Predictive analytics helps the intelligent algorithms make the correct predictions. Using responses from customers in the online shop, the intelligent algorithms develop by learning, all the while collecting data to support the sales process. Predictive analytics determines the probability of a sale for each individual online shopper. The data used for the analysis comes from a shared knowledge database.
2. A Knowledge Database
The information collected by the intelligent algorithms in the online shop needs to flow into a shared knowledge database. Each service collects information regarding the click and purchasing behavior of online shoppers (as pseudonymised data) and transfers this information to the other services, enabling the services to learn from each other and independently. This arrangement also ensures that no important information is lost, allowing a more comprehensive personalisation process.
Before it is integrated, the knowledge database must be prepared by importing your product catalog. Doing so will ensure that the algorithms can start learning about your products, even before being integrated into the online shop.
3. Services for the Entire Digital Customer Journey
To offer online shoppers a unique shopping experience, personalisation software must cover the entire digital customer journey, i.e., it must establish one-to-one communication between the customer and the online shop from the initial transaction phase through to the after sales phase.
Personalisation software must therefore tackle four “worlds of experience”, i.e., the software must guide, advise, inspire, and connect. A software service is assigned to each world of experience and takes responsibility for communicating with shoppers in the relevant scenarios.
Intelligent Search is a software service that guides online shoppers around the online shop, helping them to quickly navigate to the product they wish to purchase and, in turn, reducing the bounce rate. Guided Selling software ensures that online shoppers buy the correct product and feel that they have been given meaningful advice, leading to fewer returns. A Recommendation Engine compares relevant recommendations and inspires online shoppers to visit different pages of the online shop, resulting in an increase in the cart value. Finally, Personalised Emails ensure that customers come back to the online shop as a result of receiving information relevant to their needs. These four software services are required in any effective personalisation software so that all four worlds of experience can be covered.
4. A Modular Approach for the Individual Services
Personalisation software must contain the above four software services for the entire customer journey to be truly personalised. However, using services that are modular in design can give you a certain degree of flexibility at the beginning of your personalisation process. This approach will allow you to start with one service and one world of experience, and build up the level of personalisation from there.
5. A Code Snippet for Integration
Integrating the personalisation software is a quick and easy process. It’s usually sufficient to use a code snippet when integrating the software into your online shop. Doing so will establish a connection to the knowledge database, and therefore to the software services. The intelligent algorithms can begin collecting data about the click and purchasing behavior of your online shoppers immediately —
and after that, everything should run automatically. The intelligent algorithms need to transfer the information about this behavior to the knowledge database so that it’s accessible to all of the software services.
A different code snippet is required for visual elements, such as a recommendation widget for suggesting products. However, this is only necessary if you do not have any corresponding widgets already integrated into your online shop, or if you wish to alter the design or add new functions.
6. A Backend for Configuring the Services and Measuring their Success
A backend for the personalisation software is essential if you wish to measure the success of the software and make adjustments. The backend contains key figures and analyses for each of the software services. In addition to measuring success, the backend is where you can make adjustments for the purpose of increasing sales, allowing you to control the level of personalisation in your online shop and test new marketing strategies.