How predictive algorithms help you to engage and retain visitors
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Personalisation 2.0 Predictive algorithms for behavioral targeting to engage and retain visitors David Goy & Dr. Jan-Paul Lüdtke 11.08.2015
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Transcript of How predictive algorithms help you to engage and retain visitors
Personalisation 2.0Predictive algorithms for behavioral targeting to
engage and retain visitors
David Goy & Dr. Jan-Paul Lüdtke11.08.2015
Onsite optimisation and personalisation are not the same
Multivariate Testing is not enough
Winning options in A/B/n tests neglect important needs
Winning options in A/B/n tests neglect important needs
Variation A
Variation B
13% CR = Winner ?
8% CR
BUT
We need to consider all relevant KPIs!● What about
likelihood of recurring visits and purchases?
● What about returns?
● And what can we do about the remaining 87%?
Personalisation must not follow simple rules
Session-based heuristics neglect the nature of online purchases
70% of online shoppers leave tabs between purchases
43% of online shoppers take multiple sessions to make a purchase
BUT
Visitors will abuse session-based heuristics
Behavioral targeting requires algorithmic understanding and reaction to visitors
intentions
Online retailer need to consider complete customer journeys
+
EXIT
EXIT
5£
SIZE SELECTOR
Smart algorithms identify the right targeting moments
How Gaastra moved from simple heuristics to intelligent on-site
personalisation
About Gaastra
at a glance● Founded in 1897● Leading premium brand for sailing
fashion● Online shop since 2007 and active in five
countries● Personalisation solutions
○ Recommendation and cross-selling engine
○ On-site targeting○ CRM-Segmentation
How real-time targeting started at Gaastra
Trigger rule: Exit gesturesLocation: Position in centre of pageContent: 10% off
Major drawbacks ● Workload ● Lacking performance transparency● High costs due to high display count of incentives ● Affiliate network provision
From rule-based targeting to behavioral personalisation
Demo: http://akanoo.com/de/interactive/workshop/Results
Major benefits● Proactive campaign management and
optimisation● Reduced and more specific amount of targeting ● Full transparency on added revenue and CLV
+33%CR
UPLIFTvs. control
group
+16%REV
UPLIFTvs. control
group
+5.7%TOTAL
CLVon overall shop
Your Personalisation Check ListTick the boxes and your personalisation partner will improve your bottom line
Considers different visitor personas.
Prevents coupon or voucher abuse.
Only charges for truly incremental revenue or profits.
Proves that personalisation increases Customer Lifetime Value.
