by Dr Jonathan Salisbury, Test Manager and Data Scientist at Now Interact
Here at Now Interact we’re always looking for exciting new ways to use our Predictive Intelligence. In this post we discuss how Predictive Intelligence can prevent cart abandonment.
One idea we’ve been trialing recently uses a newly developed dimension of our Predictive Intelligence to analyze when visitors are about to abandon a purchase in order to find discount coupons elsewhere on the web.
The first group of shoppers we studied displayed a strong buying interest but then began to exhibit behavior indicating they might leave the store. Despite their intentions to abandon their purchase this group still has a high probability to convert, so they’re worth getting back.
By targeting discount coupons at this group just before they plan to leave the site we increased their conversion rate by roughly one-third, and delivered a tidy increase in revenue to our customer.
Selective use of coupons to increase conversion
Another test used our Predictive Intelligence to target visitors much earlier in their buyer journey. These visitors had very low conversion rates but when targeted with our interaction we managed to double their conversion rate, bringing this customer segment above the site average.
Using a coupon to increase conversion is nothing new, but by intelligently targeting the coupon we avoid showing it to the vast majority of visitors who don’t need any further reason to buy. This allows us to make a stronger offer to those who really need that little extra encouragement to buy.
This targeting also guards against Coupon Fatigue – the experience of being offered coupons so often that 15% off becomes the new normal, full price feels overpriced and nothing less than 25% off will induce any feeling of urgency.
Disruption is key
While offering a coupon is a proven method of altering visitor behavior, it is by no means the only way: anything that will disrupt high abandonment behavioral patterns should in principle be beneficial.
The possibility exists to use the same Predictive Intelligence to positively push disruptive interactions, using messages to guide visitors back into shopping behavior. We can do this by showing visitors either a coupon offer, a splash linking to a special offer elsewhere on the site, a short term discount on an item they’ve been viewing or indeed the offer to interact via another channel.
The benefits might be more subtle than offering a coupon, but they’re also far less expensive.
We’re still researching the full possibilities of the area and I hope to have a lot more to share in the not too distant future, so watch out for future news from Now Interact.
Want to know how our Abandonment Algorithm works? Watch our video explaining the Predictive Intelligence using the link below.