Predictive analytics (PA) have lots of different applications, from weather forecasting to contextual advertising, business projections and more. But there’s one area where this technology really shines, and that is the realm of ecommerce. By using predictive analytics for ecommerce, you’ll have the ability to anticipate a shopper’s wants and needs, increasing sales by a significant margin in many cases. So what are the best strategies for using predictive analytics for ecommerce? And how do you implement this technology with your existing virtual storefront?
Strategies for Using Predictive Analytics for eCommerce
You have many options when it comes to using a predictive analytics engine to grow your ecommerce business. Here are three winning strategies you may choose to implement in your virtual storefront, whether it’s positioned on a mobile app, online or both:
- Offering Shopping Recommendations: Predictive analytics can be used to determine which items are commonly purchased together. This means your PA engine can generate suggestions for shoppers, which may be presented as recommendations for items that are commonly bought together or simply, “recommended products.” This is one of the most visible and well-known uses for predictive analytics technology. It’s also one of the most useful because relevant shopping recommendations can dramatically increase order totals and overall customer satisfaction.
- Improved Management of Your Stock: Predictive analytics ecommerce applications can enable you to identify shopper trends and forecast demand for various products. With this insight, you’ll be able to stock your warehouse in a highly efficient manner. Not only can you adjust your purchasing habits, but you can also pre-position stock in strategic warehouse locations for prompt order fulfillment. The net effect is improved stock management efficiency, less waste, and greater customer satisfaction since you’ll reduce the chances that customers will encounter items that are out of stock or experience slow order fulfillment. At the end of the day, this spells greater profit for your business.
- Better Price Management: A well-crafted predictive analytics engine can perform an in-depth data analysis, coming up with recommendations for the ideal price point for a given product or service. Retailers are constantly striving to find a balance when it comes to pricing and profits. Over-price items and your sales will drop off, but there’s also a good chance you’re missing out on profits if your stock isn’t priced appropriately. A PA engine can analyze data and determine the highest price customers are willing to pay for a given item. This way, your shop will see the best possible profit margin, without alienating customers because your prices are too high.
These are just a few of the ways in which you can use predictive analytics. Really, a custom-developed predictive analytics engine is the closest you’ll get to a crystal ball, as predictive analytics are highly effective at forecasting the future for your company. PA engines are also great for companies that have limited their focus to the mobile realm since this technology is quite useful for improving your rate of app installs, engagement and ultimately, your bottom line. What’s more, it’s possible to leverage analytics in order to gain insight into your target audience, giving you the knowledge you need to optimize user experience.
Hiring a Predictive Analytics Developer
In order to see the greatest gain from your predictive analytics engine, it’s vital that you turn to a developer who is well-versed in emerging technologies. That’s because predictive analytics are often paired with other technologies beyond just mobile app development, including big data, machine learning and artificial intelligence. At 7T, our developers specialize in all these areas and many others, including augmented reality, virtual reality and natural language processing. Therefore, we’re well-positioned to develop the technology you need to leave your competitors in the dust!
Based in Dallas, 7T works with clients throughout Texas, including in Austin and Houston. But our clientele isn’t limited to the Lone Star State; we work with clients throughout the United States and beyond. We encourage you to reach out to our team today to discuss your next development project.