pace and accelerate sales, Sales Managers should always consider reviewing and improving their sales strategies.
5 Inside Sales Strategies You Should Consider to Become the Next Sales Guru:
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But, there’s a catch: when growing your business, defining and managing internal processes for your sales team may create a problem. Your employees are not just sorted variables, they are people. And for them to represent you well in front of your customers, you need to empower and motivate them while you introduce new work methods.
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The completely innovative introduction of ecommerce platforms and websites has allowed brands and business in general to enhance their customer base and, most importantly, user experience.
Today, it takes creative methods for a brand to stay relevant in the ever-changing tide of the online world. Furthermore, to maintain ownership of its user base, it must redefine online engagement. So what are we waiting for, let’s get your engaged users back!
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