How predictive algorithms help you to engage and retain visitors

Personalisation 2.0Predictive algorithms for behavioral targeting to

engage and retain visitors

David Goy & Dr. Jan-Paul Lüdtke11.08.2015

Onsite optimisation and personalisation are not the same

Multivariate Testing is not enough

Winning options in A/B/n tests neglect important needs

Winning options in A/B/n tests neglect important needs

Variation A

Variation B

13% CR = Winner ?

8% CR

BUT

We need to consider all relevant KPIs!● What about

likelihood of recurring visits and purchases?

● What about returns?

● And what can we do about the remaining 87%?

Personalisation must not follow simple rules

Session-based heuristics neglect the nature of online purchases

70% of online shoppers leave tabs between purchases

43% of online shoppers take multiple sessions to make a purchase

BUT

Visitors will abuse session-based heuristics

Behavioral targeting requires algorithmic understanding and reaction to visitors

intentions

Online retailer need to consider complete customer journeys

+

EXIT

EXIT

5£

SIZE SELECTOR

Smart algorithms identify the right targeting moments

How Gaastra moved from simple heuristics to intelligent on-site

personalisation

About Gaastra

at a glance● Founded in 1897● Leading premium brand for sailing

fashion● Online shop since 2007 and active in five

countries● Personalisation solutions

○ Recommendation and cross-selling engine

○ On-site targeting○ CRM-Segmentation

How real-time targeting started at Gaastra

Trigger rule: Exit gesturesLocation: Position in centre of pageContent: 10% off

Major drawbacks ● Workload ● Lacking performance transparency● High costs due to high display count of incentives ● Affiliate network provision

From rule-based targeting to behavioral personalisation

Demo: http://akanoo.com/de/interactive/workshop/Results

Major benefits● Proactive campaign management and

optimisation● Reduced and more specific amount of targeting ● Full transparency on added revenue and CLV

+33%CR

UPLIFTvs. control

group

+16%REV

UPLIFTvs. control

group

+5.7%TOTAL

CLVon overall shop

Your Personalisation Check ListTick the boxes and your personalisation partner will improve your bottom line

Considers different visitor personas.

Prevents coupon or voucher abuse.

Only charges for truly incremental revenue or profits.

Proves that personalisation increases Customer Lifetime Value.

Any further questions?Find more information on akanoo.com or

write us a mail to hi@akanoo.com!