As this year comes to a close, you’ll no doubt see many articles, blog posts, tweets, etc. talking about predictions for 2016. The technology world is maniacally focused on understanding what retailers and marketers are going to care about in 2016. One contender for top dog in 2016 is Predictive Analytics. Let’s start with the basics. What does the term Predictive Analytics mean?
According to WhatIs.com, “predictive analytics is the brand of data mining concerned with the prediction of future probabilities and trends.” Now if I was to simply look at this definition, I would assume that leveraging predictive analytics in marketing campaigns seems pretty complicated, and it is, if I have to run the data myself. In fact, I would need to employ a data scientist in order to fully understand how to effectively use predictive analytics and insights in my marketing campaigns.
Obviously, the retail world has been toying with some aspects of predictive analytics for a while now with tools such as dynamic product recommendations. However, the world of actionable predictive data insights is about to get a whole lot larger. As retailers collect more and more data, and companies like Windsor Circle work to harness all of this rich data that is sitting in retailers’ eCommerce platforms just ready for plundering, the life of the marketer only gets easier.
Campaigns Leveraging Predictive Analytics
AUTOMATED PRODUCT REPLENISHMENT
Retailers with consumable products are in a unique position to get in front of customers on a regular basis with automated product replenishment emails. Our clients have seen a 16% purchase lift with automated replenishment emails. Let’s take a look at how this works. If a customer has purchased from a retailer more than two times, retailers can trigger a replenishment campaign based on each customer’s unique buying cadence. New customer replenishment emails are sent based on aggregate data - essentially we look at the average amount of time it takes for a customer to re-order based on all customers in the retailer’s database. A few tips when sending replenishment emails:
- Factor in shipping time: when creating an automated replenishment campaign, make sure that you’re getting in front of your customers early enough that shipping won’t be an issue. We suggest creating a three part series, sending one email anywhere from 7-14 days before the replenishment date, a second email 0-3 days before the replenishment date, and a third email 5 days after the replenishment date.
- Include product recommendations: now that you’ve got your customer’s attention, it’s a great time to showcase your new offerings or items that pair well with their replenishable product. Use a mix of dynamic product recommendations and static product images to achieve the results you want.
- Make checkout a breeze - if you have the capability to enable one-click purchasing, great. If not, make sure that your “buy now” button takes customers to the exact page they need in order to add an item to their cart.
BROWSE ABANDONMENT CAMPAIGNS
Onsite tracking is another important tool that retailers are using on a more regular basis. With access to information on how long a visitor stays on your site, what products and categories they look at, and how long they viewed said products or categories, retailers can set up browse abandonment campaigns to bring visitors back to their site to make a purchase. According to a study by Experian, browse abandonment emails see 6x the revenue and 4x the conversion rates when compared to regular promotional emails. Interested in setting up browse abandonment campaigns? Here are a few tips:
- Don’t try to boil the whole ocean: sure, lots of people visit your site and leave; however, it’s important to hone in on specific visitors based on measurable criteria. To figure out what criteria and thresholds should be used to indicate an interested party, log into Google Analytics and run a report for the past year. You’ll want to look at the following metrics for each of your top category and product pages: average time on page and number of unique and total views. This will help inform what thresholds you should set for time on page, number of pages visits, etc. when setting up your triggered email campaigns.
- Keep it casual: When writing the copy for your browse abandonment emails, make sure to keep the subject line and content causal. The last thing you want to do is creep out your visitors by sounding too Big Brother-ish. Ensure that you are putting your best foot forward by using helpful language, such as “We’ve saved a curated list for you” or “Based on your preferences, we thought you might like these items.”
While there are many different campaigns and insights that predictive analytics can help retailers uncover, replenishment and browse abandonment emails are crucial components to any eCommerce retailer’s arsenal. Download our free guides below to learn more.
Download the Replenishment Guide to learn more about Automated Replenishment Campaigns.
Download the Browse Abandonment Guide to learn more about onsite tracking and creating Browse Abandonment Campaigns.