The fastest growing phenomena in ecommerce currently is the explosion that is personalisation. And the top facility for delivering profit remains email marketing. Not only does it remain the top go-to solution adopted, but it annihilates the completion by delivering 70% or more of most ecommerce retailers ROI. Combining the two, using a system called predictive personalisation software (PPS), has therefore become critical for use in ecommerce.
Isn’t it annoying when someone tells you how you could have got something much cheaper, just after you paid for it? Then what if every day of your life from now on, you were losing out in exactly the same way, but for someone telling you?
You may well ask what has this to do with email software? To explain; as an ecommerce marketer, you will more than likely have it fixed in your head that there are prescribed ways of doing things, and anything outside this is either too wacky, especially if you are in an enterprise environment, or believe it is already being addressed and therefore catered for. And let’s face it either of these allows you to relax, give yourself a pat on the back and do nothing.
We’re not looking to upset the apple-cart here, we simply want to introduce you to PPS, predictive personalisation software. ESPs are not PPS software. PPS uses data received from individual visits by your identified consumers as they come to your site. It then uses this to best calculate what they are most likely to buy next. Similar to offering personalisation on your site itself, this has the further advantage of taking these products, the hottest predicted purchases for each individual, direct to their inbox.
Most of the worlds most respected research houses have already spotted it’s phenomenal returns, including the likes of McKinsey and Statista.
Personalised product selection for the the start-up
No money, no time but everything points to the greatest return in marketing still is, and probably always will be, email marketing.
Everyone and their dog has a favourite email service provider, here’s a bunch of the ones we put together that everyone considers: choosing the best email marketing software.
But what if you don’t have time to sit down for a couple of days every month, to select products? And probably you don’t yet enjoy being able to afford software to identify what products are most suitable to what customers.
Instead you could install PPS software, which does it all for you, so no human being – pertinently – staff with all their inherent overheads, never, ever needs to touch it.
Imagine spending as little at £100 per month and getting an additional 20%, or £38,459 turnover as a consequence. (See above). No staff involved whatsoever, each consumer getting emails of exactly what it is they are interested in buying, a couple of times a month.
These are actual stats, taken today, with a referral provided by the client here. The bottom right hand corner box identifying attribution by the client’s other activities, together with attribution delivered as a direct result of PPS.
PPS for the the Seasoned Marketer
You probably employ many email marketing staff, adopting data analytics, which play an important part if matching ideal consumers on your database to specific products, be they the new season’s fashions, new beauty product, latest offers etc. Segmenting, which is not personalisation, most likely plays an important role in your current fortunes, but it also has a utopian extreme. PPS software is segmenting to the nth degree #1, unique and individual selection of products personal to each individual.
No two emails are every the same. As the data, returning from each delivered email, is in turn analysed and play a part in learning about that individual. Whatever had the highest predicted possibility of being purchased, moves in favour of even better quality of product rankings, if the provocation didn’t achieve its desired result. It constantly changes as it updates and perfects, sometime by the nano-second.
Products compete, just as brands do in life, to capture and inspire the consumer into purchasing. The advantage of PPS software, is that the field of play selected is an exclusive one, within the private confines of the recipients home, not constricted by consideration of your site against your competitors.
There are additional benefits of consideration, such as PPS as a stand-alone, getting rid of your ESP altogether, but that’s for another day.
What is the critical factor here is the net effect. If you only ever send your consumers things they love and want, you stand out against your peers. You win the increase in average order value, and in turn maximise customer lifetime value, as churn dissipates to nothing.
You are personalising offerings, on an individual level. To them it suddenly seems that instead of an organisation badgering them, it’s their favourite assistant who has spotted something they know you would love. The human face of customer relationships, nurturing loyalty.
You also need to consider your rate of return of goods (RoR). If sending speculative offerings to segments delivers your existing RoR rate, then sending them what they want instead, it obviously eliminates returns. How much a year is that alone worth to you? No wonder PPS is smashing records.
To come back to the beginning, if someone doesn’t tell you before you need to know, it’s an annoying reason for losing out, but if having had it explained to you, you then hesitate, or do nothing, then that’s down to you. To verify these returns on your own site, SwiftERM offer a free 30 day trial of PPS software, with no lock-in. PPS should be on all ecommerce websites without exception.